Vysion produces TVs it sells nationwide. Vysion contracted with Karol's Appliances to make it the exclusive distributor of Vysion TVs in the San Diego area. Karol's received a promise that Vysion would not sell its TVs to any other retailer within 20 miles of Karol's. In its San Diego stores, Karol's has a unique pricing policy. A higher price is charged to customers wearing suits than to customers not wearing suits. Karol's salespeople give non-suit-wearing customers 10 discounts off of the list price, and refuse any discounts to suit-wearing customers. Don's, a rival of Karol's, asked Vysion to allow it to sell its products in San Diego. Vysion refused, pointing to its contract with Karol's. Vysion's distribution policy differs in New York from what it is in California. In New York, Vysion allows every distributor who asks to sell Vysion TVs. However, Vysion requires that New York retailers sign contracts stating that they agree not to sell Vysion products below prices in a monthly price list sent by Vysion. In contracts with its distributors nationwide, Vysion insists that sales of its TVs be tied to sales of its VCRs. No consumer is allowed to purchase a Vysion TV without also buying a Vysion VCR. If Don's were to sue Vysion because Vysion will not allow Don's to carry Vysion products, what would be the most likely outcome of the lawsuit?
a. Don's would win because Vysion's contract with Karol's is an illegal horizontal restraint of trade
b. Don's would lose because under Leegin Creative Leather, this is a pro-competitive arrangement
c. Don's would win because under Leegin Creative Leather this violates the Clayton Act
d. Don's would lose because Vysion's contract with Karol's is an illegal customer restriction
e. Don's would lose because Vysion's contract with Karol's is per se illegal
Question 2To help determine if a disabled person would be a suitable employee, it would be appropriate to ask questions about their medical background and problems.
a. True
b. False
Indicate whether the statement is true or false
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