Asked by Syafiqah Sukri on May 10, 2024
Verified
American Oil Company joins a cartel that includes foreign participants to set the price of oil. The cartel has a substantial effect on U.S. commerce. With respect to the foreign participants, under U.S. antitrust laws, this is most likely
A) a per se violation.
B) a violation, depending on the price.
C) a violation, depending on the effect in foreign markets.
D) not a violation.
Cartel
An association of independent businesses organized to control production, pricing, and marketing of goods to minimize competition.
U.S. Antitrust Laws
Laws enacted by the U.S. to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy.
- Explain the impact of antitrust law on international business and its enforcement beyond U.S. borders.
Verified Answer
CL
Carmz LasalaMay 12, 2024
Final Answer :
A
Explanation :
Joining a cartel to set prices, especially when it has a substantial effect on U.S. commerce, is considered a per se violation of U.S. antitrust laws, regardless of the nationality of the participants.
Learning Objectives
- Explain the impact of antitrust law on international business and its enforcement beyond U.S. borders.
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