Ch. 26: Antitrust Law – No. 8
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
Exclusive-Dealing Contract: An agreement by which a
seller forbids a buyer from purchasing products from the
substantially lessen competition or would tend to create
monopoly power.
Tying Arrangement: An agreement between a buyer and a
service to buy additional products or services from the seller.
under Section 1 of the Sherman Act.
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
HORIZONTAL MERGERS
Horizontal Merger: A merger between two firms that are
Courts and antitrust regulators also consider
(1) the overall concentration in the relevant markets,
(2) the trend toward concentration in the relevant
markets,
Ch. 26: Antitrust Law – No. 10
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
VERTICAL MERGERS
The legality of a proposed vertical merger will typically
be determined by considering
(1) market concentration in both the “upstream” and
“downstream” markets,
(2) ease of entry into both markets, and
Ch. 26: Antitrust Law – No. 11
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
INTERLOCKING DIRECTORATES
ENFORCING ANTITRUST STATUTES
Enforcement Agencies: Federal antitrust laws are enforced
by the
been injured by the anti-competitive behavior of others may
recover privately under federal antitrust law if they can show:
(1) that the alleged antitrust violation either directly caused,
or was at least a substantial factor in causing, the injury
suffered, and
availability of treble damages to successful private
litigants – giving them more incentive to act as “private
attorneys general.”
Ch. 26: Antitrust Law – No. 13
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
ANTITRUST EXEMPTIONS
Labor Organizing: Labor unions may organize, bargain
collectively, and strike without violating antitrust law.
Agricultural and fishing cooperatives are allowed to
combine their efforts and set prices for their products.
Insurance companies that are subject to state regulation are
Professional baseball is, except with respect to free agency,
exempt from antitrust law.
Certain forms of cooperative research and production
business in accordance with clearly articulated state policy
and under the direct supervision of state regulators.
Ch. 26: Antitrust Law – No. 14
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
contract, combination, or conspiracy occurs outside the U.S.
U.S. courts have discretionary jurisdiction over alleged
antitrust violations occurring abroad, but affecting U.S.
interstate commerce, unless the activity constitutes a per
be enforced more aggressively by foreign governments,
agencies, and litigants than their U.S. counterparts.
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
HORIZONTAL MERGERS
Horizontal Merger: A merger between two firms that are
Courts and antitrust regulators also consider
(1) the overall concentration in the relevant markets,
(2) the trend toward concentration in the relevant
markets,
Ch. 26: Antitrust Law – No. 10
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
VERTICAL MERGERS
The legality of a proposed vertical merger will typically
be determined by considering
(1) market concentration in both the “upstream” and
“downstream” markets,
(2) ease of entry into both markets, and
Ch. 26: Antitrust Law – No. 11
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
INTERLOCKING DIRECTORATES
ENFORCING ANTITRUST STATUTES
Enforcement Agencies: Federal antitrust laws are enforced
by the
been injured by the anti-competitive behavior of others may
recover privately under federal antitrust law if they can show:
(1) that the alleged antitrust violation either directly caused,
or was at least a substantial factor in causing, the injury
suffered, and
availability of treble damages to successful private
litigants – giving them more incentive to act as “private
attorneys general.”
Ch. 26: Antitrust Law – No. 13
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
ANTITRUST EXEMPTIONS
Labor Organizing: Labor unions may organize, bargain
collectively, and strike without violating antitrust law.
Agricultural and fishing cooperatives are allowed to
combine their efforts and set prices for their products.
Insurance companies that are subject to state regulation are
Professional baseball is, except with respect to free agency,
exempt from antitrust law.
Certain forms of cooperative research and production
business in accordance with clearly articulated state policy
and under the direct supervision of state regulators.
Ch. 26: Antitrust Law – No. 14
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
contract, combination, or conspiracy occurs outside the U.S.
U.S. courts have discretionary jurisdiction over alleged
antitrust violations occurring abroad, but affecting U.S.
interstate commerce, unless the activity constitutes a per
be enforced more aggressively by foreign governments,
agencies, and litigants than their U.S. counterparts.