Chapter 20

Know what the Sherman Act prohibits

prohibits you acting like a Monoploy

Know what the primary intention of the Clayton Act is.

limit anti competitive behaviors

Know the remedies available for antitrust lawsuits

injuctions, make a company divest themselves, be broken up, assets/copyright sold or given away

Know the definition of the per se rule.

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

Know the definition of the rule of reason

means that the court looks at the facts 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.

ie walmart

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

The Sherman Act

Know why the court in U.S. v. Baker Hughes let the merger go forward

the proposed merger should not be stopped because sophisticated buyers would ensure competitive prices

Know what a horizontal restraint of trade is.

price fixing

Know what the Supreme Court said about price fixing in U.S. v. Trenton Potteries

is per se illegal

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

price fixing for music licenses is legal using a rule of reason analysis because other wise the market could not function well

Know the holding of Todd v. Exxon Corp about data exchanges

a court is more likely to approve a data exchange when the information is made public

Know what the Supreme Court decided in FTC v. Indiana Federation of Dentists regarding dentists mutually agreeing to not submit X-Rays to insurance companies

Indiana dentists could not band together to conspire in restraint of trade against the insurance companies

Know the holding of Leegin Creative Leather Products v. PSKS

Vertical price restraints would be viewed under a rule of reason

Know what the court held in U.S. Steel Corp. v. Fortner Enterprises regarding a loan tied in to sales of the company’s products.

its not illegal to tie the sale of the homes with the financing because there was no monopoly power involved

Know what types of boycotts are prohibited under the Sherman Act

manufacturer or producer not selling to retailers for ant competitive reasons

Know what predatory pricing is.

offering lower prices to drive competitors out of the market

Know the holding from Spartan Concrete Products, LLC v. Argos USVI, Corp.

there was no violation as spartan was purchasing in bulk and argos losses came from their own buying strategy.