Questions in Antitrust law. Case examples - Essay Example

Comments (1) Cite this document
Antitrust laws are body of governing principles that seek to enhance favorable business environment through promoting fair competition as well as protecting consumers in addition to wronged competitor businesses against anti-competitive practices within the business environment…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.8% of users find it useful
Questions in Antitrust law. Case examples
Read TextPreview

Extract of sample "Questions in Antitrust law. Case examples"

Download file to see previous pages Antitrust laws aim at removing aspects of monopoly within business environments and unfair business practices (Hylton 45). According to Hylton (47), actions that are deemed to be capable of hurting business operations and/or consumers are regarded those that contravenes antitrust laws. Such actions are therefore punishable by law since they go against provisions of business operations guiding principles as defined by antitrust laws such as Sherman Act 1890 and Clayton Act of 1914 amongst others. In order to enhance fair business competition and practices, antitrust laws regulate commerce and its auxiliary services through prevention of any unlawful restraints, monopolies, and price fixings with an aim of not only promoting competition but also encouraging production and provision of high quality goods and services (Hylton 51). Any antitrust law developed within a state of a nation must always focus on safeguarding public welfare. Safeguarding public welfare is attainable through making sure that consumer demands, specifications, needs, and expectations are adequately and timely met through manufacture, production, and sale of goods at reasonable prices. This is true in the case of NCAA v. Board of Regents, 468 U.S. 85 (1984). Nonetheless, despite the fact that antitrust laws aim at reducing levels of monopoly in a bid to enhancing competition, monopoly in itself is not considered unlawful. However, Hylton (61) confirms that if a firm having monopoly powers uses its status to engage in anti-competitive actions thereby infringing on the welfare of the public then such actions amount to violation of antitrust laws. For a claimant to prove that a monopoly organization misused its powers to violate provisions of antitrust laws there is need to identified that the firm in question is a monopoly, that the firm acquired or preserved its monopolistic power through exclusionary of anti-competitive actions, and that claimant’s welfare has been adversely affected due to suffering proximate losses that are a direct consequences of such exclusionary or anti-competitive actions by the monopolistic firm (Hylton 67). In this scenario, there is no doubt that Consumers Power Company (CPC) is a monopolistic firm that produces and distributes power to retail customers in Ohio, Kentucky. By the virtue of being a monopolistic firm, CPC has not violated the provisions of antitrust laws. Unfortunately, CPC is using its status as a monopoly to charge higher rates to the consumers. The idea of using the monopolistic position or power to charge higher rates is a violation of antitrust laws. One of the aspects of antitrust laws is that an individual or firm should not employ anti-competitive actions or exclusionary actions to interfere with the welfare of the public. Power is such an important resource or need for consumers. Therefore, by charging higher rates, consumers may end up not meeting their needs and demands. In this regards, CPC has violated the antitrust laws by using its monopolistic powers to charge higher rates. As identified earlier on, antitrust laws provide that there should be reasonable pricing in distributing or selling a good or a service. Such higher rates are considered to be unreasonable hence CPC has violated antitrust laws through charging higher rates based on its monopolistic status. Moreover, CPC’s refusal to sell power on wholesale to the Tri-State Electric Cooperative (TSEC) and the municipalities is an action that prevents fair competition (Hylton 53). Every organization must not act in a way that it prevents free and fair competition within the business environment. Formation of TSEC and the municipal ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Questions in Antitrust law. Case examples Essay”, n.d.)
Retrieved from
(Questions in Antitrust Law. Case Examples Essay)
“Questions in Antitrust Law. Case Examples Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
clarkjerde added comment 1 year ago
Student rated this paper as
I didn’t know how to start my document. "Questions in Antitrust law. Case examples." helped me out a lot! Especially the list of resources was valuable.

CHECK THESE SAMPLES OF Questions in Antitrust law. Case examples

Antitrust Law

...or price fixing. Spot market sales occur when a large National or regional, interstate, company sells products at a low cost in one area to drive out local competition. Their losses are covered by operations in other areas where their business thrives. For example Standard Oil of New Jersey was found guilty of this practice in 1911. (Anderson and Johnson, 1999) Cartels or oligopolies thrive in conditions when very few competitors are in the same field of business. These orchestrated actions among the few, but powerful players, reduce competition by dividing markets, bid rigging or price fixing. This form of antitrust violation is the most Antitrust Laws and Applications...
3 Pages(750 words)Research Paper

Antitrust Law HW

...laws specifically for retail gasoline sale were enacted in Montana in 1991 and in Colorado and Missouri in 1993 (Anderson and Johnson, 1999). SBC laws on gasoline are enacted to save small companies from competition with bigger ones. Research has proved that states where SBC laws related to retail gasoline are applicable, rates of gasoline are higher. With the awarding of decision in the Standard Oil Company case by the Supreme Court, predatory pricing has been declared illegal under the U.S. antitrust laws. For considering firm’s price predatory, Areeda and Turner (1975) have an argument that if price is less than short –run marginal...
3 Pages(750 words)Research Paper

Antitrust Law Case

...? Antitrust Law Case Antitrust Law Case Antitrust laws can be defined as acts adopted by congress to ban or hinder business practices considered being monopolistic or restraining interstate commerce. A clear example is the Sherman antitrust Act of 1890 between states or foreign countries. The Clayton Act 1914 amended by Robinson Patman Act 1936 prohibits discrimination among customers through pricing and does not allow competition. Interstate commerce includes business within a state that affects the flow of that trade thus making it explicit. The...
3 Pages(750 words)Essay

Business law case study questions

...? LAW CASE STUDY Law Case Study Q1. When a company is duly registered, it acquires a separate legal personality as held by the court in the case of Salomon v Salomon & Co (1897). Explain this legal principle and discuss how it applies to McDaid Development (Ireland) Ltd and its shareholders. The concept of separate legal entity refers to existence of a company and the right that it acquires to sue and be sued in its own name, hold its own property and be liable for any debts accrued (Rose et al 2009). The important phenomenon in respect of separate legal entity is the concept of limited liability that is the liability of shareholders being limited to the...
8 Pages(2000 words)Case Study

The Microsoft Antitrust Case

...The Microsoft Antitrust Case The Microsoft Antitrust case is one of the most popular issues in today's market. This is primarily due to the popularity of the company's products and the global reach of the company. Various issues and allegations were brought up by different personalities and entities. In a way, the case versus the software giant is the product of the collaboration between the United States government and the various players in the compute industry that have been affected by Microsoft's dominance in today's computer market. The table below presents the various stakeholders or key entities and personalities in the case...
2 Pages(500 words)Essay

International Trade Laws

...The aim of this research is to answer three questions related to the area of international law, and specifically claw back provisions, NAFTA memorandum on exclusion / inclusion of certain goods and the correlation and conflict of free trade areas with the conditions of WTO existence. International trade law Do claw back provisions violate international trade law This question is directly connected with the issues of competition; moreover, in order to correctly answer this question it was necessary to perform some research through the scholarly literature sources. The core of the issue is that international...
5 Pages(1250 words)Essay

Business Property and Antitrust Law

...Introduction This present paper analyze on how business property and anti-trust law affects the decision-making and operations at Microsoft Corporation. Impact of business property law on decision-making and operations at Microsoft Corporation In regards to the nature of Microsoft Corporation’s business, the business property law affects their decision-making process and operations, as they cannot integrate patented intellectual property into their range of products and services, and a violation of this law can make the corporation liable to huge fines. Impact of anti-trust law on decision-making and operations as Microsoft Corporation According to...
1 Pages(250 words)Essay


... Antitrust The first case involves four leading tech companies and their employees. All of these four companies were accused of conspiring against their own employees. The Federal Judge ordered these four leading tech companies to come up with a large sum of money that would be used to settle a class-action lawsuit regarding them conspiring against their employees. The companies and their appointed lawyers did not agree to this and took defensive measures by challenging the ruling as well as the lady judge. The companies drafted and filed court papers requesting the U.S court of appeal to reject her ruling and accept their sum of $ 324.5 million antitrust settlement. Clearly, these companies were going against the law (Burns, 1958... ). There...
3 Pages(750 words)Article

Current Issues in Business Economics: Leegin vs PSKS (price fixing issue)

...from Business Electronic Corp v. Sharp Electric Corp (1988) to State Oil Co. v. Khan (1997), Leegin stated that the per se rule was the only remnant of the antitrust law. Leegin argued that the court had already applied the rule of reason in those cases by considering the pro-competitive and pro-consumer effects of minimum resale price maintenance. Leegin argued that the minimum resale price maintenance can only be ruled through the rule of reason because of the demonstrated economic effect. Leegin gave the court numerous examples of the pro-competitive uses and impacts of the minimum RPM. Firstly, Leegin argued that a manufacturer can institute RPM to guarantee that its...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Questions in Antitrust law. Case examples for FREE!

Contact Us