...Antitrust law is a complex area of federal and state statutory law, the primary purpose of which is to prevent businesses from creating unjust monopolies or competing unfairly in the marketplace. Antitrust law seeks to maximize market efficiency and to protect consumers. Antitrust law prohibits some actions between businesses at different levels of the market. Agreements or actions between businesses and customers, between manufacturers and distributors, or between distributors and retailers. An experienced antitrust attorney who stays abreast of current developments in joint venture policy should be able to advise the organization on how to avoid antitrust problems. The Sherman Anti-Trust Act is the basic federal antitrust statute. It prohibits...
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...Antitrust September 17, 2009 Tonight’s Agenda Role Call Review of Last Week, Current Events Antitrust Case Study: DeBeers Wrap Up Review of Last Week “People of the same trade seldom meet together, even for merriment and division, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” -- Adam Smith “Perfectly Competitive Market” Consumers well-served. Receive goods at lowest price possible. Society able to choose among competing good with maximum efficiency. Firms that do not produce what consumers want at a fair price are quickly eliminated. Highly restrictive model applying stringent standards. Antitrust Perfect competition model is essentially static. Real world markets are extremely dynamic. Perfect competition model is unsuitable as a benchmark. Antitrust Laws Promote a competitive economy by prohibiting actions that restrain, or are likely to restrain, competition and by restricting the forms of market structure that are allowable. Limit the activities of firms that have legally obtained monopoly power. Intended to provide a general statutory framework to give the Justice Department, the FTC, and the courts wide discretion in interpreting and applying them. The Development of Antitrust Laws Trust was a device for pyramiding control over several operating companies. The Sherman Antitrust Act (1890)...
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...Laws in the United States The United States has various laws in place, which are anticipated to foster fair, balanced, and competitive business practices. These laws are placed as control measures to help safeguard fair business practices. With anti-trust laws in place we are then warranted a since of security from unfair and anti-competitive business practices, unreasonable trade, and price discrimination. As though anything new that is introduced, laws and or regulations when newly introduced can become the product of skepticism. Typically the judgmental ears question the new laws purpose and what influence it will have, even though these new laws may be intended to foster fair and or competitive business practices. Although most of us do not recognize their value, anti-trust laws affect our daily lives in a multiplicity of ways. In 1890 Congress ordained the Sherman Antitrust Act, a law designed to restore competition and free enterprise by breaking up monopolies. This Act July 2. 1890 states the following: “This Act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade. This includes agreements among competitors to fix prices, rig bids, and allocate customers, which are punishable as criminal felonies.” The novel purpose for Sherman’s Act was to protect consumers from big business that was exercising immoral means to raise the prices of their product falsely, for example producing too few goods to help meet...
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...between the concepts of criminal law, antitrust, and health care as they apply to U.S. health law in the 21st Century. Conceptualize the primary ways in which these laws apply to U.S. health care administrators. In order to properly analyze between the concepts of criminal law, antitrust law, and the health care law I had to fully understand them individually. Worldwide, the criminal law is what protects and maintains the public well-being and safety of our communities. Criminal laws are directed to a system that is concerned with the punishment of those who commit crimes. The Antitrust law, helps prevent and/or control the intent of promoting competition within a business. Furthermore, we all understand that the health care law simply oversees all health issues whether it has to do with the physician, facility, and/or patient. In the 21st century, the primary way in which the laws apply to the U.S. health care administrator is based on how to receive proper business with affecting physician and patients. The criminal law deals with more on to properly treat someone who is in need of care within the health care establishment. The antitrust law differs tremendously. The antitrust laws in the United States is more comprehensive than those of other industrialized nations. Many other industrialized nations, perhaps because they focus on the possibility of foreign competition, have minimal antitrust law. In the United States, the original antitrust law was the Sherman Act of 1890,...
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...Week 3 Research Paper DeVry University The United States has several laws that are intended to further fair, balanced, and competitive business practices. Do you think that such laws are effective? If so, why? If not, why not? Be sure to provide evidence to support your position one way or the other. Before the late 1800’s there were no laws to protect consumers and the process of competition. Often times, the consumers and the well being of all were not taken into consideration before these antitrust laws were put into act. The business owners were more often than less, only looking to make a profit no matter what that took. Thankfully, in 1890 Congress passed the first antitrust law, the Sherman Act as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.” This law states that, “This Act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade. This includes agreements among competitors to fix prices, rig bids, and allocate customers, which are punishable as criminal felonies.” (www.ourdocuments.gov/, 2014) A law designed to restore competition and free enterprise by breaking up monopolies. The original intention of the Sherman Antitrust Act was to protect consumers from big businesses that were using unscrupulous means to raise prices artificially, such as intentionally producing too few goods to meet consumer demand and thereby driving up the products'...
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...Business Laws…Effective or Not? Chamberlain College of Nursing BUSN115 Introduction to Business and Technology Professor Tammy Lewis Spring, 2014 Business Laws…Effective or Not? The question this week that we are discussing is that the United States has several laws that are intended to further fair, balanced, and competitive business practices. Are such laws effective? If not, why? There are several laws in place such as the Sherman Antitrust Act, the Clayton Antitrust Act and the Federal Trade Commission Act. Anti-Trust laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding. (Bovee and Thill p. 39). We will discuss each of these laws throughout the paper and hopefully answer the question that was originally asked. The United States laws that are in place currently are typical effective as control measures to ensure fair business practices are followed. Determining the success or failure of specific legislation or regulations can be relative to what angle you are looking from. With anti-trust laws we are insured safeness from unreasonable trade, price discrimination and unfair and anti-competitive business practices. The Sherman Anti-Trust Act In 1890, Congress enacted the Sherman Anti-Trust Act, which is a law designed to restore competition and free enterprise by breaking up monopolies. The Act of July 2, 1890 (Sherman Anti-Trust Act) states that: “This Act outlaws all contracts, combinations...
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...THE UNFAIR COMPETITION LAWS INTRODUCTION The purpose of this paper is to discuss the name and describe the different types of structural organizations used by multinational corporations. The different organizational structures are the parent company, the nonmultinational enterprise, the national multinational enterprise, and the international multinational enterprise. I will also discuss the home state regulation of multinational enterprises. The forms of regulations discussed in this paper will be the Sherman Antitrust Act, the Clayton Act and the Robinson-Patman Act. Also there effects on business in the 21st century. THE MULTINATIONAL ORGANIZATION The Parent Company To carry out operations internationally, large business have adapted their organizational structures to share risks and to take advantage of economies of scale. The simplest international operating structure is the “nonmultinational enterprise,” in which a firm organized in one country contracts with an independent foreign firm to carry out sales or purchasing abroad. Somewhat more complex is the “national multinational enterprise,” in which a parent firm established in one country establishes wholly owned branches and subsidiaries in other countries. The most complex is the “international multinational enterprise” made up of two or more parents from different countries that co-own operating businesses in two or more countries. (August, R. 2000, International Business Law) The Nonmultinational...
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...compensation, occupational safety, and other worker protection laws, with a specific attention to the Family and Medical Leave Act. This week also covers the collective bargaining agreements and labor law, as well as several laws and decisions a company must make regarding these labor law issues. In addition, you examine equal opportunity in employment and Title VII, including what comprises this significant law. You review regulatory laws, environmental protection and global warning, as well as antitrust laws and unfair trade practices. The readings focus on introductory concepts and the laws that support these concepts. Employment and Regulatory Risk OBJECTIVE: Differentiate between types of employment relationships and the associated legal considerations. Resources: Ch. 31 & 32 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues Content • Ch. 31: Employment, Worker Protection, and Immigration Laws o Introduction to Employment, Worker Protection, and Immigration Laws o Worker’s Compensation • Case 31.1 Workers’ Compensation: Medrano v. Marshall Electrical Contracting Inc. o Occupational Safety • Ethics Spotlight: Company Violates OSHA’s Safety Rule o Fair Labor Standards Act (FLSA) • Ethics Spotlight: Fair Labor Standards Act Pay Violation • Ethics Spotlight: Microsoft Violates Federal...
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...BUSINESS PRACTICE LAWS IN THE U.S. DeVry University Business Laws Effective or Not When referring to the business practice laws or the Antitrust laws, I feel that they are effective. They are setup to make things somewhat fair in the business world and allowing companies to be competitive, at the same time protecting consumers. These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices (FTC). They also are setup to benefit the consumer, by having incentives for businesses to operate, keep prices down, and by keeping the quality up. These laws also, make it fair to the other companies and stop companies from monopolizing. By setting up the law of stopping monopolies, has also ensured there is effective economy. This was done in the late 1890’s with the Sherman Antitrust Act. The act's primary goal was to limit the expansion of monopolies, the restriction of free trade (competition) and the imposition of price fixing by industry members or any combination of business practices that led to the restriction of trade (Heakel, 2010). This allows for more competition, which has helped the consumer able to get the best price for their money and also allowing the consumer to have a choice in where to buy a product. So, basically there are many sellers busily competing against one another to sell a particular kind of product or service to paying customers, no seller will be able to take unfair advantage of the buyers, but...
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...Research Paper #1 Antoine Finley Devry University Business Practices Introduction The United States has several laws that are intended to further fair, balanced, and competitive business practices and I think they are effective but there are some professional economist who don’t always agree on what role the government should play in the economy. I intend show examples of how the laws set in place are helping the competitive business practices. The examples I plan to focus on are major government agencies and what they do, antitrust legislation, and merger and acquisition approvals, and encourage innovation and economic development. These examples will back my belief that the laws set by the United States government are effective. It is stated in Bovee and Thill (2012, p.38) based on the belief that fair competition benefits the economy and society in general, governments intervene in markets to preserve competition and ensure that no single enterprise becomes too powerful. Major Government Agencies To keep the business practices fair, balanced, and competitive the United States government has agencies to promote standards, regulate and oversee industries and enforce laws and regulations. These agencies are Consumer Product Safety Commission (CPSC) which regulates and protects public from unreasonable risk of injury from consumer products, Environmental Protection Agency (EPA) which develops standards to protect the environment, Equal Employment Opportunity Commission...
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...Article/Case Law Search Tina Thomas HCS/430 - Legal Issues in Health Care: Regulation and Compliance February 28, 2011 William Bross Article/Case Law Search The main function of the anti trust law in health care is to help keep the industry competitive and open so that any means of delivery service that are new or any new financing of health care services are able to compete for the acceptance by any purchasers. By developing these arrangements helps the competition such as providers, insurers, and any others and this is important to help prevent the fixing of prices, and any other agreements that may be allocated among the competitors. By enforcing the anti trust laws federally has helped to facilitate the delivery of health care systems that is efficient and has helped to challenge any efforts of any anticompetitive providers in health care delivery. Anti trust laws are a body of laws that help to prohibit any anti competitive behavior and any business practices that are unfair. These laws are made to help encourage competition in the workplace. These anti trust laws make many practices illegal and they may hurt consumers and businesses and can violate ethical behavior standards. In order to prevent failure within the market there are regulators along with candidates that are private which helps to apply the anti trust laws. These anti trust laws are supposed to help produce prices that are low and also make services and good better. These laws continue to be a...
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...18. May 2012 Final Journal Topic: Monopoly and Antitrust The market power of either buyers or sellers, harms buyers who may have the opportunity to buy at competitive prices. It also reduces the production, which causes a deadweight loss. Excessive market power also raises issues of equity and justice, because if a company has too much monopoly power, it makes profit at the expense of consumers. A monopoly is a situation in which there is a single supplier or seller of a good or service for which there are no close substitutes. Economists and others have long known that unregulated monopolies tend to damage the economy by (1) charging higher prices, (2) providing inferior goods and services and (3) suppressing innovation, as compared with a competitive situation (i.e., the existence of numerous, competing suppliers of the good or service).[1] In theory, the Government or State could collect the excess profits that the company obtained through taxes and then redistribute it among the buyers of the product. However, this redistribution is usually not feasible. It is difficult to ascertain what proportion of the profits of an enterprise is attributable to monopoly power and it is even more difficult to locate all buyers and reimburse them an amount proportional to their purchases. How can society, then, limit the market power and prevent the anti-competitively use of it? In the case of a natural monopoly, i.e. an electricity/power...
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...Fundamentals of Business Law and Ethics Course of Study Your competence will be assessed as you complete the LWC1 objective assessment for this course of study. This course of study may take up to 10 weeks to complete. Introduction Overview There are the two major subdomains of study within the Fundamentals of Business Law and Ethics Course of Study: business law and business ethics. The exam covers 11 business law and ethics concepts, including the following: contractual relationship government regulation of business dispute resolution labor and employment law hiring and employment practices warranties, negligence, and liabilities Sarbanes-Oxley Act ethical issues in business ethical leadership ethics programs use of company resources You likely have had some experience with the legal system, either through your own encounters or merely through listening to the nightly news, and you have probably read or heard about various ethical and legal issues causing financial upheaval in today's business world. This background will serve you well in this study. Now you can expand on that experience, and perhaps refine and enhance your own views on these issues. Once you complete this course of study, you will have demonstrated a level of competence that you can immediately use in your work setting and career. Outcomes and Evaluation There are 10 competencies covered by this course of study; they are listed in the "Competencies for Fundamentals of Business Law and Ethics (LWC1) " page...
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...| ANTITRUST LAW | | Name -Manpreet Kaur [Date] | “The mission of the Antitrust Division is to promote economic competition through enforcing and providing guidance on antitrust laws and principles”. Antitrust laws have been developed to create the strong foundation of a free & open market of a vibrant economy. Market is so competitive now a days, there are so many options available for products & services, which is the result of antitrust laws. Antitrust is developed to help both consumers & business owners. “These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices” Antitrust laws are developed by the U.S. Government, also commonly known as "competition laws". Antitrust law was put in place by U.S. Government to protect consumers from being vulnerable to exploitery business practices. Government protects consumers by ensuring that the competition which exists in the market is fair, & would also ensure that enforcement leads to an open-market which is consumer friendly. ANTITRUST LAW-GOAL & HISTORY The goal set by government is to protect the end user, consumer, antitrust laws “is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace”. Consider being in a market with one option, what it would offer to consumers, technically nothing, because there are no options. Antitrust law ensure that the “Competition in a free market benefits American...
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...Antitrust Practices Michael D. Kelley Chamberlain College of Nursing Principles of Economics Econ-312N Allison Thomas March 24, 2013 Antitrust Practices The search for a current antitrust case has led me to the Department of Justice (DOJ) website and to something near and dear to my heart, beer. Upon reading a few articles, it has been proposed by the DOJ that Anheuser-Busch has requested to buy Modello, the third largest brewer in the country, therefore threatening competition and subsequently changing the marketplace economics. Since there are two main producers of beer in the United States of America (USA) namely Anheuser-Busch (39%) and MillerCoors (26%) accounting for 65% of the marketplace, the merger of Anheuser-Busch and Modello, could potentially violate section & of the Clayton Act. Section & of the Clayton Act state when one company gain’s sufficient stock in an opposing company to the extent that competition would suffer as a whole, then the company acquiring the smaller competitor would be in violation of the Clayton Act, specifically Section 7. In this particular instance, Anheuser-Busch has part ownership in the Modello company, as is. If it is allowed to acquire the remaining portion of the company, it will be able to have such a market share in the beer industry; it can potentially drive up beer prices and upset the entire market. Anheuser-Busch claims it would sell its shares to the competitor, Constellation Corporation, allowing them...
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