Business Law - Chapter 22

  1. What are the may provisions of the Sherman Antitrust Act (1890)
    • Section 1: Prohibits contracts, combinations, and conspiracies in restraint of trade
    • Section 2: Prohibits monopolies and attempts to monopolize
  2. What is an example of Horizontal restraint (of trade) and Vertical restraint (of trade)
    • Horizontal: price-fixing agreements, group boycotts, horizontal market division, and trade association agreement
    • Vertical: territorial or customer restrictions, resale price maintenance agreement, refusals to deal
  3. What activities do the Sherman Act apply to
    activities that have a significant impact on interstate commerce
  4. What is the per se rule and the rule of reason under the Sherman Antitrust Act
    • Per se rule: applies to restrains on trade that are so inherently anti competitive that they cannot be justified and are deemed illegal as a matter of law
    • Rule of reason: applied when an anti competitive agreement may be justified by legitimate benefits. Under the rule of reason, the lawfulness of a trade restraint will be determined by the purpose and effects of the restraint.
  5. What does the Clayton Act do
    aimed at specific anti competitive or monopolistic practices that the Sherman Act did not cover
  6. What is Section 2 of the Clayton Act
    prohibits a seller engaged in interstate commerce from price discrimination that substantially lessens competition
  7. What is Section 3 of the Clayton Act
    Prohibits exclusionary practices, such as exclusive-dealing contracts and tying arrangements, when the effect may be to substantially lessen competiion
  8. What is Section 7 lf the Clayton Act
    Prohibits mergers when the effect may be to substantially lessen competition or to tend to create a monopoly
  9. What is section 8 of the Clayton Act
    Prohibits interlocking directorates
  10. Who enforces the federal antitrust laws
    • US department of justice
    • Federal Trade Commission
Card Set
Business Law - Chapter 22
Chapter 22 - Antitrust law ans promoting competition