Describe what is antitrust violation

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Reference no: EM131470889

Question: Horizontal Restraints. Jorge's Appliance Corp. was a new retail seller of appliances in Sunrise City. Because of its innovative sales techniques and financing, Jorge's caused the appliance department of No-Glow Department Store, a large chain store with a great deal of buying power, to lose a substantial amount of sales. No-Glow told a number of appliance manufacturers that if they continued to sell to Jorge's, No-Glow would discontinue its large volume of purchases from them.

The manufacturers immediately stopped selling appliances to Jorge's. Jorge's filed suit against No-Glow and the manufacturers, claiming that their actions constituted an antitrust violation. No-Glow and the manufacturers were able to prove that Jorge's was a small retailer with a small portion of the market. They claimed that because the relevant market was not substantially affected, they were not guilty of restraint of trade. Discuss fully whether there was an antitrust violation.

Reference no: EM131470889

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