MGMT 35400 Chapter 5: Government regulation of competition and prices
30 Jan 2019
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Document Summary
Federal government may regulate any area of business to advance the nation"s economic needs. States may regulate all aspects of business as long as it doesn"t impose unreasonable burden on interstate commerce or any activities of the federal government. States and federal government have statutes that prohibit unfair methods of competition. Monopolies and combinations that restrain trade are prohibited under the federal antitrust laws. Sherman antitrust act-includes two very short story sections that control monopolistic behavior. Not only applies to buying and selling activities but also manufacturing and production activities. Market power-the ability to control price and exclude competitors. Competitors are not permitted to agree not to deal with certain buyers. Divestiture order-a court order to dispose of interest that could lead to a monopoly. Clayton act-a federal law that prohibits price discrimination. Robinson-patman act-a federal statue designed to eliminate price discrimination in interstate commerce.
