Which antitrust violation occurs when multiple businesses conspire against another?

Prepare for the Indiana 90-Hour Broker Course Exam. Utilize flashcards and multiple choice questions with explanatory hints. Ace your exam with confidence!

The scenario described in the question pertains to group boycotting, which is a form of antitrust violation where two or more businesses collaborate to exclude or harm a competitor. This type of conspiracy often aims to lessen competition by coordinating actions to discourage or disadvantage an entity in the marketplace, typically through refusing to do business with them or applying pressure on suppliers or other businesses to avoid working with the targeted competitor.

Group boycotting can destabilize market dynamics and limit consumer choices, making it a serious concern for regulators aiming to promote fair competition. This form of collusion can lead to legal consequences for the participating companies because it undermines the principles of a competitive marketplace.

In contrast, other options, while also related to antitrust issues, represent different behaviors: price fixing involves companies agreeing on prices to set rather than letting the market determine them, market allocation involves dividing markets between competitors, and exclusive dealing refers to agreements where a seller restricts a buyer from purchasing goods from competing suppliers. While all these actions are anti-competitive, they do not specifically describe the scenario of conspiring against another business like group boycotting does.

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