Engaged in price-cutting to increase their respective shares
Sportz Street, Inc., a franchisor of shoe stores, wishes to standardize the pricing practices of its franchisees that have engaged in price-cutting to increase their respective shares of the market. The most prudent remedy might be for Sportz Street to
a. suggest the prices at which its franchisees sell their products.
b. terminate the franchisees who cut prices.
c. undercut the business of those franchisees who cut prices by opening competing stores in the franchisees’ territory.
d. reduce the quantity of the products that it sells to its franchisees.
