Exam 42: Antitrust

The principal objective of antitrust law governing mergers is to maintain competition.

The concerted action requirement of the Sherman Act Section 1:

Discuss the validity and effect of each of the following: a.Two manufacturers of the same product decide to allocate territories with one taking the southern states. b.A labor union encourages its members and all consumers to boycott a product manufactured by a company that refuses to honor a union contract. c.Betty's Bargain Department Store sells its products for 10% under the suggested retail price.One manufacturer tells the store it will not supply wholesale goods to it unless it charges at least the suggested retail price.

All tying arrangements are per se illegal.