ANTITRUST - ANTITRUST CLAYTON ACT Introduction: The Act is...

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ANTITRUST CLAYTON ACT Introduction: The Act is aimed at specific monopolistic practices which tend to create a monopoly or substantially lessen competition. 1. Section 2 Robinson Patman Act – Applies to the sale of goods and deals with price discriminiation. 2. Section 3 – Prohibits exclusive dealing agreements & tying arrangements (buyers must take an undesired product with the desired one in a market that is controlled by seller – generally Illegal Per Se) May also be a violation of the Sherman Act 3. Section 7 – prohibits corporations from merging if it will lessen competition or tend to create a monopoly. Hart-Scott-Rodinc antitrust Improvement Act requires premerger DEFENSES AND EXEMPTIONS Defenses (from Sherman Act) A) Meeting the competition Defense – reducing the price in good faith to meet an equally low price of a competitor B) Cost – Justification – Lower price is based on cost savings, eg. Quantity discounts.
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ANTITRUST - ANTITRUST CLAYTON ACT Introduction: The Act is...

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