Question: 2 . Luanicorp wants to increase its profitability. It sets up an agreement with another company, Wescorp, so that all customers north of a particular
Luanicorp wants to increase its profitability. It sets up an agreement with another company, Wescorp, so that all customers north of a particular countys boundary line must come to Luanicorp for services and all customers south of the same boundary line must go to Wescorp. Which of the following is true of this situation?
a This is an illegal exclusive dealing agreement.
b This an illegal division of market agreement.
c This is legal; the customers will get better service this way as it is closer to them.
d It is impossible to determine whether this is illegal or not.
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