Template_Example_1 - BMAL 560 Name John Doe Class BMAL 560 Section D01 Summer 2013 Critical Analysis Topic The Impact of Antitrust on Business PRINCIPLE

Template_Example_1 - BMAL 560 Name John Doe Class BMAL 560...

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BMAL 560 Name: John Doe Class: BMAL 560 Section: D01 Summer 2013 Critical Analysis Topic: The Impact of Antitrust on Business PRINCIPLE: Defined as laws that promote competition and prevent trusts, monopolies, or other business combinations that restrain trade (Graham, Baxter, & Davis, 2003) Designed to strengthen and maintain fair competition in the economy Legislation to control monopolies and restrictive practices in favor of competition Prevents monopoly, prohibits anti-competitive behavior, and unfair and deceptive business practices Fosters competition and protects consumers (Lawrence, Weber, & Post, 2005, p.188) PRACTICE: Antitrust or competition law is a generally accepted practice in the U.S. and other developed nations Opinions vary on the effectiveness of antitrust laws due to vagueness in legislation Antitrust has become a standard of business operations throughout the world Derived from U.S. law originally structured to combat business trusts, commonly known as cartels Viewed as an alternative to regulation PARTICULARS: Antitrust law originated in reaction to a public outcry over trusts – corporate monopolies at the turn of the twentieth century (1890) Protect and preserve economic competition Prohibit deceptive and unfair business practices Protect small businesses from economic pressures exerted by big business competition Preserve values and customs of rural America (Lawrence, Weber, & Post, 2005, p.192-193) Five (5) major issues of antitrust policy (Meier et al, 1998, p.75-108) o Monopolies and trusts o Collusive behavior o Mergers o Price discrimination o Exclusionary practices Prohibited activities include (Antitrust Resource Manual, n.d., n.p.) o Bid rigging; form of price fixing and market allocation Page 1 of 8
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BMAL 560 o Predatory pricing; practice of selling a products at low prices with intent of driving competitors out of the market, creates a barrier to market entry o Price fixing; agreement between business competitors regarding pricing o Tying; practice of making sale of one good conditional on purchase of another o Vendor lock-in; situation in which a customer is dependent on a vendor o Geographic allocation; agreement between competitors not to compete within territories o Walker process fraud; illegal monopolization through maintenance and enforcement of a patent obtained via fraud PERSONS: Champions of Antitrust: (Werden, 1992) o Senator John Sherman (Ohio); sponsored legislation – led to Sherman Antitrust Act o Congressman Henry De Lamar Clayton (Alabama); sponsored legislation – led to Clayton Antitrust Act, also known as the Antimerger Act o Senator Joseph Robinson (Arkansas) and Congressman John Wright Patman (Texas); sponsored legislation – led to Robinson-Patman Act o Congressman Emanuel Celler (New York) and Senator Carey Kefauver (Tennessee); sponsored legislation – led to Celler-Kefauver Act o Senator Philip Hart (Michigan), Senator Hugh Scott (Pennsylvania), and Congressman
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  • Summer '14
  • antitrust laws, Sherman Antitrust Act, antitrust law

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