Question
9. Tolo Inc. (Tolo) manufactures tools commonly used in the automotive repair industry. Tolo conducted negotiations with a large national retailer that supplies goods to
9. Tolo Inc. (Tolo) manufactures tools commonly used in the automotive repair industry. Tolo conducted negotiations with a large national retailer that supplies goods to a wide variety of consumers called Garage Depot (Garage). Tolo offered to sell its products to Garage and offered a modest discount on the condition that Garage did not carry Tolos competitors products in its stores or online. Knowing that many consumers shop at Garage, Tolo wanted to limit the products sold by Garage to maximize their own sales. Which of the following is correct regarding the arrangement between Tolo and Garage?
a) Tolo could be subject to administrative penalties in a civil proceeding.
b) Garage could be prosecuted, but a cease-and-desist order is unobtainable.
c) Tolo could be prosecuted both criminally and civilly for its actions.
d) Garage could have civil proceedings brought against it and face imprisonment of up to 14 years.
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