Antitrust Law Flashcards
What is the Dodd Frank act of 2010?
Is a conglomeration of a number of acts adopted to promote the financial stability of the United States by improving accountability and transparency in the financial system, ending the idea of “too big to fail”, protecting the American taxpayer by Andy they all odds, and protecting consumers from abusive financial services practices.
What is the Clayton act?
The Clayton act was aimed at anti-competitive behavior not covered by the Sherman act. It was intended to stop such activities in their incipiency (I.e. stop them before they become violations of the Sherman act).
What is the Robinson – Patman act of 1936?
The act amended and strengthened “section 2” of the Clayton act that prohibited price discrimination.
section 2 of the Clayton and Robinson Patman act only apply to price discrimination of commodities of like grade and quality.
What is the FTC - Federal trade commission act?
That act makes illegal unfair methods of competition and it is not confined to activities that were prohibited under the Sherman or Clayton acts. (Misleading acts)
What is “per se” violations?
They are inherently illegal and without legal justification. horizontal restraints are generally “per se”
What are horizontal restraints?
They are agreements between competitors
What are vertical restraints?
They are agreements by those at different marketing levels.
Ex: agreement between a manufacturer and a retailer
What are the two types of price-fixing?
Horizontal price-fixing (I.e. Agreements among competitors to fix prices) is a “per se” violation of the Sherman act.
Or
Vertical price-fixing usually called resale price maintenance
(attempt by manufactors to control the resale price of their products)
What is the rule of reason test of section 1 of the Sherman act?
Section 1 only prohibits agreements that unreasonably restrain trade.
Quartz balance the anti-competitive and competitive effects of the restraint. in applying the rule of reason test, courts consider:
Nature of the business, defendants position in the industry (maker leader, middle of the pack, or minor player), how the restraint will likely affect the interest, and the purport of the restraint (achieve economies of scale vs. crush competition)
What is market allocations under the Sherman act?
They are agreements not to compete in specific markets
I.e. attempts to divide up markets or customers
What’s the Sherman Act?
Prohibits contracts, combinations, and conspiracies that unreasonably restrain trade. The act has 2 prominent sections:
- Restrain of Trade ( 2 or more)
- Monopolies and attempt to monopolize ( can unilateral or 2 or more)
Interstate commerce
What are tying arrangements?
When you must buy one product to get another
What are the two elements of illegal monopoly?
Monopoly power, and
In that power is achieved unfairly.
What is monopoly power?
It is one firm has sufficient market power to control prices or exclude competition.
70% of market share is a monopoly.
Exception: Patent
