The Clayton Act, the Robinson-Patman Act, and Antitrust Exemptions and Immunities
The Clayton Act, the Robinson-Patman Act, and Antitrust Exemptions and Immunities
XYZ, Inc., the widget manufacturer referred to at the beginning of Chapter 49, may face antitrust issues that go beyond the ones addressed in that chapter. As you study this chapter, consider these questions regarding possible courses of action in which XYZ might engage:
If XYZ, in selling its widgets, charges different prices to different wholesale dealers, is XYZ at risk of antitrust liability? What if XYZ charges a wholesale dealer a lower price than XYZ charges a retailer with which XYZ deals directly?
If XYZ has been charging a certain price for its widgets but XYZ learns that a competing widget manufacturer is offering its widgets at a lower price, would XYZ be at risk of violating antitrust law if it lowers its price for certain customers in order to meet the price offered by the competitor? What if XYZ lowers its price enough to beat the competitor's price?
If XYZ and a competing widget manufacturer decide to merge, what potential hurdles might antitrust law present?
If XYZ decides to acquire a company that produces a material used in making widgets (i.e., a noncompetitor), is antitrust law a potential obstacle to XYZ's ability to carry out the acquisition?
If, through effective lobbying efforts, XYZ helps convince a state legislature to enact a statute that may benefit XYZ at the expense of competition in the widget market, has XYZ committed an antitrust violation?
What ethical questions are suggested by the behaviors asked about above?
