1. Antitrust • In the course of doing business, companies, businesses and individuals can easily run afoul of the Antitrust laws of the United States: • If a business is real big or dominant in a market, it needs to be careful how it competes! (Monopolies) • If two or more competing businesses want to do something together or closely communicate, they need to be very careful! (Restraints of Trade) • Final Exam is Thursday, December 16 from 8:00 to 10:00 OBE 118, Fall 2004 Professor McKinsey

2. Agreements in Restraint ofTrade(Sherman Act, Section 1) • Separate entities conspiring, contracting, or otherwise acting in cooperation • Unreasonable restraint of trade

3. Per se versus Rule of Reason(Revisited) • Some actions are considered per se violations: there is no need to show market effect • Everything else is evaluated using a rule of reason that allows for a balanced evaluation as to whether the action is good or bad for competition. (Fact specific)

4. An agreement between Coke and Pepsi would be a horizontal agreement. Example: market division, price fixing. Such agreements are often bad for competition Horizontal versus Vertical Pepsi Coke Regional Distributor Vendor

5. Horizontal Restraints • Any price fixing, rigging, maintaining or even terms of sales- per se violation • Market division – per se violation • Group Boycotts – per se violation Pepsi Coke

6. Vertical Restraints • Price fixing- • Minimum (floor) – Per se • Maximum (ceiling) – Rule of reason • Other price based – Rule of reason • Non-Price Agreements • Rule of reason • Tying products can be per se Pepsi Regional Distributor Vendor

7. Monopoly Violation(Sherman Act Section 2) 1) Market Power in Relevant Market 2) Anticompetitive Acts to get or keep Market Power (Monopolistic Intent) Both elements must be present, it is not illegal to be have monopoly power.

8. Exam III 40 Multiple Choice Questions Thursday, December 16, 8:00 AM Exam covers only the topics since the last exam and is weighted approximately to the relative time we spent on a topic You will require a scantron 882

9. Exam Review- Topic Outline Property Business Organizations Agency Employment Antitrust Types of Property, How you can acquire or create them, rights that come along with them, how to transfer, loan or sell them Focus on Corporations and LLCs; some questions about the basic nature of the other types of entities; one question strictly on partnership law What is an agency relationship, how is it created, what duties are there, what happens in liability situations Basic obligations that employers have re employees and rights employees have; wrongful discharge and employment discrimination Two categories, what generally constitutes a violation, horizontal versus vertical agreements