Twomey

1
Twomey JenningsBUSINESS LAW

• Chapter 5
• Government Regulation ofCompetition and Prices

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Power to Regulate Business

• Regulation by government has occurred primarily
  to protect one group from the improper conduct of
  another group.
• Until the middle third of this century,
  regulation of business was primarily directed at
  protecting competitors from misconduct of other
  competitors.
• Beginning with the middle third of this century,
  regulation expanded in the interest of protecting
  consumers.

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Regulation of Markets and Competition

• Regulation of Prices.
• Prohibition of Price Fixing.
• Prohibited Price Discrimination.

• Permitted Price Discrimination.

4
Regulation of Markets and Competition

• Prevention of Monopolies and Combinations.
• The Sherman Act.
• Monopolization (Market Power).

5
Remedies for Anticompetitive Behavior

• Criminal Penalties.
• Sherman Act provides for fine or imprisonment.
• Up to 10 million for corporation.
• Up to 350,000 and/or prison up to three years.
• Civil Penalties.
• Individual treble damages.
• Class Action suit.