Price fixing occurs when two or more companies collude to set a standard price; usually obscenely low, then moving up to a higher price.
Resale price maintenance, on the other hand, is not generally considered a naked restraint of trade.
Minimum resale price-fixing is often termed Maximum vertical price-fixing is at least prima facie pro-competitive, since it appears designed to keep prices to consumers low. The fixing of prices by monopolists reduces the income of society. Does the violation require concerted action between at least two parties?Does an agreement between a corporation and a wholly owned subsidiary violate the Sherman Act?Is Horizontal Price Fixing a Per Se violation of the Sherman Act?Attempts by manfacturers to control the resale price of their productsIs Vertical Price Fixing (Resale Price Maintenance) is per se illegal or judged by the rule of reason?Attempts by competitors to divide up markets or customers Are horizontal market allocations a per se violation?Are vertical market allocations judged by the rule of reason test?Two or more firms agree not to deal with a third party and are designed to eliminate a competitor or to make the competitor conform to the groupWhat other boycotts are judged by the rule of reason?Vertical boycotts and horizontal boycotts for political reasonsWhen a seller requires a buyer to purchase a second product in order to obtain a more desired productIf the seller has a considerable amount of economic power in the tying product market A combined effort by two or more businesses for a limited purpose such as research.Can joint ventures by competitors violate antitrust law?A joint venture not formed to fix prices or divide markets will be judged under the ______________________.What are two elements to establish an illegal monopoly?When a firm has sufficient market power to control prices or exclude competition A company that has a market share of less than 40% generally will not be considered a monopolyWhen does a company have a 50% change of being considered a monopoly?A company with market share of between 40 and 70% may or may not be monopoliesCourts have required proof of a specific intent to exclude or to exercise monopoly power and also proof of a high probability of successWho can file criminal and civil actions in federal court against companies for failure to comply with the Sherman Act?Aimed at anticompetitve behavior not covered by the Sherman Act Under the Clayton Act, how are the proscribed activities illegal?Only if they tend to substantially lessen competition or tend to create monopoly powerUnlike the Sherman Act, is the Clayton Act civil or criminal in nature?A merger or acquisition of a company if the effect is to substantially lessen competitionWhat do courts consider in determining if a horizontal merger violates the Clayton Act?Forward Vertical Merger - When a firm acquires a customer Almost exclusively on the likelihood that competition may be foreclosed in a substantial share of the marketA firm acquires a company in a completely different businessWhen one of the merging firms is highly likely to enter the market of the other or where the merged company would become disproportionately largeIf the acquired firm is in danger of becoming insolvent and no other purchasers are interested in acquiring it, can a merger be lawful even if the effect is to lessen competition?Prohibits competing corporations engaged in interstate commerce from having common directors (interlocking directorates)Amended and strengthened Section 2 of the Clayton ActWhat does Section 2 of the Clayton and Robinson-Patman Act apply to?Price discrimination of commodities of like grade and qualityProhibits sellers and buyers from price discrimination only if substantially lessens competition or tends to create a monopoly
Our editors will review what you’ve submitted and determine whether to revise the article.Vertical price-fixing arrangements include agreements by manufacturers to set minimum or maximum resale (i.e., retail) prices for their products. )State-mandated and state-supervised vertical price-fixing schemes—such as state The economic effects of vertical price-fixing are complex, but economists generally agree that at least some vertical price-fixing could be efficient and pro-competitive. Does the plaintiff need to show that the restraint limited competition?Involve agreements between industry players that are on the same marketing level Horizontal Restraints are generally __________________.Agreements between industry players that are on different marketing levels (ex. Such nonprice competition might include the provision of excellent and attentive service by sales staff armed with informative promotional brochures in well-stocked retail showrooms.