A company that attempts to grab a larger market share by doing more functions in

Question

A company that attempts to grab a larger market share by doing more functions internally such as taking direct control of its manufacturing or retailing A company that attempts to grab a larger market share by doing more functions internally such as taking direct control of its manufacturing or retailing A company that attempts to grab a larger market share by doing more functions internally such as taking direct control of its manufacturing or retailing QUESTION 1 O d will be forced by the FTC Act to end certain phases of its activities QUESTION 2 Hut sues the hospital because of the tie-in between hospital stays and food service. The Supreme Court will probably hold the hospital's rule n a an illegal te-im sale under a ule of reason analysis because of the loss of competition

Explanation / Answer

Answer c is correct. A company that attempts to grab a larger market share by doing more functions internally such as taking direct control of its manufacturing or retailing is not contraint by The antitrust laws There are 3 core antitrust federal laws stated as: 1 The Sherman Act 2 The Federal Trade Commission Act 3 The Clayton Act Option b is incorrect because as per Sherman Act which outlaws “every contract, combination, or conspiracy in restraint of trade,” and any “monopolization, attempted monopolization, or conspiracy or combination to monopolize.” Which means that taking direct control of its own manufacturing or retailing doesnot harm or illegal as per the act. Option d is incorrect because The Federal Trade Commission Act bans “unfair methods of competition” and “unfair or deceptive acts or practices.” but here improving the functions and qualities of its own manufacturing and retailing is not illegal or unfair, thus it doesnot violet the FTC act as well. Option e is incorrect because Clayton Act addresses specific activities which pertains mergers and interlocking directorates (that is, the same person making business decisions for competing companies)

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