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Chapter 47 - Antitrust LawChapter 47 - Antitrust LawCHAPTER OVERVIEWAntitrust laws are important in a business setting because they govern the ways in which businesses may interact. As future business managers, your students should know what behaviors are prohibited by the antitrust laws. Also, they should be aware of the way in which the courts enforce the statutes.You might want to begin by asking students to read the chapter and reply to the review and case questions at the end of the chapter. Focus on the similarities and differences in the different antitrust laws and how the courts enforce the laws. As an in class activity, you can discuss the Microsoft case and in what ramifications the court's decision will have on future antitrust cases. As an in-class activity, focus on the “Intel” article in the “Teaching Skills/Ideas” section of the manual. This recent article brings antitrust law to life, and shows students why this area of law matters.LEARNING OBJECTIVESAfter reading this chapter, students will be able to answer the following questions: 1.What is the rationale for antitrust law?2.What is the Sherman Act?3.What is explored in Section 1 of the Sherman Act?4.What is explored in Section 2 of the Sherman Act?5.What is the Clayton Act?6.What is the Federal Trade Commission Act?
Chapter 47 - Antitrust LawSherman Act—e.g., competitors cannot fix prices, restrict output, or exclude rival companies.The Sherman Act applies to business practices that restrain trade or commerce among several US states or other nations.To violate the Sherman Act, a business must directly interfere with the flow of goods.What is explored in Section 1 of the Sherman Act?Section I of the Sherman Act focuses on combinations, contracts, or conspiracies that restraint trade.Consumers are harmed if companies are permitted to join to attain increased market power.Rule of reason analysis—inquires into a company’s competitive effects on other businesses.oConsiders: the nature and purpose of the restraint on trade, the scope of the restraint, the effect of the restraint on business and competition, the intent of the restraint.Per se violations—