Asked by Caleb Farris on May 10, 2024
Verified
Fertile Acres Inc., Growers Farm Co-op, and Harvest Orchards agree to exchange information, conduct an advertising campaign, and set certain regulatory standards to govern their operations. This association is
A) a deal that neither restrains trade nor harms competition.
B) not within the scope of the Sherman Act.
C) a per se violation of antitrust law.
D) subject to analysis under the rule of reason.
Sherman Act
A United States antitrust law passed in 1890 that prohibits monopolistic practices and promotes competition.
Antitrust Law
Legislation intended to promote competition and prevent monopolies by regulating anti-competitive business practices.
Regulatory Standards
Established rules and specifications issued by authoritative bodies to ensure products, services, or processes meet specific requirements.
- Acquire knowledge about the core tenets of antitrust laws and how they are applied to corporate actions.
- Attain proficiency in the nuances of the rule of reason and per se violations within the scope of antitrust legislation.
Verified Answer
KG
Kenyth GrahamMay 16, 2024
Final Answer :
D
Explanation :
This association is subject to analysis under the rule of reason because it involves cooperative actions that could have both pro-competitive and anti-competitive effects. The rule of reason assesses whether the association's activities promote or suppress market competition, rather than deeming it automatically illegal (per se violation) or outside the scope of antitrust laws like the Sherman Act.
Learning Objectives
- Acquire knowledge about the core tenets of antitrust laws and how they are applied to corporate actions.
- Attain proficiency in the nuances of the rule of reason and per se violations within the scope of antitrust legislation.