AJ 2 Chapter Notes - Chapter 9: Clayton Antitrust Act, Predatory Pricing, Price Discrimination
3 Dec 2020
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Document Summary
Designed to supplement existing laws against unlawful restraints and monopolies. Price discrimination, tying contracts, exlusive dealing, mergers. Agreements by which the seller or lessor of a product conditions the agreement upon the buyer"s or seller"s promise not to deal in a competitors goods. Direct competitors get together for general purpose. Horizontal, vertical, or conglomerate depending on the relationship between the acquirer and the company acquired. Involves as company"s acquisition of all or part of the stock or assets of a competing company. Automatically illegal per se under sherman anti trust act. Forward merger if the acquiring company purhcases a customer. Backward merger if the acquiring company purchases a supplier. Covers all acquisitions not involving a competitor, customer, supplier. Section 2 of the clayton act amended by adopting the robinson-patman act. Further prohibits price discrimination in interstate commerce concerning commodities of like grade and quality. Prohibits buyers from inducing and sellers from granting discrimination in prices.
