Violations of antitrust law are either per se violations or rule of reason violations. What are the differences between these two types of violations? Give examples of each.
What will be an ideal response?
A per se violation is a violation that is automatically illegal. It is irrelevant what the effect of the given conduct is on competition; the conduct, in and of itself, is illegal. Defendants are subject to both criminal and civil penalties. The Justice Department has sought criminal sanctions against per se violators. Examples would include price-fixing, bid-rigging, or an agreement by competitors to divide their market among themselves.?A rule of reason violation will be illegal only if it results in harm to competition. Such violations are viewed on a case-by-case basis. Examples of rule of reason situations would include refusal to deal arrangements and reciprocal dealing agreements.
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The most common type of joint venture is:
A. international joint ventures. B. between two or more private sector companies. C. an industry-university agreement. D. created for cooperative research.
The distribution of a stock dividend ________.
A) decreases both assets and liabilities B) decreases assets and increase liabilities C) effects only stockholder's equity accounts D) increases both dividends payable and cash
The cash flow from operations section shows an addition for the increase in the current asset accounts in an amount equal to the firm's expenditure to acquire a derivative
Indicate whether the statement is true or false
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10) $160,000 Direct materials and direct labor$96,000 Overhead (20% variable) 16,000 Selling and administrative expenses (all fixed) 32,000 (144,000) Operating income $16,000 A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,000 units at $7.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and selling and administrative costs by $300. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
A. Increase by $4,300. B. Decrease by $6,000. C. Increase by $30,000. D. Increase by $5,200. E. Increase by $6,000.