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10 Cards in this Set
- Front
- Back
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There are two antitrust law theories. What are they?
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Traditional
Chicago School |
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What is the traditional anti trust law theory?
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The traditional theory is the reality that large economic power leads to large political power.
Traditionalists did not want these dictating government and gaining power over politicians. |
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What is the Chicago School ant-trust law theory?
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The chicago school felt the only real purpose of anti trust laws is to protect the consumer (economically based)
They feel cheap prices benefit the consumer |
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This regulates any 1)contract, combination, or conspiracy that 2)has an unreasonable restraint on trade and 3) impacts interstate commerce
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Section 1 of the Sherman Act
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There are three tests to determine if an occurrence is a violation or unreasonable.
What are they and explain them. |
Per Se - Should be illegal by just existing
Rule of Reason - balancing / fairness test, intense examination of the impact, do benefits outweigh harms. -Purpose -Scope - Practical impact Quick look - Shift the burden to make companies prove that what they did was reasonable |
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There are two restraints. What are they and explain each.
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Horizontal Restraints - Two competitors in the same market make an agreement to restrain trade
Vertical Restraints - Two parties at different levels in the manufacturing and distribution process make an agreement that restrains trade |
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What are examples of horizontal restraints?
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Price Fixing
Bid Rigging Market Divisions |
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What are examples of vertical restraints?
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Territorial Restrictions
Resale Price Management |
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This is the prohibition against monopolies. It stresses that businesses can't use power to hurt competitors
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Section 2 of the Sherman Act
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The Clayton Act identifies the following four business practices not covered under the Sherman Act:
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Price Discrimination
Exclusionary practices Mergers Interlocking directorates |
