Asked by Herantha Wickramasekera on Jul 10, 2024
Verified
The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:
A) a per se price fixing violation of the Sherman Act.
B) not a violation of the Sherman Act, because it has been made by a professional association.
C) not a violation of the Sherman Act, because a fee is different from a price.
D) subject to the rule of reason.
Sherman Act
A fundamental U.S. antitrust regulation that prohibits business monopoly behaviors and encourages competitive practices.
Per Se
A Latin term meaning "by itself" or "in itself," used to indicate that something is inherently or intrinsically the case.
Professional Association
An organization seeking to further a particular profession, the interests of individuals engaged in that profession, and the public interest.
- Identify and evaluate various antitrust laws and regulations, including the Sherman Act and the National Cooperative Research Act.
Verified Answer
CD
Cinthia Dela CruzJul 15, 2024
Final Answer :
A
Explanation :
DThe recommendation by the National Tax Accountants Professional Association (TAPA) to its members to charge a minimum of $25 per hour for completing tax forms could be considered a per se price fixing violation of the Sherman Act because it directly involves setting a minimum price for services, which restricts competition. However, it could also be subject to the rule of reason, where the context and the effect of the recommendation on market competition would be analyzed to determine its legality under the Sherman Act. The rule of reason approach considers whether the recommended practice promotes or suppresses market competition.
Learning Objectives
- Identify and evaluate various antitrust laws and regulations, including the Sherman Act and the National Cooperative Research Act.