Antitrust Law and Unfair Trade Practices Flashcards
Sherman Antitrust, Section 1
an after the fact move when monopoly is formed
forbids agreements between two or more parties which harm competition, horizontal
Sherman Antitrust, Section 2
prevents the act of monopolization, vertical
what has to happen if a administration wants to create a rule
create notice in federal register
Clayton Anti trust act 1914
gives the government the power to prevent mergers
regulates mergers and exclusive dealing
Gives plaintiffs treble damages
when Sherman, Clayton, Roinson packman act are broken
Anti Competitive Behavior
-price fixing
Treble Damages
3x the Damages
Per se violation
so anti competitive that the company will lose and the question is what will the damages be
looks at competitive
horizontal
two or more at the same level,
only per se
vertical
per se or rule of reason
price fixing
-competitors agree to set a universal higher price
-ALWAYS per se violation
-limiting the quantity of product going out or agree not to sell below a certain price
division of markets
-ALWAYS per se violation
-two or more competitors break up the market together
group boycott (refusal to deal)
- two or more competitors decide not to sell to someone
-per se violation
vertical restraint of trade
-two parties at different levels
Resale price Maintenance Agreement
Vertical Price Fixing
setting the minimum or maximum resale price
violation of rule of reason
nonprice vertical restraints
a restraint of trade that is unlawful under section 1 of sherman act if anticompetitive effects outweigh their procompetitive effects
Unilateral Refusal to Deal
does not violate until multiple parties refuse to deal
monopolization of the relevant market
possesses monopoly power
willful act of monopolizing
predatory pricing- lowers the product pricing below what they pay for it to undercut competitors
attempts to monopolize
relevant market
includes substitute products or services
Examining the Lawfulness of a Merger
define the relevant line of commerce
identify the section of the country affected by the merger
what is the probability of the substantial lessening of the competition or is likely to create a monopoly in the market
defenses to monopolization
innocent acquisition of a monopoly
natural monopoly
market extension merger
merger between two companies in similar fields whose sales do not overlap
defenses of section 7 actions
illegal tying
you can purchase this product if you also purchase this other product
price discrimination
selling the same product at different prices
challenging someone with direct price discrimination
prove:
commodities of like, grade and quality
sales to two or more purchasers at the same time
plaintiff suffered injury
indirect price discrimination
defenses to price discrimination
intellectual property
intangible and creative things