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Chapter 12
Antitrust: Economics, Law, and Politics
12
Business
Undergraduate 2
05/06/2013

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Term
Trust
Definition
arrangement in which shareholders of independent firms agree to give up ehteir stock in exchange for trust certificates that entitle them to a share of the trust's common profits.
Term
Antitrust
Definition
amalgam of social policy, economics, law, and administrative practice
Term
Sherman Act
Definition
1890-prohibits monopoly, price agreement, vertical relationshiops, policy that restrains trade
Term
Per se violations and rule of reason
Definition
courts have held that some sufficiently egregious acts that on the face of it violates antitrust. These acts are said to be per se illegal. Only defense is that defendant didn't do it
Term
Rule of reason
Definition
restraint of trade is illegial if it is unreasonable
Term
Clayton Act of 1914
Definition
extended antitrust to cover mergers reducing competition
Term
FTC-Federal Trade Commission
Definition
created by Congress in 1914 to investigate the structure and behavior of firms engaging in interstate commcerce to determine what constitutes un fair behavior and issues cease and desist orders to those violating antitrust
Term
Wheeler-Lea Act 1938
Definition
extended the language of the FTC to include deceptive as well as unfair methods of competition
Term
Antitrust Division
Definition
on of two federal agencies empowered to act against those in violation of antitrust laws, it initiates action against those who violate antitrust laws and decide which cases to prosectue against whom to bring criminal charges
Term
Conglomerate Merger
Definition
involves companies taht sell different but related products, operate in different regions, or active in completely unrelated area
Term
Collusion and price fixing
Definition
all schools of thought agree that collusion and horizantal price fixing are anticompetitive and DOJ has vigorously prosecuted price fixing and obtained large fines, criminal convictions, and prison sentences for the guilty
Term
proposed changes in antitrust law fail because
Definition
intensity of ensuing politics and complexity of issues
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