Price Fixing

Question 1

U.S. v. Socony-Vacuum

Answer 1

Rule: reaches more than monopoly power. Any combination which tampers with price structures is engaged in an unlawful activity. (p.197).

Purpose OR Effect of raising or depressing prices is illegal per se and violation of § 1

Question 2

Parker v. Brown

Answer 2

Governments may fix prices because they are exempt from the Sherman Act as they are not “corporations or persons”

Question 3

Noerr-Penning

Answer 3

Antitrust law is not as important as democracy and free speech – if you accessing a political process or bringing a lawsuit, your motives and your purpose doesn’t matter.
BUT
“Mere Sham” exception

Question 4

Kiefer-Stewart v. Seagram & Sons

Answer 4

Setting maximum prices, no less than those to fix minimum prices, cripples the freedom of traders and thereby restrains their ability to sell in accordance with their own judgment.

Question 5

U.S. v. Container Corp. of America

Answer 5

1. Price information sharing between competitors is per se illegal, because price is too critical, too sensitive a control to allow it to be used even in an informal manner to restrain competition.
2. Makes the customer an adversary
3. Inference of price fixing agreement in absence of express agreement.