Anti-Trust Laws Essay

1005 Words Nov 1st, 2012 5 Pages
Abstract
Anti-trust laws were created to stop businesses that are to big from blocking the competition and abusing their power over other businesses.

Example 1
Why would the drug maker want to stymie generic competition? Explain. There is one major reason that any pharmaceutical company would attempt to stymie generic competition of any loss of their revenues’. Generic brands of drugs are normally provides the exact same level of benefits just at a much lower cost. The drug makers would defiantly lose millions of dollars by allowing a generic copy of their drug to be sold. The second reason would be the cost of making the drug along with advertising and marketing it as well would cost thousands of dollars. Along with the cost
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What are the possible ethical dilemmas present in this example? There could be a few different possible ethical dilemmas; one of those possibilities would be the result in one of the major pharmaceutical company use their power to have full access to the larger stores to buy off their suppliers of key drug ingredients. Ethical dilemma number two is the major companies use their access on marking and advertising to cause some distrust in any of the generic competitor’s product. The major company will say that the generic product isn’t of the same quality as their name brand drug. This way the consumer will only want the name brand over any other brand out there. The tired would be that any major pharmaceutical may use the capital to buy off the retailers from selling any of the generic versions of their medications. This means that they would be blocking the smaller generic companies from selling to all the major pharmacies.
This could cause a lot of down fall with many different pharmacies and unhappy people that live on a small or tight budget. Many people on Medicare can’t get the name brand medication they have to buy the generic brand; this means without generic brand they will have to go without.
Example 2 Why do you think consumer advocates have expressed concern over such merger possibilities? One of the

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