Question

The University of Kay and Kaytech University are bitter cross-town rivals. They compete in everything from sports to academics. Due to decreasing enrollment, the schools make an agreement to give all incoming students free tuition for one semester before raising the existing rates the following semester. This action is most likely to be considered a:___________.

A. horizontal agreement in violation of the Sherman Act.
B. vertical agreement in violation of the Sherman Act.
C. tying agreement in violation of the Clayton Act.
D. reciprocal dealing agreement violating the Clayton Act.
E. licensing agreement violating the Clayton Act.

Answer 1

A. horizontal agreement in violation of the Sherman Act.

Step-by-step explanation:

According to the Sherman Antitrust Act of 1890 it restricted the activities related to interstate commerce and the competition arise in the market place

The horizontal agreement is an agreement which is done between the business who are competing with each other in order to modify the competition for all the available competitors in the market

Therefore according to the given situation, the correct option is A.