Alpha, an Expensive Brand of Watch That Sell for $5,000

Alpha, an expensive brand of watch that sell for $5,000 (suggested retail price) , sells to fine jewelry stores for $2,500. Irritated that Amer's Jewelry is selling the watches to the public for $4,000, while competitors are selling for $5,000, stops selling the watches to Amer's. Amer's sues Alpha for antitrust violation. It is likely that Amer's will:

A) win for price fixing violation of the Sherman Act
B) win for Robinson-Patman Act violation
C) win for Section 5 FTC Act violation
D) lose because it violates the Robinson-Patman Act
E) lose because Alpha has the right to decide who to sell to

Correct Answer:

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