Question

The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is

a. a situation that neither restrains trade nor harms competition.
b. a legal restraint of trade.
c. a per se violation of antitrust law.
d. subject to analysis under the rule of reason.

Answer 1

Answer: Option C

Explanation: The given case is an example of violation of anti trust laws. Anti trust laws is collection of laws made by Govt. of America to protect the consumer benefit in the market.

A per se violation refers to the violation of anti trust law through any agreement or contract as such.

In the given case, the association has made an agreement within, that will result in consumer loss as it will hinder the competition in the market.

Thus, we can conclude that the boycott of group is violation of an anti trust law.