ECO 350 Lecture Notes - Lecture 2: Treble Damages, Volstead Act, Clayton Antitrust Act
25 Sep 2017
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Document Summary
Merger cases often settle with firms agreeing to "spin off" products and division. A possible doj remedy to a case is an injunction. A court order to prohibit and antitrust violator from the some specific future conduct e. g. microsoft. A similar possible remedy from an ftc case is a cease and desist order. Doj can bring a criminal suit that can result in fines and/or prison sentences. In private cases, successful plaintiffs can win treble damages. Damages can be measured as excess payments made by customers over what the prices would have been in the absence of the conspiracy. This amount is then tripled to determine the actual reward. Coops of farmers, ranchers and dairymen can market commodities collectively. Firms can combine in an association to fix prices on their foreign sales and allocate markets. The regulation itself will protect consumers from the antiturst practices. Rationale: need these joint ventures to maintain us competitiveness against foreign competition.
