Antitrust laws, Financial Accounting

Assignment Help:

Antitrust Laws - Assignment Help

One of the foundations of business within the United States is the freedom to compete in the marketplace; however, certain laws have been created to ensure that the marketplace is free of unfair competition and unlawful monopolies. A monopoly exists when one company owns the entire market or nearly the entire market for a service or a product. There are some situations in which a company can defend against a claim of monopolization. These include cases in which the market is too small to have multiple competitors and cases in which the acquisition of another business was the result of insightful business practices and decisions. The mere fact that a monopoly exists does not make it unlawful-the way the monopoly is created impacts the legality and whether an antitrust action can be brought in court.

The federal government is authorized to enforce the federal antitrust laws that have been created. These laws are enforced by the Federal Trade Commission and also the Antitrust Division of the Department of Justice. Antitrust lawsuits can be filed by a private person or the government. Depending on the law violated, damages can be in the form of civil damages (monetary relief), criminal sanctions, or equitable relief such as an injunction.

The Sherman Antitrust Act was enacted in 1980. This was created to address anticompetitive actions and prohibit the restraint of trade and was applicable to actions that involved more than one party. It specifically addressed conspiracies to restrain trade. The agreement between the parties could be written or oral and even inferred from the actions of the parties. When determining whether an action has violated the Sherman Antitrust Act, the Court analyzes many factors. It determines whether the action is a per se violation, meaning it blatantly violated the act, or whether it violated the rule of reason standard in which case, the court prohibits only unreasonable restraint of trade. Under the rule of reason, the court weighs factors including the industry and the company's place in the industry to determine if a violation has occurred.

Situations occur in which parties agree to conduct business in a way that will directly impact the marketplace. Some actions are illegal based on the Sherman Act. One such violation is a horizontal restraint of trade, which occurs when two or more parties who compete at the same level of distribution enter into an agreement to restrain trade. This can be in the form of price-fixing-a violation in which the parties involved dictate a minimum and maximum price for the marketplace. Also prohibited is a vertical restraint of trade that occurs when the agreement to restrain trade is between parties that are in different areas of the distribution chain. These cases are often be found to be a violation per se or a rule of reason violation of antitrust laws (depending upon the circumstances). Horizontal restraint of trade is generally seen as a per se violation. Sometimes, competing parties will enter into an agreement in which the parties designate certain aspects of the market to each of the parties in the agreement. This is market sharing under the Sherman Act and is seen as a per se violation because it creates a monopoly with that designated area of the market. In the agreement,

I am looking for assignment help on the topic Antitrust Laws. It would be great if anyone help me.


Related Discussions:- Antitrust laws

Benefits of sell some goods at a local music festival, 1. You have decided ...

1. You have decided to sell some goods at a local music festival. You have hired a sales stand for $500. Your cost per item is $3 and you will sell each item for $5. When you did y

Which actions are most likely to directly increase cash, Which of the follo...

Which of the following actions are most likely to directly increase cash as shown on a firm's balance sheet? Explain and state the assumptions that underlie your answer. 1. It i

Significance in working capital cycle, For several firms trade payables - s...

For several firms trade payables - suppliers of goods and services - represent the major component of current liabilities the amounts owed by the company which have to be repaid wi

BUDGETING, In the context of the public sector, discuss incremental system...

In the context of the public sector, discuss incremental system of budgeting and evaluate their strengths and weaknesses

Conditions of a will-executorship laws and accounts, Conditions of a will ...

Conditions of a will A written will is not valid unless it fulfills the following conditions. 1) The testator must sign the will; or he must affix his mark to the will (i.e. a

Secured creditors-bankruptcy and liquidation, SECURED CREDITORS A secur...

SECURED CREDITORS A secured creditor may: Rely on his security and not prove at all. Surrender his security and prove for the full amount of the debt. Realise his s

Resolution for voluntary winding up-liquidation of companies, Resolution Fo...

Resolution For Voluntary Winding Up A company may be put into voluntary liquidation: 1) By ordinary resolution: where any period fixed for the duration of the company has ex

Calculate breakeven in sales units and in sales value, Calculate breakeven ...

Calculate breakeven in sales units and in sales value: Tycoon makes and sells 600 toy cars per month.  Each toy car is sold for RM40 each.  Tycoon is currently producing at 50

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd