Leasing License Practice Exam

Price fixing and restricting areas of trade are examples of?

1. contract violations

2. antitrust violations

3. property violations

4. competitive practices

The correct answer is: antitrust violations

Price fixing and restricting areas of trade are categorized as antitrust violations because they undermine the competitive nature of the market. Antitrust laws are designed to promote fair competition for the benefit of consumers. Price fixing involves agreements among competitors to set prices at a certain level, which can lead to inflated prices and reduced choices for consumers. Similarly, restricting areas of trade can create monopolistic practices that inhibit competition and can damage the market environment. These actions disrupt the free market by limiting competition, which is the primary focus of antitrust legislation. Such laws seek to prevent practices that would harm consumer interests, thus safeguarding the fundamental principles of economic competition and ensuring that businesses can operate fairly within the marketplace. This is why identifying these actions as antitrust violations is significant within the context of lawful business practices.