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14 Cards in this Set
- Front
- Back
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Per Seviolations and the Rule of Reason. Whichactions are which? |
Per Seviolations--agreements/actions that are so overtly anticompetitive that theyare automatically (per se) a violation of the law. Rule ofReason--If it isn’t a per se violation, it is a rule of reason analysis. Courts look at and consider a variety offactors to determine if there is a violation. Examine the purpose of the agreement, the power of the parties to theagreement, the effect on trade/competition, ETC |
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Horizontal Restraints of Trade |
Agreements between competitors in the same marketthat restrain competition. |
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Price Fixing |
Horizontal Restraint Any agreement between competitors to fix pricesis a per se violation. This includes bidrigging, where firms essentially take turns winning bids, with the effect ofdriving up prices. |
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Horizontal Market Division |
Horizontal Market Division--an agreement between business rivals todivide a market by customers or by territory. This is a per se violation. |
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Group Boycotts |
anagreement by two or more sellers to refuse to deal with a particular company orindividual. It is a per se violation IFit is intended to get rid of competition or prevent the entry of new competitorsinto a market. |
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Mergers |
Clayton Act prohibits mergers that areANTICOMPETITIVE. For companies of anysignificant size, must apply to the Federal Trade Commission (FTC) ahead oftime to approve the merger |
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Vertical Restraints of Trade |
An agreement between firms at different levelsin the production and marketing/distribution process |
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Resale Price Maintenance RPM agreements |
Vertical agreement between manufacturer anddistributor/retailer wherein the manufacturer sets the retail prices of itsproducts. Typically this is a minimumprice issue, but could also be maximum price |
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Price Discrimination |
may occur when a seller charges different prices tocompetitive buyers for identical goods. Covered by Clayton Act and Robinson-Patman |
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Tying Arrangements |
wherea seller conditions the sale of product on the buyer’s agreement to purchaseanother product produced or distributed by the seller |
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Monopolization covered by |
Sherman Act, and Clayton Act |
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Monopolization--2 elements |
(a). Possession of monopoly power in the RELEVANTmarket and (b) willful acquisition or maintenance of the monopoly power |
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Predatory Pricing |
selling below cost of production to forcecompetitors out of the market, whereupon prices can then be raised to monopoly(i.e., high) levels. Has severalelements. |
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Predatory Pricing 3 elements |
Selling products below cost--What is cost? Not clear, but presumption that if adefendant is selling goods at below the average variable cost, there is apredatory intent Intent to put plaintiff out of business, or atleast out of the market. Can bedifficult to prove, save circumstantially. Can defendant recoup money lost in selling belowcosts? That is, will the defendant beable to earn enough profits after the competitor is forced out of the market tooffset the losses from below cost sales? If not, then it’s not |
