Through the power of its purchasing cooperative and its nonprofit status, Mercy Hospital’s pharmacy is able to purchase prescription drugs at much lower prices than community pharmacies. The director of the pharmacy decided to purchase more inventory than the pharmacy needed and to sell the excess inventory to community pharmacies. The hospital benefited by making extra profit and the pharmacies benefited by purchasing the drugs at less than their direct cost from the manufacturer. Explain if this activity is legal and why. What if, instead of Mercy Hospital purchasing and reselling the drugs, it was a chain pharmacy? Would your answer change and why?