Asked by Jimmy Batista on Jul 08, 2024
Verified
In which of the following cases was the firm found not guilty of violating the Sherman Act?
A) Standard Oil case
B) Microsoft case
C) Alcoa case
D) DuPont cellophane case
Sherman Act
A landmark U.S. legislation passed in 1890 aimed at promoting competition among businesses by prohibiting monopolies and restrictive trade practices.
Standard Oil Case
A landmark U.S. legal case from 1911 that resulted in the breakup of the Standard Oil Company due to its monopolistic practices.
DuPont Cellophane
A thin, transparent sheet made of regenerated cellulose, historically developed and branded by DuPont.
- Attain an understanding of significant antitrust disputes and their effect on the configuration of the U.S. commercial landscape.
Verified Answer
HG
Helene GartiJul 10, 2024
Final Answer :
D
Explanation :
In the DuPont cellophane case, the firm was found not guilty of violating the Sherman Act. The court ruled that DuPont did not possess monopoly power in the relevant market of "flexible packaging materials," considering the availability of alternative materials, despite having a dominant share in the cellophane market. This decision emphasized the importance of defining the relevant market correctly in antitrust cases.
Learning Objectives
- Attain an understanding of significant antitrust disputes and their effect on the configuration of the U.S. commercial landscape.