Author Question: Insurance companies are not liable for CERCLA clean-up. Indicate whether the statement is true or ... (Read 64 times)

bclement10 · **on:** Jun 24, 2018

Insurance companies are not liable for CERCLA clean-up.
Indicate whether the statement is true or false

Question 2

The price for a Super-Heater X50, a residential water heater, is 372.00 at every store in the greater Atlanta area. The water heater never goes on sale at any of the stores. Super-Heater sells other models of water heaters: the X30 for 301.00 and the X60 for 408.00. There is no store selling the heaters for a different price either. Other companies' water heaters sell at the retail levels at prices ranging from 299-603. During sales, those prices drop. Is the Super-Heater pricing mechanism a violation of antitrust laws?

fraziera112 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

FALSE

Answer to Question 2

There appears to be interbrand competition, but controlled pricing. The consciously parallel price would raise a judicial eyebrow, if the manufacturer is controlling how much the retailers can sell the water heater for. This type of resale price maintenance has been allowed in some courts, but it can also be a rule-of-reason violation of Section 1 of the Sherman Act.