What is the second type of price maintenance?

What is the second type of price maintenance?

• A. Exclusive dealing with suppliers
• B. Inducing a supplier by agreement, threat, promise or any like means, as a condition of doing business with the supplier, to refuse to supply to another person based on the other person's low pricing policy
• C. Discount pricing allowed for all customers
• D. Setting minimum advertised price

Answer: (B)

The second type of price maintenance involves keeping prices from falling by using supply relationships to enforce a pricing policy, rather than directly setting the resale price. It describes a situation where, as a condition of doing business, a party uses agreements, threats, promises, or similar means to induce a supplier to stop supplying another person because that person has a low pricing policy. This is price maintenance through control of supply channels—coercing or compelling suppliers to limit who they sell to in order to protect a chosen pricing stance. It differs from simply fixing a price or advertising a minimum price, and from exclusive dealing or general discounting policies, because the mechanism is the supplier‑side restriction aimed at preserving a particular price environment.

The second type of price maintenance involves keeping prices from falling by using supply relationships to enforce a pricing policy, rather than directly setting the resale price. It describes a situation where, as a condition of doing business, a party uses agreements, threats, promises, or similar means to induce a supplier to stop supplying another person because that person has a low pricing policy. This is price maintenance through control of supply channels—coercing or compelling suppliers to limit who they sell to in order to protect a chosen pricing stance. It differs from simply fixing a price or advertising a minimum price, and from exclusive dealing or general discounting policies, because the mechanism is the supplier‑side restriction aimed at preserving a particular price environment.