Flashcards in Gov Regulation of Business Deck (14)
Sherman Act of 1890
One of the first national laws designed to regulate competition. Meant to prevent extreme concentrations of economic power.
Argued that the market should decide the most efficient size for each industry. "Has competition been harmed?"
Post Chicago School
Competition alone may not be enough to protect consumers.
Clayton Act of 1914
Purpose was to clarify the earlier Sherman Act
Robinson-Patman Act of 1936
An amendment to the Clayton Act.
Per se violation
Automatic. Defendants cannot defend themselves by saying "The impact was so bad.." or "no one was hurt". Criminal and civil penalties
Rule of Reason Violation
Are illegal only if they have an anticompetitive impact. Traditionally not criminal penalties
Allow companies to work together to their mutual advantage
Coop - Horizontal Agreements
Among competitors. Agreement between Levi Strauss and Wrangler
Coop - Vertical Agreements
Among participants at different stages of the production process. Agreement between Levi Strauss and Macy's
Coop - Mergers and Joint Ventures
Among competitors. Go beyond simple agreements to combine forces more permanently
Any effort by a group of competitors to divide its market is a Per se violation of the Sherman Act. Stanford agreed to accept only students from west of Mississippi and the east to Yale
Per se violation. Competitors eliminate price competition by agreeing on who will submit the lowest bid.