The town of Beautified is home to many corporations. In order to make sure that it establishes a fair competitive environment for all the City Council wants to pass a law— —“Unfair methods of competition are illegal in the marketplace.” Look at the following situations and decide if the law will apply. Identify your reasons.

1. The shoe manufacturer wants to sell to wholesalers only if they agree to sell at a certain minimum price.

2. The three bookstores want to make an agreement that they will advertise and focus on one-third of the city. They will each take one-third and focus their resources on advertising and market resources in that area.

3. A shoe retail outlet wants to open a store in Beautified. About 3 months before the store opens the dominant local shoe outlet negotiates contracts with four major shoe companies to be the exclusive distributor of their shoes.

4. Insurance companies in Beautification have formed an association and agree that the association will develop a price list for insurance services for the area.

5. A used car dealer buys used cars from a distributor. She makes an agreement with the distributor never to sell a used car for less than a specific price.

6. Because there are three t-shirt shops in Beautified the price of t-shirts had just about bottomed out. Then a major t-shirt outlet store decided to open in town. Prior to opening, they bought the building where two of the three t-shirt shops were located and evicted them from the property.

7. The Nash department store is a Beautified landmark. Last year a new store, the Jones Superstore, opened. The new store is big and offers lots of discounts. The Nash department store recently discovered that one of their most reliable brands Go-Tex made an agreement with the Jones Superstore to sell exclusively to them. This line of clothes is a bestseller at the Nash Department store and the owners think that their business will be hurt.