BSTAT 3310 Chapter 20

what the Sherman Act prohibits

contracts and combinations in restraint of trade are illegal

what the primary intention of the Clayton Act is

companies can't merge if it substantially lessens competition

the remedies available for antitrust lawsuits

Monetary damages

Restrain a company or individuals from certain conduct

Force a company to sell part of its assets (break up the company)

Force a company to let others use its patients of facilities (licensing)

Cancel or modify exiting business contracts

the definition of the per se rule

means that certain business agreements or activities automatically are illegal if found to exist

the definition of the rule of reason

means that the court looks at the fact surrounding business practices before deciding whether it helps or hurts competition

Antitrust law does not stop

a company from getting larger or doing more of its processes in-house

what law the government used to break-up the Standard Oil Trust

the government relied on the Sherman act to enforce break up of the trust

U.S. v. Baker Hughes

Propose merger should not be stop because sophisticated buyers would ensure competitive prices

what a horizontal restraint of trade is

anticompetitive action by businesses at the same level of operation. Rival firms that come together by agreement in an attempt to restrain trade by restricting output and raising prices is called a cartel.

U.S. v. Trenton Potteries

Price fixing is Per Se illegal

how the Supreme Court used the rule of reason to determine that BMI and ASCAP setting blanket licensing fees for music is allowed

Since there is no other way for the market for music licenses to work, this price fixing is not illegal.

Todd v. Exxon Corp

A court is more likely to approve data exchange if the information is made public

FTC v. Indiana Federation of Dentists

the dentist couldn't band together to conspire a restraint of trade against the insurance companies

Leegin Creative Leather Products v. PSKS

To the extent a vertical agreement setting minimum resale prices is entered upon to facilitate a ... cartel, it would need to be held unlawful under the rule of reason....

U.S. Steel Corp. v. Fortner Enterprises

there is no illegal to tie the sale of the home because there was no monopoly involved.

what types of boycotts are prohibited under the Sherman Act

The Supreme Court has made it clear that when horizontal competitors use a boycott to force a change in the nature of a vertical relationship, there is a per se violation of the law.

what predatory pricing is

in antitrust law, pricing below an accepted measure of cost (such as average variable cost) to drive competitors from the market in the short run to reduce competition in the long run

Spartan Concrete Products, LLC v. Argos USVI, Corp

Argos wasn't liable because Spartan could not show antitrust injury merely by its closure on St. Thomas