American Paper

American Paper

  • Submitted By: lilgeno46
  • Date Submitted: 05/03/2009 1:56 PM
  • Category: Philosophy
  • Words: 388
  • Page: 2
  • Views: 575

1. The Sherman Act controls illegal control and anticompetitive behavior in businesses. In this case the problem is price-fixing. "Price-fixing can involve competitors: agreeing to not sell below a certain price, agreeing on commission rates, agreeing on credit terms, or exchanging cost information" (pg 87). If companies like the American Crystal Sugar Co. try to fix the price of sugar beets and are caught under the Sherman Act they will not only be convicted but fined. If the growers suit goes through the courts they will be rewarded with the financial lost that they faced because of the companies monoplolyzing strategies.

5. Hines Comsemtic Company was accused of unlaw price discrimination and also discrimination toward some of their retailers. The Hines company did not violate the Clayton Act. They kept the prices of their products uniform throughout their retailers. "Price discrimination prohibits charging different prices to buyers as related to marginal costs" (pg 84). The materials sent to certain stores were for promotional purposes and had no effect on the prices that the Hines Company offered. Thus the claim of unlaw price discrinimation does not have any solid claims.

8. James Owen wen undercover to bring to light the unethical proactices of his employer. On the other hand, he made rash decisions in recording private conversations and complying with unethical business procedures. Owen could have tipped off the government of the violation of the Clayton act and had his company get issued a decree called a divestiture. Owen decided to take matters into his own hands and try to trap his business partners. He realized that he did not want to put himself on the line and decided to make sure that if any person was to recieve the criminal penalties from violating the Sherman Act it would not be himself. The conversations on the tapes have the capabilities to imprison his supervisor.

11. Favorite Food Corp was prosecuted for price discrimination in...

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