ACCT 315 CH 37

  1. Common law actions intended to:
    • limit restraints on trade
    • regulate economic competition
  2. Sherman Antitrust Act: main provisions contained in
    sections 1 & 2

    they define monopolies
  3. Section 1 regulates _____ and ______ restraints
    • horizontal
    • verticle
  4. Monopoly sells at least ____ % of goods and services
  5. monopolies dictate _____, ______, or both
    • price
    • quantity
  6. Per se violation
    • price fixing, violates law
    • blatent and substantially anti competitive
  7. rule of reason
    courts use less restricting means test

    to see if there was another way to do it
  8. group boycotts
    two or more groups agree to not deal with another person/group

    illegal per se
  9. occurs when competitors in the same market agree that each will have exclusive rights to operate in a particular geographic area
    horizontal market divisions

    (illegal per se)
  10. anticompetitive agreements imposed by sellers upon buyers that may include affiliates
    vertical restraints

    (illegal per se)
  11. manufacturer institutes restrictions on sellers territoy
    territorial customer restrictions

    (judged under rule of reason)
  12. manufacturer specifies rather than suggest price to sell
    resale price maintenance agreements

    (illegal per se)

    (manufacturer can put a MAXIMUM price ceiling
  13. Section 2 of Sherman Antitrust Act
    • monopolization and attempts to monopolize
    • predatory pricing
  14. predatory pricing
    • selling so low, drives competitor out of market
    • cant sell below cost of production to drive out competitors
  15. 4 areas covered by the Clayton Act
    • price discrimination
    • exclusionary practices
    • mergers
    • interlocking directorates
  16. seller forbids a buyer to purchase products from sellers competitors
    exclusive dealings contracts
  17. tying arrangements
    sale to which you must purchase another sale from company
  18. horizontal merger
    2 firms, same product/geographic market
  19. vertical merger
    firms merge at different levels in production and distribution chain
  20. interlocking directorates
    cannot serve simultaneously on 2 boards of directorates of 2 or more competing companies simultaneously
  21. Exemptions from antitrust laws
    (know at least 4)
    • labor
    • agriculture & fisheries
    • insurance
    • foreign trade
    • professional baseball
    • cooperative research and production
    • joint efforts and business persons to obtain legislative or executive action
  22. acts even outside the U.S. which effects U.S. commerce
    extraterritorial application
Card Set
ACCT 315 CH 37
sherman antitrust act