Mayora Is a Retail Clothing Chain Selling Pollo and Other

Mayora is a retail clothing chain selling Pollo and other quality brand clothing. Mayora has very high prices, usually 30% over suggested retail price. Pollo tells Mayora it is fed up with this high pricing. Pollo tells Mayora to stop selling its products above list price or it will cut off sales to Mayora. Is this a possible violation of the antitrust laws?

A) under State Oil v. Khan, this will probably not be a violation
B) no; such actions are specifically prohibited under the Robinson-Patman Act
C) yes; such actions are a conspiracy to fix price illegal under the Sherman Act
D) yes; such actions may well be held a vertical restraints of trade
E) yes; such actions violate the interlocking directorate section of the FTC Act

Correct Answer:

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