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Discussion Board 2 - Comment #2

Discussion Board 2 - Comment #2 - Discussion Board 2 Case...

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Discussion Board 2: Case Problem 3 – Matsushita Electric Industrial Co., et al. v. Zenith Radio Corp. et al. Michele Holt Liberty University BUSI 561-C03: Legal Issues in Business Professor Dr. H. Harvey, Esq. March 1, 2012
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In light of these facts, what are the chances of successfully bringing an antitrust suit against these manufacturers? Assume there are no conflict-of-law or other procedural problems due to the manufacturers being in another country. After reviewing the case Matsushita Electric Industrial Co., LTD, et al. v. Zenith Radio Corp. et al., 75 U.S. 574 (1986), I believe that there is a successfully chance to bring an antitrust suit against the Japanese manufacturers. Section 1 of the Sherman Act states that every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States or with foreign nations, is considered illegal (Bagley, 2010, p. 644). In the event the Japanese Manufactures formed an association and are discussing market conditions in the U.S., import restrictions, surcharges, and simplification of export procedures, they are indeed breaking antitrust laws. Violations of Section 1 consist of: (1) there is a contract, combination, or conspiracy among separate entities; (2) it unreasonably restrains trade; (3) it affects interstate or foreign commerce; and (4) it causes an antitrust injury (Bagley, 2010, p. 644). What if, instead of discussing the topics listed above, the manufacturers discussed the details of individual sales, production, inventories, current price lists and future price trends? In the event the Japanese Manufactures were discussing the details of the U.S. Manufactures’ individual sales, production, inventories, current price lists and future trends, within in their trade or professional association, the U.S. Manufactures would have a very good chance at bring an antitrust lawsuit against them. Trade professional associations often release information among their members, but the association agreements rarely states the goals that violate the Sherman Act, so courts will consider the structure of the market, and the type of
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