Antitrust Laws Homework Answers
Interested to know about antitrust law? Then you have come to the right place
Antitrust laws homework answers which are also known as competition laws are effigy which is established by the government of U.S. in order to save the consumers from despoiling and ensures that fair competition exists in an open market economy. It is applied to huge range of questionable business enterprises which includes:
- Market allocation â€“
Letâ€™s take an example, if my company functions in the northeast and your company functions in southeast. If you donâ€™t agree to stay in my territory, then i wonâ€™t enter into your territory. And moreover, doing business requires huge amount of money. And as a result start-ups donâ€™t have any opportunity of competing.
- Bid rigging â€“
In an industry, there are three companies and all of the three companies have decided to silently function as a corporation. Company 1 will acquire victory in the current auction, as long as it will allow the company 2 to win the auction and thereafter company 3 to win. All of the three companiesâ€™ play this game in order to keep the current market share and the price and thereby to prohibit competition.
- Price fixing â€“
Suppose, there are only two companies. My company and your company, and our goods and products are so much alike that the consumers or the buyers are indifferent between the two companies except the price. So, to get rid of price war, we sell our goods and products at the equal price in order to maintain a margin.
Companies that have been targeted for antitrust laws in the 21st century
Lot of well-known companies have been targeted in the 21st century for possible antitrust action. Antitrust laws homework answers apply to a wide variety of businesses and are meant to prohibit the restraint of business through practices like, price fixing predatory practices which results in the production of monopolies and merges among business organisations that reduce the competitions in the market.
Some of the major business associations that have made headlines for antitrust action in the year 2015 consist of Sysco, U.S. foods, American express, Adobe and Intel. Apple and Google are also included.
Antitrust laws homework answers practices by many business associations have been monitored since the Sherman antitrust act was accomplished in the year 1890. It was the foremost antitrust law and was passed by Congress. When this act was first created, many companies were targeted along with American railway union and northern securities company.
The antitrust laws homework answers boycott unlawful business activities in order to arrive at a conclusion as well as to find out what are not legal depending on the matters of each and every case. Over more than many dotages, the same primary aim of the antitrust laws homework answers is to safe the methods of contest for the benefits or profits of the consumers or the buyers, making sure that there are powerful allurement for business to function effectively and efficiently, keep the quality up and the prices down.
The other two confederate antitrust laws homework answers are:
- The Clayton act
- The federal trade commission act
- The Clayton act â€“
It is the civil effigy that is carrying no criminal penalties that prevent in-corporations or acquisitions that are more or less likely to lessen competition. In this act, the government challenges those in-corporations that are more or less likely to increase the prices of their goods and products to the buyers. This act also prevents other corporation practices that may ruin competition under any situation.
- The federal trade commission act â€“
This act prevents methods of competition that is illegal or unfair in marketplaces, but having no criminal penalties. This act also invented the federal trade commission.
Overview of the core federal antitrust laws homework answers
The outlaws of the Sherman act states that all the contract, combination or conspiracy in restraint of trade to monopolise. The penalties for breaking this law can be very severe. It compels criminal penalties taking away millions of dollars from corporations as well as from individuals along with 10 years of imprisonment.
Things which are told by the Supreme Court are that all the infractions of the Sherman act also break the federal trade commission (FTC) act. Technically, FTC doesnâ€™t administer Sherman act but, it brings cases under the federal trade commission (FTC) act which is not in favour of the exact types of the activities or the processes that breaks the Sherman act.
The Clayton act only addresses some specific activities which Sherman act doesnâ€™t clearly prevent like merges and activities like one single individual is told to build decisions and announcements for multiple corporations. 7th section of this law prevents merges or accretion where the result tends to develop a monopoly.
Guide to antitrust laws homework answers
Belligerent competition among sellers in a market place gives buyers: Individuals and the business, the profits of low prices, high-quality goods and products and services as well as high innovation. The FTCâ€™s Bureau of competition enforces the antitrust laws for the good and betterment of the buyers.
Business decisions, which involve prices, terms and conditions of the sales, contracts with the customers and the suppliers have frequent implications under the antitrust laws homework answers. These laws are intricate and violations can take place which leads to penalties. Thus, it is very important to be aware and guard against violations.