Title: Antitrust Law
1Antitrust Law
2Question
- What is your definition of
- trust?
3Objectives
- What do the antitrust acts deem illegal?
- What are the criticisms of the antitrust acts?
4- TRUST
- A combination of business firms or corporations
formed by an agreement (act as a monopoly)
5- PRICE DISCRIMINATION
- A seller charges different buyers different
prices for the same product - Example
- Auto Sales
6When should Price Discrimination be allowed?
? Doctors charge different prices for the same
service.
? Why is this acceptable?
7The Clayton Act
- Prohibits
- Price Discrimination when it substantially
reduces competition - Tying Contracts
- Sale of one product depends on the purchase of
some other product
8- Prohibits
- Acquisition of competing companies stock if the
acquisition reduces competition - Interlocking Directorates
- Directors of one company sit on the board of
directors of another company in the same industry
9Why would the U.S. Government enact Anti-Trust
legislation?
- A stated objective of government is to encourage
competition - so that monopolies do not have substantial
control - over the prices that they charge.
10List the Intent of These Acts
- Attempting to become a monopoly or restraining
trade is illegal - Certain business practices could not result in a
monopolistic effect - Prevent aggressive price cutting (cutthroat acts)
- Sherman Act
- Clayton Act
- Federal Trade Commission Act
11List the Intent of These Acts
- Robinson-Patman Act
- Wheeler-Lea Act
- Suppliers must give identical discounts to
smaller retailers - (help small business)
- Prevent deceptive practices
- (false advertising)
12Assessment
- What do the antitrust acts deem illegal?
- What are the criticisms of the antitrust acts?