Assume That the Oklahoma Wholesale Lumber Suppliers' Association,a Trade Association

Assume that the Oklahoma Wholesale Lumber Suppliers' Association,a trade association formed by all lumber wholesalers in the state,adopts a "fair competition" plan that divides the state into exclusive territories for member wholesalers.Each member wholesaler is forbidden by the plan to sell to retailers in another wholesaler's territory.Under these circumstances,which of the following is true?

A) Since this is a case of ancillary vertical restraint,the courts would apply the rule of reason to determine whether it is lawful.
B) Since this is a case of "naked" horizontal restraint,the courts would apply the per se rule to determine whether it is lawful.
C) Since this is a case of ancillary horizontal restraint,the courts would apply the per se rule to determine whether it is lawful.
D) Since this is a case of "naked" vertical restraint,the courts would apply the rule of reason to determine whether it is lawful.

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