Considered predatory pricing under the sherman act

Assignment Help Operation Management

Reference no: EM131272011

William Inglis & Sons is a family-owned wholesale bakery with production facilities in Stockton, California, that manufactured and distributed bread and rolls in northern California. ITT Continental is one of the nation’s largest wholesale bakeries and was a competitor of Inglis in the northern California market. Both Inglis and Continental sold their bread under a private label and an advertised label. Continental’s advertised bread was “Wonder” bread, whereas Inglis’s advertised bread was “Sunbeam.” The private label bread is sold at a lower price than the advertised brand, but the principal difference between the two was the profit. Inglis filed a complaint stating that Continental was selling its private label bread at below-cost prices in a predatory price scheme designed to drive Inglis out of the market. Inglis also said the lower price on private bread earned Continental more grocery-shelf space for its “Wonder” bread. Is such conduct illegal under the Sherman Act? Is predatory pricing per se violation? William Inglis v. ITT Continental Baking Co., 668 F.2d (9th Cir. 1980).

Could Continental’s conduct be considered predatory pricing under the Sherman Act? Why or why not?

Is predatory pricing a per se violation? (Support your answer).

(Remember not to look up the case or post any information from its case decision for this case. Answers these questions based upon what you’ve read in the text and then we’ll find out how we did at the end of the week. There aren’t any ‘wrong’ answers while we are learning the material.)

Reference no: EM131272011

Questions Cloud

List at least three methodologies : List at least three methodologies that you plan to use to control the deliverables on your project while maintaining costs and schedule.

The wall street journal : While the ability to think critically is, well, critical in the workplace, employers have long complained that many of the young college graduates they hire seem to lack this skill. Now, universities are trying to fix the problem before their grads e..

Key problems in maintaining a competitive advantage : Discuss the key problems in maintaining a competitive advantage in embryonic and growth industry environments. What are the dangers associated with being the leader in an industry.

The number one ethical concern in market research : What should we do if we find a piece of research that our boss wants to use to support their decision, but we have found it to be unethical in its approach? What do you see as the number one ethical concern in market research?

Considered predatory pricing under the sherman act : William Inglis & Sons is a family-owned wholesale bakery with production facilities in Stockton, California, that manufactured and distributed bread and rolls in northern California. ITT Continental is one of the nation’s largest wholesale bakeries a..

Not catching fish or targeted species-low volume of fish : Create a decision map (see figure 5.10 as an example) that considers value creation and support processes in your map. Include in your decision map the choices for each of your satisfiers and dissatisfies from the previous project. Not catching fish ..

What is largest component probability that can be achieved : A product engineer has developed the following equation for the cost of a system component: C = (10P)2, where C is the cost in dollars and P is the probability that the component will operate as expected. The system is composed of two identical compo..

What is after tax benefit of the risk management plan : A company's before tax profit could be 2 million with 70% probability or -1 million with 30% probability if no risk management strategy is used. With certain risk management strategy the company's before tax profit will be 1 million each year. What i..

Fine print on your credit card contracts : Disclosures are usually in the fine print that Will mentioned. Have (do) you read the "fine print" on your credit card contracts? Or your car loan? Or your student loans? Or your mortgage? If not, why not? If you haven’t, do so now. Have you ever (or..

User Account

All Pages