Arlee owns a fast food franchise. He purchases his supplies from various distributors around

the area. Arlee's soft drink distributor decides not to deal with Arlee anymore, because Arlee is
too demanding and always pays his bills late.

Several other distributors individually reach the
same decision. This action is:
A) An illegal horizontal market division.
B) Legal, because it was unilateral.
C) Legal, because it was reasonable under the rule of reason.
D) An illegal group boycott.
E) An illegal vertical market division.


B

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