Sherman Antitrust Act Flashcards
What is Sherman Antitrust Act?
Landmark federal act passed by Congress in 1890. The corn principle is to ensure healthy and fair free-market competition
What are the 5 different types of antitrust violations?
Price-fixing, group boycotting, market allocation, and tie-in agreements.
What is price fixing?
Practice of setting prices for products or services, rather than letting competition in the open market establish those prices. (Ex. when competing brokers agree to set a standard price for sales commissions, fees, or management rates.
What is group boycotting?
Occurs when a group of competitors collectively agree not to do business with third party in order to eliminate competition.
What is market allocation?
Allocations of customers or markets occurs when there’s an agreement between brokers to divide their markets or allocate customers to avoid competing for each other’s business.
What is tie-in arrangements?
Agreement to sell one product but only on the condition that the buyer also purchases a different product or service is called a tie-in arrangement because you have “tied” the purchase of one thing with the purchase of another.
