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17 Cards in this Set
- Front
- Back
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per se analysis
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when a restraint reveals a "predictable and pernicious anticompetitive effect." Such a restraint is presumed to violate section 1 and illegality follows regardless of procompetitive effects or motives.
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rule of reason analysis
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a fact-intensive inquiry whereby an agreement or restraint is deemed unlawful only if it causes an anticompetitive injury that outweighs procompetitive effects.
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what does the court consider when using "rule of reason analysis?"
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the degree of collusion associated with the restraint as well as the restraint's rationales, history, and impact on the relevant market.
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joint venture
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associations of "two or more persons formed to carry out a single business enterprise for profit for [*738] which purpose they combine their property, money, effects, skill, and knowledge.
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what are some examples of joint ventures?
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professional associations, stock exchanges, and credit card networks.
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non statutory labor exemption
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exempts collectively bargained restraints from section 1 if they primarily affect "mandatory subjects of bargaining" - namely, in the professional sports context, players' wages, hours, and other employment conditions.
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single entity defense
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distinct entities that possess a shared corporate consciousness, meaning they act, behave, and choose as one and thus their collaborations do not deprive the market of any independent sources of economic power.
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Copperweld Corp. v. Independence Tube Corp
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SC deemed a parent corporation and its wholly owned subsidiary constitutive of a single entity. As a single entity, "they" - the corporation and its wholly owned subsidiary - act with a "complete unity of interest":
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how does the Court distinguish between wholly owned subsidiary and joint venture?
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"unilateral" rather than "concerted," a wholly owned subsidiary only has one parent entity, whose interests the subsidiary exclusively serves, joint ventures, involve multiple participants that engage in a collaborative effort for a particular goal
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Fraser v. MLS
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the court characterized the MLS as "a hybrid arrangement, between a single company ... and a cooperative arrangement between existing competitors." deemed subject to section 1 & no single entity status
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Policy behind non statutory labor exemption
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The idea is that by allowing unionization we will protect workers from the advantaged bargaining position of their employer. The non statutory labor exemption protects agreements even if anticompetitive between players and managers. As a general matter, antitrust takes a back seat to labor law as long as certain conditions are met.
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Under the three part test in Mackey, the exemption will apply when
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1) the restraint on trade affects only the parties to the collective bargaining, (2) the restraint is a mandatory subject of collective bargaining, and (3) the agreement is a product of a bona fide, arm’s length negotiation.
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for purposes of the labor exemption, what are mandatory subjects of collective bargaining?
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wages, hours, and working conditions
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Anti-competitive effects
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Anticompetitive effects are usually measured by a reduction in output and an increase in prices in the relevant market. (Bd. Of Regents) anticompetitive effects have also been described in terms of decreased efficiency in the marketplace which negatively impacts consumers. (Sullivan)
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How long does the labor exemption hold?
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as long as there is a possibility that the labor relationship will continue so seems to be as long as the union exists (Powell)
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procompetitive justifications for league relocation restrictions
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1. league interest in locating franchises where people will actually show up
2. frequent movement may affect fan loyalty 3. interest in creating geographic diversity |
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elements of the antitrust essay
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1. do any exemptions apply
a. Baseball, Labor 2. Is there concerted effort (single entity arguments) 3. is the restraint commercial 4. Rule of Analysis a. per se, rule of reason, quick look 5. rule of reason analysis a. market definition, anticompetitive effects b. procompetitive justifications c. less restrictive means conclusion |
