📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      A dominant steel manufacturer imposed a requirement on

      its distributors to maintain minimum markup percentages and not stock competitors' products. Distributors who violated were threatened with supply suspension. Under Section 4, which statements are correct? Statement 1: Imposing markup requirements on distributors is abuse of dominance. Statement 2: The exclusive stocking requirement is justified for brand protection. Statement 3: Threatening supply suspension for non-compliance with anticompetitive conditions is abuse. Statement 4: The manufacturer must prove legitimate business reasons for these requirements. Which statements are correct?
      A Statements 1, 3, and 4 only Correct Answer Incorrect Answer
      B Statements 1 and 2 only Correct Answer Incorrect Answer
      C Statements 2 and 4 only Correct Answer Incorrect Answer
      D Statements 2, 3, and 4 only Correct Answer Incorrect Answer
      E All statements are correct Correct Answer Incorrect Answer

      Solution

      Imposition of anticompetitive conditions is abuse—Statement 1 is correct. Exclusive stocking requires legitimate justification—Statement 2 is incorrect. Threatening enforcement of anticompetitive conditions is abuse—Statement 3 is correct. Dominant firms bear burden of justifying conduct—Statement 4 is correct. Statements 1, 3, and 4 are correct.

      Practice Next
      More Other Laws and Acts Questions

      Relevant for Exams:

      ask-question