...Now-a-days there are wars between corporations, more particularly corporations having multi-national operations, for the protection and advancement of their economic interests. These wars are fought on the economic plane but some of the battles spill over to Courts of law. The present case is one such legal battle. The combatants are two American multi national corporations dominating the soft drinks market having operations in a number of countries. On the one side is Coca Cola Company (respondent No. 1), hereinafter referred to as "Coca Cola," and on the other side is PEPSICO INC.(for short "Pepsi"), and its subsidiaries and subsidiaries of the subsidiaries which are under, direct or indirect, control of Pepsi. There is a long history of trade rivalry between these two multi-national corporations. 3. Coca Cola had been operating in this country till 1977 when on account of change of policy of the new Government Coca Cola had to close its operations in India. After the departure of Coca Cola the products of the domestic manufactures filled the vacuum. A substantial share of the market came to be controlled by the Parle group of...
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...(Visa and MasterCard) rules barring member banks from issuing cards on the rival networks were illegal restraints of trade under the Sherman Act, and in what way these rules harmed competition, we need to pay attention to several details. First, under Section 1 of the Sherman Act “every contract, combination in the form of trust or otherwise, or conspiracy, in restraints of trade or commerce among the several States, or wit foreign nations, is hereby declared to be illegal and is felony punishable by a fine and/or imprisonment”. On one hand, Visa, MasterCard, American Express and Discovery are the four major credit- and charge-card networks in the United States. This makes the credit card industry highly concentrated, meaning that a small number of firms control a large percentage of market sales. Although Visa and MasterCard are joint ventures and they bar member banks from issuing cards on rival networks, they still compete against each other. On top of that, Visa and MasterCard may argue that even though the rules that they established with member banks hurt their competitors (American Express and Discovery), it doesn’t necessarily harm competition. Amex and Discovery themselves issue cards to customers, thereby staying in the market. Also, the agreement can be considered a vertical restraint of trade. Vertical restraint is any restraint on the trade created by agreements between firms at different levels. While in case of Visa and MasterCard the banks issue the cards, clear...
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...Question 1 0.5 out of 0.5 points A restraint of trade is an agreement between firms that has the effect of reducing competition in the marketplace. Selected Answer: Correct True Correct Answer: Correct True Question 2 0 out of 0.5 points When applying the rule of reason to determine whether an agreement violates Section 1 of the Sherman Act, a court will not consider Selected Answer: Incorrect the parties' market ability to implement the agreement. Correct Answer: Correct the effect of the agreement on international trade. Question 3 0 out of 0.5 points An act must substantially affect interstate commerce to violate antitrust law. Selected Answer: Incorrect False Correct Answer: Correct True Question 4 0.5 out of 0.5 points Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Fluid Systems Company, another Florida firm. The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida. This is Selected Answer: Correct a market division. Correct Answer: Correct a market division. Question 5 0 out of 0.5 points Edgy Engine Components, Inc., a maker of vehicle parts, refuses to sell to Fidgety Fix-It, Inc., a national vehicle service firm. Edgy Engine convinces Greasy Motor Parts Company, a competitor, to do the same. This is Selected Answer: Incorrect a market division. Correct Answer: Correct a group boycott. Question 6 0.5 out...
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...RESTRAINT OF TRADE The doctrine of restraint of trade is a legal device to attempt to hold the balance between two competing factors - an employee’s freedom to take employment as and when he wishes, and an employer’s interest in preserving certain aspects of his business. Both factors are important, and indeed the law will protect the employer if necessary by the implication of the term fidelity in the contract of employment thereby restraining the employee inter alia from divulging confidential information. However, the employer may wish to go further and extract an express promise from the employee: a) Not to disclose certain information, b) Not to place himself in a position in which he may do so, e.g. by not working for a competitor for a certain period of time within a certain area after leaving the employment. It is thus established that an employer can stipulate for protection against having his confidential information passed on to a rival in trade. But experience has show that it is not satisfactory to have simply a covenant against disclosing confidential information. The reason is because it is so difficult to draw the line between information which is confidential and information which is not; and it is very difficult to prove a breach when the information is of such a character that a servant can carry it away in his head. The difficulties are such that the only practicable solution is to take a covenant from the servant by which he is not to go to...
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...Anti-Trust Law and Monopoly; Restraint of Trade Anti-trust laws encourage competition by “leveling the playing field”. These laws are intended to prevent large companies who have already established themselves from using their size and leverage to prevent competitors from entering their markets. The Sherman Act addresses unfair strategies in two different ways: Section 1 forbids restraint of trade and Section 2 forbids the misuse of monopoly power. Section 1 requires two or more persons conspiring together for a violation, so the essence of the illegal activity is “the act of joining together”. Section 2 refers to “every person”, so the conduct of a single person can result in a violation of Section 2. Any agreement between firms that results in reduced competition in the marketplace is restraint of trade. When there are very few firms in a market and a firm with an extreme amount of market power can affect the market price of its own product that firm has monopoly power. The Sherman Act applies only to restraints that have a significant impact on interstate commerce; it also extends to U.S. nationals abroad. The Clayton Act deals with specific practices not covered by the Sherman Act that reduce competition or lead to monopoly power. However, they only violate the Act if they are found to substantially lessen competition or create monopoly power. The price discrimination section 2 of the Clayton Act makes it illegal to injure buyers through unfair pricing and services...
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...Who Enforces the Antitrust Laws? The antitrust laws are enforced by both public and private parties. A. Government Enforcement The United States Department of Justice Antitrust Division (“DOJ”) and the Federal Trade Commission (“FTC”) share responsibility for investigation and litigation of cases under the Sherman Act; and, review potentially anticompetitive mergers under the Clayton Act. There is not a formal system by which the DOJ and the FTC divide enforcement responsibilities, the agencies devote resources to particular industries where they have investigated or litigated in the past. Typically the DOJ will review mergers in transportation industries, such as airlines or railroads, as well as the telecommunications industry. The FTC focuses its enforcement responsibility in the oil and gas, pharmaceutical, and health care industries. State attorneys general have authority to enforce federal and state antitrust laws. States investigating a matter arising under the federal antitrust laws will jointly investigate with either the DOJ or the FTC, or may conduct a separate investigation. Individuals or businesses that violate antitrust laws are subject to civil penalties that vary by state per violation for individuals, and vary by state per violation for corporations. In addition, state attorneys general have authority to seek restitution on behalf of the citizens of their states as a result of violations of either the federal or state antitrust laws. Some states allow Attorneys...
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...mainly the shifting of particular federal activities toward a new point. Regional integration is also considered to be an important process which compels a country’s enthusiasm to donate or combine into a larger unit to obtain certain goals. The goals achieved through regional integration can be political integration or free trade, as in North American Free Trade Association (NAFTA). There are different levels of integration and each level is dependent on a certain benchmark. The description for the different levels is the disadvantages and advantages of regional integration and the platform for how economic development connects with certain business opportunities. The Advantage of NAFTA The North American Free Trade Agreement also known as NAFTA is an effective trade agreement. NAFTA aids in the increase in agricultural trade and also to the venture between the United States, Canada, and Mexico, which also is a benefit to farmers, ranchers and consumers. NAFTA enforce restraint on the adoption, enforcement, and the development of sanitary and phytosanitary measures (SPS). NAFTA also removes barriers to trade. The restraints confined in NAFTA...
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...Providing for restraint on employment in the employment contracts of the employees in the form of confidentiality requirement or in the form of restraint on employment with competitors is a common practice. However, this hinders the right of the employee to work and carry out the desired profession. While determining whether such covenant is in restraint of trade, business or profession or not, the courts take a stricter view in employer-employee contracts than in other contracts, such as partnership contracts, collaboration contracts, franchise contracts, agency/distributorship contracts, commercial contracts. The reason being that in the latter kind of contracts, the parties deal with each other on more or less an equal footing, whereas in...
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...Maple Corporation conditions the sale of its table syrup on the buyer's agreement to buy Maple's pancake mix. To get its customers to cooperate with this arrangement, Maple gives an extra 5% trade discount for each syrup/mix transaction. The pancake batter mix is not as popular as the syrup, causing retailers to experience oversupplies of mix. To induce customers to buy the oversupply, retailers are having to offer deep discounts on the mix. Legal Reasoning: What type of arrangement is this? What law applies? What are the elements of the law? Is the Maple Corporation arrangement legal in your opinion? Why? This is an example of a Tying Arrangement – an agreement between a buyer and a seller under which the buyer of a specific product or service is obligated to purchase additional products or services from the seller. The antitrust law applies in this situation, due to the fact that the law restricts business practices that are considered to be monopolistic or which restrain interstate commerce. This law consists of two acts – the Sherman Act, and the Clayton Act. The Sherman Act declares illegal every contract, combination or conspiracy in restraint of trade or commerce between states or foreign countries. Restraint of trade is defined as “any activity which tends to limit trade, sales and transportation in interstate commerce or has a substantial impact on interstate commerce. Such restraint tends to restrict production, affect prices, or otherwise control the market...
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...renovation Manny had done to his home. Manny refuses to pay the full contract price, claiming the work was not done properly. It is illegal in their state to do electrical work for compensation without a license. Is Manny liable to Paul for his services? | | No, The contract is illegal, and Manny need not pay for the services. | | | Yes, to prevent unjust enrichment Manny is liable for the market value of the services. | | | Yes, although the contract is illegal, Paul can recover under promissory estoppel. | | | Yes, Paul can enforce the contract, but Manny is entitled to compensatory damages for any inferior work. | Question 4 Parole evidence is evidence based on _______. | | oral statements | | | usage of the trade | | | provisions handwritten into a contract | | | waivers of liability | Question 5 Alice sold her accounting business to a nation wide accounting firm that wanted to establish an office in that area. As part of the sales contract, Alice promised that she would not start up another accounting firm within seventy-five miles of her old business for at least a year. This clause in the sales contract is a...
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...Question Alan, Dave and Joe have been very good friends since their university days. In January 2010, they formed a private limited company, ADJ to run a real estate agency at Suntec Street, with Alan and Dave each holding 20% of the shares. Joe owns the remaining 60% of the shares and is the only one director of ADJ. ADJ needed to buy a motor car for the company’s needs, as all 3 of them frequently bring their clients around looking for properties to buy, sell or rent. During the sale of a second hand motor car by Motor Dealers to ADJ, Motor Dealers represented to Joe that the car had travelled 12,000 km, but is of show room condition. After ADJ bought the car and sent it for servicing, Joe discovered that it had travelled more like 120,000 km. ADJ tried to return the car and get a refund of the purchase price from Motor Dealers. Motor Dealers refused saying that it believed its statements were true. ADJ recently entered into a contract with XY Partnership for the extension and renovation of their office premises to be completed by 26 March 2010. Their contract contained the following clause 12: “XY Partnership agrees to pay ADJ the sum of $3,000 per day by way of liquidated damages, in respect of unfinished work for each day after 26 March 2010.” XY Partnership was not only 6 days late in finishing the building work, but the finished product proved unsatisfactory. ADJ had to spend a large sum of money to remedy the...
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...o Individual right enforceable at law - Procedural o Procedures taken to enforce the law - Public o Relates to the relationship between governments and persons - Private law o Relates to relationships between individuals Chapter 2 Jurisdiction 1. Court of original jurisdiction 2. Court of appeal Criminal court procedure 1. Plaintiff – party bringing the action 2. Defendant – party defending an action 3. Discovery a. Examination and questions Class action - Group of individual represented by one attorney in a suit Chapter 3 Administrative law - Includes laws, rules, decisions etc. - All levels of government Hearing process - Authority o Bodies have power to deny or revoke rights of a person to practice in a trade - Natural justice o Such powers must comply with natural justice Notice of charges against a member Opportunity to prepare and present a case Administrative boards decisions are quasi-judicial - Decisions must be reaches in a fair and...
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...abundance of caution * Payment credited when received! * Liability for lost credit cards: $50 * Liability for lost ATM or Debit cards. Errors in billing. Fair Credit Reporting Act * Notification if denied credit or insurance on the basis of a credit report * On written request credit agency must Protection for debtors: The Fair Debt Collections Practices Act * This law place limits on what the professional debt collector can do when trying to collect money from you The Sherman Act of 1890: Two major parts * Sec. 1: restraint of trade * A. Per se violation * B. Rule of reason: factors… * Purpose of agreement * Power to achieve purpose * Horizontal restraint * Price fixing * Group boycott * Division of markets * Trade associations (OK) * Can’t use that organization to price fix, can’t set your prices * Vertical restraints (rule of reason) * Territorial...
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...3. Critically discuss the use of the social partnership model in Irish collective bargaining. Use details of each of the agreements to illustrate your argument. Collective bargaining is the process through which agreement on pay, working conditions, procedures and other negotiable issues is reached between organised employees and management representatives. The principal feature of collective bargaining is that terms and conditions of employment are determined collectively, not individually. Social Partnership essentially describes negotiations between the Government, representatives of trade union confederations (Irish Congress of Trade Unions), and Employers Confederation (IBEC), and the Irish government about wages and other issues. From 1988 to date Ireland has had 7 different social partnership agreements have been in effect in Ireland. Each agreement has differed slightly in many ways. Some allow for local level additions. Each agreement has become increasing complex with increased attention to social issues and increased focus on economic sectors. Some acts bring in specific. Others focus on contemporary priorities, such as the minimum wage brought in during Partnership 2000 and benchmarking on the Program for Prosperity and Fairness and finally labour standards on the recent Toward 16 agreement. In 1997 the community platform joined the social partnership process. A group of 27 minority national organisations with a view to addressing issues such as drug, asylum...
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...international trade, and what the benefits of international trade are. US Trade Patterns Imports are the goods and services that we buy from people and firms in other countries. Imports represent 18% of total GDP. Exports are the goods and services that we sell to people, firms, and governments in other countries. The U.S is the world's largest exporter, but exports represent a small fraction of total output. The trade balance is the difference between the value of exports and imports. When imports exceed exports we have a negative trade balance called a trade deficit. The opposite is a trade surplus. Motivation to Trade Specialization increases total output. Without imports a country cannot consume more than it produces. Because just by changing the mix of output in at country total world output increases, that country has a motivation to trade. This works because when nations specialize in production, they can export one good and import another and end up with more total goods to consume than they had without trade. PURSUIT OF COMPARATIVE ADVANTAGE The ability of a country to produce a specific good at a lower opportunity cost than its trading partners is called comparative advantage. Nations export goods with relatively low opportunity costs, and import goods with relatively high opportunity costs. Some countries may have absolute advantage, that is, the ability of to produce a specific good with fewer resources than other countries. TERMS OF TRADE Terms of...
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