CHP 39 - Antitrust Laws Flashcards
What are Antitrust laws
State and federal laws to maintain and preserve business competition
A violation of antitrust laws occur when
1) There’s monopoly, contract, conspiracy or combination of the 3
2) Restraint of trade
3) Unreasonable restricts competition and functions against public interest
Sherman Antitrust Ace 1890
Most important and the principal federal statute covering competition
Sherman Antitrust Act prohibits these 4 things…
1) Price Fixing
2) Group Boycotts
3) Market Allocation
4) Tie-In Arrangements
Antitrust Violation Penalties
up to $350K and 3 years
Corps up to $10 million per offense
Clayton Antitrust Act 1914
Interstate trade not covered under Sheran Act
Clayton Antitrust Act prohibits
Individuals from serving as directors at competing companies
Clayton Antitrust Act allows private individuals to…
sue violaters up to 3X the damages incurred plus fees
Federal Trade Commission has the power to…
judge whether practices are unfair
How was the FTC formed
Act of congress in 1914
Tie In Arrangement
Requires the buyer to agree to something in exchange for the sale
What can broker’s discuss about commission
1) Split between co-op brokers
2) talk to affiliated licensees or potential employees
The unreasonable restriction of business activities that results from conspiracy among members of a trade
Restraint of trade
Criminal Antitrust Penalty Act increased max criminal penalty for individuals to ____
$1 million
