Question

Reliable Corp. owns the nationwide chain of Reliable Auto Repair shops. Although Reliable has the single largest share in the nationwide auto repair market, the intensely competitive nature of this market means that Reliable's share is only 8 percent. In a lawsuit filed against Reliable, the plaintiff alleges that Reliable regularly agrees to provide automobile repairs only if the customer whose car needs repairs also agrees to purchase a certain paste wax manufactured by Reliable. The plaintiff asserts that this practice by Reliable violated Clayton Act Section 3. Which of the following is the strongest argument for Reliable to make in an effort to avoid liability?

A. That Reliable does not possess sufficient auto repair market power to appreciably restrain competition in the paste wax market.

B. That most of its customers need to buy paste wax anyway.

C. That auto repairs are not a commodity.

D. That Reliable's competitors in the sale of paste wax are doing quite well, regardless of how much paste wax Reliable may sell in this manner.

Answer

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