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The owner of B&K Inc., a cookie manufacturing company, entered into an agreement with Edwin, a...

The owner of B&K Inc., a cookie manufacturing company, entered into an agreement with Edwin, a retailer. According to the agreement, Edwin was not allowed to sell cookies of B&K at a price lesser than $2 per pack. This is an example of a(n) ____.

  1. runaway shop agreement
  2. horizontal restraint of trade
  3. closed shop agreement
  4. vertical restraint of trade
  5. open shop agreement
business   accounting   
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Answer #1

Option D is correct.

As per the question, selling cookies at a price lesser than $2 per pack is not allowed is an example of vertical restraint of trdae.

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