Federal Personal Property Laws

Question 1

Sherman Act (1890)

Answer 1

 Sec 1Prohibits conspiracies in restraint of trade (combined activity)
 Sec 2 Prohibits monopolies

Question 2

Clayton Act (1914)

Answer 2

 Sec 2 – prohibits price discrimination
 Sec 3 prohibits tying and exclusive dealing agreements (everyone and no one wants)
 Sec 7 forbids anticompetitive merges
 Sec 8 prohibits interlocking directorates among large corps. that compete with one another

Question 3

FTC - Federal Trade Commission Act (1914)

Answer 3

 Sec 5 – prohibits “unfair methods of competition”

Question 4

Robinson-Patman Act (1936)

Answer 4

 Sec 2 – further addresses price discrimination

Question 5

Conspiracies in Restraint of Trade

Answer 5

o KEY to violation: collusion
 Collusion is illegal ONLY if it “unreasonably” restricts competition
 IF primary purpose is to restrain trade, then likely illegal even is effect on competition is slight
 IF primary purpose is NOT to restrain trade, okay unless competition is substantially diminished
 Per se ILLEGAL:
• Price fixing
• Market division
• Boycotts

Question 6

Monopolization

Answer 6

o Overwhelming degree of market power enabling firm to control prices/exclude competition
o Can raise prices w/o losing customers
o Markets may be:
 Product markets (fasteners such as buttons, zippers, etc.)
 Geographic markets
o Intent:
 Typically inferred from conduct
• Predatory (below cost) pricing
• Non-price predation
o Tying up customers w/ long term contracts
o Take away key employees from small competitors
o Falsely disparage competitors’ products
o Sabotage

Question 7

Mergers

Answer 7

o Horizontal mergers between competitors; LIKELY to be illegal if market share exceeds 30%
o Vertical mergers between firms in a distribution chain; UNLIKELY to be illegal; UNLESS vertical market is already concentrated and both firms have large market shares
o Conglomerate mergers – not horizontal or vertical, probably okay (steel/ice cream company)

Question 8

Copyright

Answer 8

•	4 types of intellectual property:
o	1. Trademarks
o	2. Trade secrets
o	3. Copyrights
	Fixed in a tangible medium
	Creative 
	Original
	Life of author + 70 years
	For work for hire (musician does jingle) shorter of 95 years from date of publication OR 120 years from date of creation
	NO filing needed, but registering with US copyright office is good idea
o	4. Patents

Question 9

Patent

Answer 9

Government granted exclusive right to make, use, or sell an invention
_____-ABLE:
- Processes, machines, products
NOT ____ABLE:
- Printed matter, naturally occuring substances, ideas, scientific principles

e.g. of this: amazons “one-click” purchasing system

***ALL above are UTILITY ________

Question 10

Design Patents

Answer 10

for nonfunctionalornamental design elements in a functional product; a type of industrial design right.

granted to any person who has invented any new and nonobvious ornamental design for an article of manufacture.

The functional aspects of an invention are covered by a utility patent.

Question 11

Elements of patentability

Answer 11

• Involves patentable subject matter
• it is useful
• novel (NEW)
• nonobvious

Question 12

Patent Filing

Answer 12

Required with the U.S. PTO - Patent & Trademark Office

WITHIN 1 year after the invention creation
“first-to-file” rule

PROTECTION LASTS:
Utility - 20 years from date of filing
Design - 14 years from date of filing

Question 13

Money Laundering

Answer 13

The process by which one conceals the existence, illegal source, or illegal applicaiton of income, and disguises that income to make it appear legitimate; helps facilitate drug dealing, terrorism, income tax evasion, etc.

Question 14

Bank Seurities Act - 1970

Answer 14

Requires recordkeeping and reporting by bans/other financial institutions to trace the movement of currency in and out of the U.S or deposited into banks

BANKS MUST:

• Report cash transactions > $10,000
• Identify persons conducting all transactions
• Maintain a traceable paper trail

Question 15

31 U.S.C. Sec 5324

Answer 15

Prevents evasion by making it illegal to break large transactions into pieces smaller than 10k to evade reporting requirements

Question 16

Money Laundering Control Act - 1986

Answer 16

Primarily composed of 2 provisions:
1. 18 U.S.C. 1956 - prohibits transaction money laundering:
w/intent to promote unlawful activity, engage in violations of 7201, 7206(tax code), or attempt to conceal the nature, or avoid reporting requirements

Prohibits transportation money laundering: promoting illegal activity, transport illegal proceeds in attempt to hide, or “ to avoid reporting req.

2. 18 U.S.C. 1957 - addresses monetary transactions in criminally derived property over 10,000.

derived from unlawful activities such as drug dealing, gambling, mail/wire fraud, etc.