Power to Regulate Business
Under this power, states able to regulate all aspects of business as long as it is not unreasonable.
What are police powers?
Short statements that have control over monopolistic behavior.
This occurs when a seller charges different prices to different buyers for "commodities of like grade and quality".
What is price discrimination?
This is three time the damages actually sustained.
What are treble damages?
This is passed when the free enterprise system fails to control abuse.
What is a regulation?
There are restraints among competitors and throughout the supply chain.
What are horizontal restraints and vertical restraints of trade?
When there is an agreement made to set a certain price, whether it be high or low, among competitors.
What is horizontal price-fixing?
Price discrimination is accepted, but only when one or all of these six things occur.
What is a difference in grade, quality, or quantity; the cost of transportation involved in performing the contract; a good-faith effort to meed competition; differences in methods or quantities, that is, marginal cost differences; deterioration of goods; or a close-out sale of a particular line of goods.
When a violation to either of the two Sherman Acts occurs these are the punishments.
What is a fine or imprisonment?
This focuses on horizontal and vertical forms of anticompetitive behavior.
What is the Sherman Act?
Statutes that covers a multitude of anticompetitive behavior by competitors.
What are the Sherman Act, the Clayton Act, the Robinson-Patman Act, and the Federal Trade Commission Act?
The ability for a firm to have control over price and to exclude competition from their market.
What is market power?
This is NOT a violation of the antitrust law.
This is the maximum fine for a corporation when they violate the Sherman Act.
What is $100 million?
This prohibits mergers or the creation of a monopoly.
This occurs when competitors make entry to a market difficult or control prices.
What is the antitrust law steps in?
This can be done with good intentions, but in the eye's of the law it is still illegal.
What is boycotting?
This happens when a seller forces a buyer into purchasing another product that they do not want in order to make the purchase of the initial product.
What is tying?
This is the maximum punishment for a natural person when they violate the Sherman Act.
What is $1,000,000 or 10 years of prison or both?
This is prohibited between buyers when this can lead to a monopoly being formed or lead to there being less competition.
What is price descrimination?
These have statutes and regulations against unfair methods of competition.
What are each of the states and the federal government?
This must be done before two large companies make the decision to merge in order to avoid loss.
What is writing a notice to the FTC and head of the Antitrust Division of the Department of Justice?
This happens when firms have a buyer and seller relationship.
What is a vertical merger?
There is a possibility that a state could bring this type of a suit if many buyers were having to pay higher prices resulting in a violation of the antitrust law.
This is not illegal per se if the control is for purposes of providing customer service.
What is resale price maintenance?