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Flashcards in Gov Regulation of Business Deck (14)
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1

Sherman Act of 1890
(Anti-Trust)

One of the first national laws designed to regulate competition. Meant to prevent extreme concentrations of economic power.

2

Chicago School

Argued that the market should decide the most efficient size for each industry. "Has competition been harmed?"

3

Post Chicago School

Competition alone may not be enough to protect consumers.

4

Clayton Act of 1914

Purpose was to clarify the earlier Sherman Act

5

Robinson-Patman Act of 1936

An amendment to the Clayton Act.

6

Per se violation

Automatic. Defendants cannot defend themselves by saying "The impact was so bad.." or "no one was hurt". Criminal and civil penalties

7

Rule of Reason Violation

Are illegal only if they have an anticompetitive impact. Traditionally not criminal penalties

8

Cooperative Strategies

Allow companies to work together to their mutual advantage

9

Coop - Horizontal Agreements

Among competitors. Agreement between Levi Strauss and Wrangler

10

Coop - Vertical Agreements

Among participants at different stages of the production process. Agreement between Levi Strauss and Macy's

11

Coop - Mergers and Joint Ventures

Among competitors. Go beyond simple agreements to combine forces more permanently

12

Market Division

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

13

Bidrigging

Per se violation. Competitors eliminate price competition by agreeing on who will submit the lowest bid.

14

Price Fixing

Prices should be set by markets, not by competitors or judges.