Term
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Definition
| A person entitled to the possession, use, income, or enjoyment of an interest or right to which legal title is held by another; a person to whom an insurance policy is payable. |
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Term
| Celler-Kefauver Amendment |
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Definition
| Passed in 1950 to amend the Clayton Act by broadening the scope of Section 7 on mergers and acquisitions. |
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Term
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Definition
| Legislation passed in 1914 that exempts labor unions from the Sherman Act. This law expanded the national antitrust policy to cover price discrimination, exclusive dealings, tying contracts, mergers, and interlocking directors. |
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Term
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Definition
| The legal principles that allows a form of vertical pricing fixing in that manufacturers may maintain the resale price of their products by announcing their pricing policy and refusing to deal with customers who fail to comply with the policy. |
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Term
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Definition
| Those activities involving an agreement, contract, or conspiracy to restrain trade that may be illegal under the Sherman Antitrust Act. |
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Term
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Definition
| The merger resulting when merging companies have neither the relationship of competitors nor that of supplier and customer. |
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Term
| Cost Justification Defense |
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Definition
| A defense to a price discrimination (Section 2 of the Clayton Act) case wherein the defendant seeks to justify charging different customers different prices due to that defendant's costs varying because of the differing quantities purchased by the customers. |
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Term
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Definition
| A buyer agrees to purchase a certain product exclusively from the seller or the seller agrees to sell all of his or her production to the buyer. |
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Term
| Federal Trade Commission Act |
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Definition
| Passed in 1914, this legislation created the Federal Trade Commission(FTC) and authorized it to protect society against unfair methods of competition. The law was amended in 1938 (by the Wheeler-Lea amendment) to provide the FTC with authority to regulate unfair or deceptive trade practices. |
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Term
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Definition
| An arrangement in which a manufacturer refuses to supply any portion of the production line unless the retailer agrees to accept the entire line. |
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Term
| Geographic Extension Merger |
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Definition
| A combination of companies involved with the same product or service that do not compete in the same geographical regions or markets. |
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Term
| Good-Faith Meeting-of-Competitors Defense |
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Definition
| A bona fide business practice that is a defense to a charge of violation of the Robinson-Patman Act. The Robinson-Patman Act is an amendment of the Clayton Act, which outlaws price discrimination that might substantially lessen competition or tends to create a monopoly. This cannot be established if the purpose of the price discrimination has been to eliminate competition. |
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Term
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Definition
| Merger of corporations that were competitors prior to the merger. |
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Term
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Definition
| A per se illegal agreement among competitors as to the price all of them will charge for their similar products. |
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Term
| Horizontal Territorial Agreement |
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Definition
| An arrangement between competitors with respect to geographical areas in which each will conduct its business to the exclusion of the others. |
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Term
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Definition
| An acquisition in which the acquiring company increases its market through product extension or geographical extension. |
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Term
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Definition
| The extinguishing of a corporate entity by the transfer of its assets and liabilities to another corporation that continues in existence. |
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Term
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Definition
| Exclusive control of a market by a business entity. |
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Term
| Noerr-Pennington Doctrine |
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Definition
| This doctrine exempts from the antitrust laws concerted efforts to lobby government officials regardless of the anticompetitive purposes. |
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Term
| Parker vs. Brown Doctrine |
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Definition
| The name given to the state action exemption to the Sherman Act. |
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Term
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Definition
| Under the Sherman Act, agreements and practices are illegal only if they are unreasonable. The practices that are conclusively presumed to be unreasonable are this. If an activity is BLANK, only proof of the activity is required, and it is not necessary to prove an anticompetitive effort. |
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Term
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Definition
| A policy of lowering the price charged to costumers for the purpose of driving competitors out of business. Typically, this policy involves prices that are below the seller's costs of the products sold with resulting losses to the seller. |
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Term
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Definition
| An anticompetitive action that is intended to drive competitors out of business. |
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Term
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Definition
| An agreement or combination by which the conspirators set the market price, whether high or low, of a product of service whether being sold or purchased. |
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Term
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Definition
| A merger that extends the products of the acquiring company into a similar or related product but one that is not directly in competition with existing products. |
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Term
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Definition
| A contract in which two parties agree to mutual actions so that each party can act as both a buyer and a seller. The agreement violates the Clayton Act if it results in a substantial lessening of competition. |
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Term
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Definition
| A contract under which the buyer agrees to buy a certain item only from the seller. |
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Term
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Definition
| Manufacturer control of a brand- or trade-name product's minimum resale price. |
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Term
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Definition
| Monopolies, combination, and contracts that impede free competition. |
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Term
| Robinson-Patman Amendment |
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Definition
| The amendment to Section 2 of the Clayton Act covering price discrimination. As originally adopted, this Act outlawed price discrimination in interstate commerce that might substantially lessen comepition or tends to create a monopoly. |
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Term
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Definition
| Under the Sherman Act, contracts or conspiracies are illegal only if they constitute an unreasonable restraint of trade or attempt to monopolize. An activity is unreasonable if it adversely affects competition. An act is reasonable if it promotes competition. This requires that an anticompetitive effect be shown. |
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Term
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Definition
| An 1890 congressional enactment designed to regulate anti-competitive behavior in interstate commerce. |
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Term
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Definition
| The Sherman Act exemption of the sovereign action of a state that replaces competition with regulation if the state actively supervises the anti-competitive conduct. |
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Term
| Triple Damages or Treble Damages |
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Definition
| An award of damages allowable under some statutes equal to three times the amount found by the jury to be a single recovery. |
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Term
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Definition
| A fiduciary relationship whereby one party(trustee) holds legal title for the benefit of another(beneficiary). |
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Term
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Definition
| One who holds legal title to property for the benefit of another. |
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Term
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Definition
| A contract that ties the sale of one piece of property (real or personal) to the sale or lease of another item of property. |
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Term
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Definition
| A merger of corporations where one corporation is the supplier of the other. |
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Term
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Definition
| An agreement between a seller and a buyer (for example, between a manufacturer and a retailer) to fix the resale price at which the buyer will sell goods. |
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Term
| Vertical Territorial Agreement |
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Definition
| Arrangement between a supplier and its customers with respect to the geographical are in which each customer will be allowed to sell that supplier's products. This type of agreement is analyzed under the rule of reason to determine whether it violates the Sherman Act. Limitations on intrabrand competition may be permitted if there is a corresponding increase in interbrand competition. |
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Term
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Definition
| Legislation passed in 1938 that expanded the Federal Trade Commission's authority to protect society against unfair or deceptive practices. |
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