Discuss the validity and effect of each of the following:
a. Two manufacturers of the same product decide to allocate territories with one taking the southern states.
b. A labor union encourages its members and all consumers to boycott a product manufactured by a company that refuses to honor a union contract.
c. Betty's Bargain Department Store sells its products for 10% under the suggested retail price. One manufacturer tells the store it will not supply wholesale goods to it unless it charges at least the suggested retail price.
a . This is a horizontal market allocation. It is a per se violation of Section 1 of the Sherman Act.
b. This would be an illegal group boycott, except that it involves a labor union, and the Clayton Act exempts labor unions from all antitrust laws.
c. Retail price maintenance is a vertical form of price fixing. Until recently it was established that a manufacturer's agreement with retailers to set the minimum price the retailer can charge was a per se violation of the antitrust laws. However, in a 2007 U.S. Supreme Court case, the Court found vertical price restraints are to be judged by the rule of reason standard. This was a distinct departure from previous Supreme Court decisions involving similar fact situations.
You might also like to view...
Which of the following criteria relates to consumers seeing the brand association as personally relevant to them?
A) deliverability B) authenticity C) desirability D) differentiability E) feasibility
An unearned revenue is a liability
Indicate whether the statement is true or false
Ingratiation is related to which perceptual distortion?
What will be an ideal response?
The word group After we tallied the survey results and identified the primary causes of employee dissatisfaction contains ______. ?
A) ?one independent clause B) ?one dependent clause C) one independent clause and one dependent clause D) ?two independent clauses