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In Re: Cardizem CD
a. What are the two standards used to determine violations of Section 1 of the Sherman Act? Identify and explain each.
b. Which tests did the courts apply in Cardizem? What did they rule in each of those cases? Why?
c. Restraint of trade: (1) What is meant by horizontal restraint? (2) What is meant by vertical restraint? (3) Which standard is applied to each of these restraints? (4) Illustrate the differences in a vertical restraint and a horizontal restraint, using McDonald’s, Burger King, and Wendy’s restaurants.
d. Price fixing: (1) What is price fixing? (2) Is price fixing legal? (2) Which test is usually applied to price fixing arrangements?
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