An ice-cream franchiser requires its franchisees to


Question: Special Arrangements

(a) An ice-cream franchiser requires its franchisees to purchase all ice cream, cones, and syrups from the franchiser. Does this contract violate the antitrust laws? Why or why not?

(b) Would your answer be the same if the contract also required the franchisees to purchase all of its paper products and cleaning supplies, such as napkins, from the franchiser? Explain.

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Management Theories: An ice-cream franchiser requires its franchisees to
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