2 Flashcards
Resale price maintenance is an example of
Resale price maintenance agreements are a form of vertical price fixing because a manufacturer or wholesaler restricts the price that may be charged by a retailer. Such agreements are evaluated under the rule of reason.
In contesting the validity of a previously consummated vertical merger,
A vertical merger is between buyers and sellers, as opposed to competitors (called horizontal mergers). It will be attacked if entry of other firms into the market thereby becomes more difficult, or if it would make the company disproportionately large compared with competitors. A horizontal merger is presumed illegal with a smaller market share.
Generally, a disclosed principal will be liable to third parties for its agent’s unauthorized misrepresentations if the agent is an
The principal is liable for torts involving misrepresentations regardless of whether the agent is an employee or an independent contractor. The agent’s misrepresentation must be (1) fraudulent, (2) negligent, or (3) innocent but material and with all of the elements of fraud except intent. A tort involving misrepresentation is an an example of vicarious liability. An example of tortious misrepresentation by an agent-independent contractor is the sale by a homeowner through a real estate broker who made a material misrepresentation to make the sale. But the principal generally is not liable for the tortious acts of an independent contractor that involve physical acts.
The two major functions of the Federal Trade Commission are
The FTC Act of 1914 prohibits unfair methods of competition, and unfair or deceptive acts, in or affecting interstate commerce. The basic objectives are to initiate antitrust actions and protect consumers.
