Ch. 16 - Chapter 16 - Antitrust Laws Regulating Competition...

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Chapter 16 - Antitrust Laws – Regulating Competition ANSWERS TO REVIEW QUESTIONS AND PROBLEMS - CHAPTER 16 INTRODUCTION 1. Historical Development (a) The Sherman Act declares illegal restraints of trades and monopolies or attempts to monopolize. (b) The Justice Department’s Antitrust Enforcement Division and the Federal Trade Commission. (c) State attorneys general are authorized to bring civil actions for damages and injunctive relief. (d) Yes, usually through triple damages actions and for injunctive relief. THE SHERMAN ACT 2. Restraint of Trade Yes. These agreements among the orthodontists likely would be found to be unreasonable restraints of competitive pricing. In fact, at least the agreement to charge the $200 initial fee is so unreasonable as to be illegal per se. 3. Monopoly Yes. Grinnell has monopoly power in the market with 87 percent control if the proper market was chosen. The geographic market is the nation. The product market is central station hazard-detecting systems. The court must consider whether there are "substitutes" that should be considered in determination of market share. None of the substitutes for the accredited central station service meet the interchangeability test. The market power was achieved by unlawful and exclusionary practices that establish the violation. United States v. Grinnell Corporation , 86 S.Ct. 1698 (1966). 4. Analysis in Antitrust Law (a) The actual language of the Sherman Act makes every agreement that restrains trade illegal. The rule-of-reason analysis clarifies that only unreasonable restraints are to be
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This note was uploaded on 09/21/2011 for the course LEGL 2700 taught by Professor Reed during the Spring '07 term at UGA.

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Ch. 16 - Chapter 16 - Antitrust Laws Regulating Competition...

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