Resale price maintenance agreements, whether setting maximum or minimum prices, are
no longer per se violations of the Sherman Antitrust Act
; however, they are still subject to antitrust scrutiny under the rule of reason, which balances procompetitive effects with anticompetitive restraints.
Which would not be a violation of the Sherman Antitrust Act?
If a firm engages in conduct that has the effect of extending its monopoly power
, it does not violate the Sherman Act.
Which of the following is a violation of the Sherman Act?
The most common violations of the Sherman Act and the violations most likely to be prosecuted criminally are
price fixing, bid rigging, and market allocation among competitors
(commonly described as “horizontal agreements”).
Is price fixing a violation of the Sherman Act?
Under the law,
price-fixing and bid- rigging schemes are per se violations of the Sherman Act
.
Who has violated the Sherman Antitrust Act?
American Tobacco Co. (1911), which split the company into four. United States v. General Electric Co (1911), where
GE was judged to have violated the Sherman Anti-Trust Act, along with International General Electric, Philips, Sylvania, Tungsol, and Consolidated and Chicago Miniature
.
Which of the following is illegal under the Sherman Antitrust Act?
The Sherman Anti-Trust Act authorized the federal government to institute proceedings against trusts in order to dissolve them.
Any combination “in the form of trust or otherwise that was in restraint of trade or commerce among the several states, or with foreign nations”
was declared illegal.
Is resale price maintenance legal in the US?
Thus, from the 1975 enactment of the Consumer Goods Pricing Act to the 2007 Leegin decision, resale price maintenance was again
no longer legal
in the United States.
What is the law that makes it illegal to commit the act of monopolizing?
Section 2 of the Sherman Act
makes it unlawful for any person to “monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations . . . .”
What’s involved with the antitrust violation called market allocation?
cooperative setting of prices by competing firms, in violation of antitrust laws. Market allocation occurs when ?
competing businesses agree to divide up their market in some way, allocating certain products or customers or locations between them as their exclusive domains
. This also violates antitrust laws.
What was the biggest problem with the Sherman Antitrust Act?
Only
“unreasonable” restraint of trade through acquisitions, mergers, exclusionary tactics, and predatory pricing
constitute a violation of the Sherman Act. This interpretation allowed large firms considerably more latitude.
Which of the following is illegal under the Sherman Antitrust Act quizlet?
Which of the following is illegal under the Sherman Act?
Attempts to monopolize, price fixing, and formation of cartels
.
Why were so few violations of the Sherman Antitrust Act brought to court?
Why were so few violations of the Sherman Antitrust Act brought to court?
Court cases cost too much time and money
. Which of the following was the main “spoil” in the spoils system? In 1887, Congress passed which of the following pieces of legislation to regulate railroads?
Is price fixing per se illegal?
All vertical agreements are analyzed under the Rule of Reason. Horizontal agreements with the effect of raising, depressing, fixing, pegging, or stabilizing the price of a commodity in interstate or foreign commerce (price-fixing agreements) are illegal per se.
What is a per se violation?
In US law, the term illegal per se means that
the act is inherently illegal
. Thus, an act is illegal without extrinsic proof of any surrounding circumstances such as lack of scienter (knowledge) or other defenses. Acts are made illegal per se by statute, constitution or case law.
Which law protects US as consumers against price fixing?
WHAT IS
THE CONSUMER PROTECTION ACT
? The Consumer Protection Act, No. 68 of 2008 was signed on 24 April 2009.
What are some of the potential consequences of violating antitrust laws?
Individual violators can be fined up to $1 million and sentenced to up to 10 years in Federal prison for each offense, and corporations can be fined up to $100 million for each offense
. Under some circumstances, the maximum fines can go even higher than the Sherman Act maximums to twice the gain or loss involved.
What is an example of an antitrust violation?
The most common antitrust violations fall into two categories: (i)
Agreements to restrain competition
, and (ii) efforts to acquire a monopoly. In the case of a merger, a combination that would likely substantially reduce competition in a market would also violate antitrust laws.
What industries are exempt from antitrust laws?
For various reasons over time, certain industries and organized groups have been exempted from the operation of US antitrust laws. These include
organized labor, insurance companies, and baseball
.
When the effect of an antitrust violation is to raise prices?
When the effect of an antitrust violation is to raise prices:
damages are automatically considered doubled
.
Does resale price maintenance apply to services?
Absent a resale-price-maintenance agreement, the Supreme Court explained that
some discounting retailers can free ride on retailers that spend the money to furnish services
(and therefore must charge a higher price to pay for those services).
What is resale price maintenance What are the legal provisions for its regulation in India?
Definition. Resale Price Maintenance is defined under Section 3(4)(e) of the Act as “any agreement to sell goods on condition that the prices to be charged on the resale by the purchaser shall be the prices stipulated by the seller unless it is clearly stated that prices lower than those prices may be charged”.
What does a resale price maintenance agreement do?
An agreement between a supplier and its distributors that
limits the prices the distributors can charge customers for the supplier’s products
.
What section of the Sherman Act makes it illegal for sellers to agree to raise their prices?
Section 1
of the Sherman Act condemns any contracts, combinations, and conspiracies in restraint of trade, which includes vertical and horizontal price-fixing schemes. Horizontal price fixing involves competitors that agree to raise, lower or stabilize prices.
Is monopolizing illegal?
In United States antitrust law, monopolization is illegal monopoly behavior
. The main categories of prohibited behavior include exclusive dealing, price discrimination, refusing to supply an essential facility, product tying and predatory pricing.
What is the difference between the Sherman Act and the Clayton Act?
Whereas
the Sherman Act only declared monopoly illegal, the Clayton Act defined as illegal certain business practices that are conducive to the formation of monopolies or that result from them
.
