Exam LEAD Topic 5 Question 152 Discussion
Actual exam question for ISM's LEAD exam
Question #: 152
Topic #: 5
Question #: 152
Topic #: 5
A supply manager attends a professional association conference and meets with several supply management colleagues working in related industries. The discussion turns to specific suppliers they have in common, including prices and negotiation experiences. Which of the following is the MOST important reason the supply manager should refrain from this discussion?
Suggested Answer: C Vote an answer
The most important reason the supply manager should refrain from discussing specific suppliers, prices, and negotiation experiences is that these topics may violate anti-trust laws or be considered restraint of trade.
Anti-Trust Laws: These laws are designed to prevent anti-competitive practices and promote fair competition. Discussing prices and negotiation experiences with colleagues from related industries can be seen as collusion, which is illegal under anti-trust regulations.
Restraint of Trade: Such discussions can lead to agreements that restrict competition, such as price-fixing or bid-rigging, which are considered illegal restraints of trade.
Legal Implications: Engaging in these discussions can expose the supply manager and their organization to severe legal consequences, including fines, penalties, and damage to reputation.
Reference:
United States Department of Justice. (2021). Antitrust Laws and You. [Online]. Available: https://www.justice.gov/atr/antitrust-laws-and-you Kolasky, W.J. (2002). Coordinated Effects in Merger Review: From Dead Frenchmen to Beautiful Minds and Mavericks. Antitrust Law Journal, 69(1), 43-74.
Anti-Trust Laws: These laws are designed to prevent anti-competitive practices and promote fair competition. Discussing prices and negotiation experiences with colleagues from related industries can be seen as collusion, which is illegal under anti-trust regulations.
Restraint of Trade: Such discussions can lead to agreements that restrict competition, such as price-fixing or bid-rigging, which are considered illegal restraints of trade.
Legal Implications: Engaging in these discussions can expose the supply manager and their organization to severe legal consequences, including fines, penalties, and damage to reputation.
Reference:
United States Department of Justice. (2021). Antitrust Laws and You. [Online]. Available: https://www.justice.gov/atr/antitrust-laws-and-you Kolasky, W.J. (2002). Coordinated Effects in Merger Review: From Dead Frenchmen to Beautiful Minds and Mavericks. Antitrust Law Journal, 69(1), 43-74.
by Rebecca at Jul 21, 2025, 12:13 AM
0
0
0
10
Comments
Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
Report Comment
Commenting
You can sign-up / login (it's free).