Ed was an independent owner of a chain of TV stores. He ...

[NguyenJ]

Ed was an independent owner of a chain of TV stores. He successfully got customers into his store by cutting his prices on widely advertised name-brand products in order to sell other products for which he received a bigger profit. When the manufacturers of three of the name-brand products discovered Ed's actions, they agreed secretly to stop selling him their TVs. The three manufacturers
 A)are doing nothing illegal, as they did not get Ed to agree to anything.
 B)are free to agree not to deal with Ed since the public can go elsewhere and will not be hurt economically.
 C)can choose either as a group to deal or not to deal with any retailer they want.
 D)are engaged in a rule of reason violation of the antitrust laws if their action harms competition.

Question 2

The USTR has requested your advice on whether the following are legal pursuant to the GATT. Please explain each of your answers. Scenario Tax credits extended by the government of India to Indian companies in order to assist in the reduction of greenhouse gases emitted during the manufacturing process.

[nicoleclaire22]

Answer to Question 1

D

Answer to Question 2

Legal. This is a subsidy to foster compliance with environmental standards.