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What are the issues with movie town operation

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Question: The Movie town Movie Theater Company operates movie theaters in 15 different towns throughout the Midwest, including Harborview, a small city of 250,000 people with a major state university. In Harborview, Movietown owns and operates five different movie theaters with a total of 38 screens. Movie town operates the only theaters in Harborview and the only ones within a 30-mile radius around the town. Movietown charges $6.00 for matinee movie times and $8.50 for evening movies. These prices are about 10 percent higher than the prices charged around most of the rest of the state. There are no discount ticket prices of any sort for senior citizens, students, or any other group. Most movie theaters around the rest of the state offer some, if not all, such special group discounts. Several other movie theater companies have sought to build movie theaters in Haborview over the last 10 years. Each of these efforts has failed. In addition, Movie town has actively lobbied town authorities to keep out any other movie theater companies.

a. What are the issues with Movie town's operation? Is there a possible case of monopoly here under federal law?

b. During discovery, what if any accounting records should be requested?

c. What other information would be needed?

d. What are the services that a forensic accounting expert witness might be asked to provide in connection with this dispute?

Reference no: EM131713488

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