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920). Before 1890, firms were able to do this legally by joining a business trust. The Standard Oil trust of the late 1800’s was a prime example of this, but in turn reflected the negative effects that legal trusts incurred. Many felt that the Standard Oil trust had so much economic power that other corporations which did not belong to the trust could not compete in the marketplace (920).
To remedy the problem, the Federal Government enacted the Interstate Commerce Act along with the Sherman Antitrust Act in 1890 (920). Later, it was followed by the Clayton Act and the Federal Trade Commission Act in 1914 (920). The Sherman Act was the first and most significant in attempting to prevent trusts. Section One of the Sherman Act concludes that society’s welfare is damaged if rival companies enter an agreement to consolidate their power over the market. The Act prevents horizontal restraints, or any agreement that restricts normal competition. Price fixing is one important example of this type of infraction (922).
Vertical restraints on trade are also prohibited under Section One of the Sherman Act. These are any restraints on trade created by agreements between firms at different levels in the manufacturing or distribution process (923). Monopolization and attempts to monopolize through predatory pricing or other means are forbidden (924).
Another important piece of legislation was the Clayton Act of 1914 (926). The major portions of the Clayton Act deal with four types of business behavior that is considered illegal, but not criminal. Further, it is only considered illegal if the effect is to considerably lessen competition or create a monopoly like situation (926).
The Clayton Act of 1914 had four important areas. The first area dealt with regulating price discrimination. This was where a seller reduced a price to one buyer below the price charged to a buyer’s competitor. The second area dealt with
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The respondent sued the Appellants in 2008 on allegations of failing to abide by the non-competition terms. The hearing judge granted the respondent a preliminary injunction seeking to enforce the non-competition accord, but formed a ‘Restricted Territory’ that was not present in the earlier agreement. Before the transaction turned out to become a legal suit, there were steps the management of Rector could have taken to prevent it.
Will the surveys of Coca Cola consumer experts be admitted to court as substantial evidence of false advertising against Pepsi? Brief Answer Yes, Pepsi made a false or misleading advertisement. Lanham Act prohibits the false or misleading representation of fact by way of commercial advertising or promotion which misrepresents the nature, characteristics, qualities or geographic origin of another person’s goods, services and even commercial activities.
1.1) Starting Business: Laws and Regulations Doing business in a country where laws and regulations are defined; makes the business easier and profitable. The idea is to be sensitive to the various laws regarding registration of business entity, employment, taxation, intellectual property rights that form the protection and security base of a business.
Some of the entrepreneurs prefer being sole proprietors while others may prefer partnership depending on the personal commitment (Hillman, 1997). All types of businesses require one to have a business permit from the government to operate. For instance, a restaurant has its own regulations while building and construction has different regulations although they come from one government.
It also avails details concerning the effects of the laws utilized within the health sector to the providers, the hospitals or clinics and insurers. In addition, the paper provides specific examples for the effects that the laws on health care have on the various participants found in the industry.
The American Constitution can be deemed to be among the most imperative legal manuscripts in the record of the contemporary world. It has guided the United States since it gained independence from Britain from being a loose federation of former colonies, to becoming the most powerful countries in the world.
Sole proprietorship This is the simplest form of business whereby an individual owns, manages and control all the business activities. This form of business ranges from an informal to a formal business undertaking. This form of business is preferred when an individual wants to be the sole receiver of all profits.
The primary goal of antitrust is to safeguard the welfare of the public through ensuring that consumers' demands are met by the manufacturer and that the commodities are sold at fair prices. Antitrust aims to make businesses to compete fairly and has had a great effect on business practices and organization of industries in many countries.
iples which must be obeyed and followed by citizens, subject to sanctions or legal consequences” (Cheeseman 25). The concept of law is complex and is based upon the fundamentals of common and civil law. Both of these laws are essential in the American court system, and will