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NCJ Number: 49882 Find in a Library
Title: ANTITRUST AND RESTRAINT OF TRADE PRACTICES (FROM WHITE-COLLAR CRIME - A 20TH-CENTURY CRISIS, 1978, BY AUGUST BEQUAI - SEE NCJ-49880)
Author(s): A BEQUAI
Corporate Author: Lexington Books
United States of America
Date Published: 1978
Page Count: 12
Sponsoring Agency: Lexington Books
New York, NY 10022
Format: Document
Language: English
Country: United States of America
Annotation: THE NEED FOR FREE COMPETITION AND THE NATURE OF FEDERAL ANTITRUST LAWS ARE DISCUSSED, ALONG WITH EXEMPTIONS TO AND THE POLICING OF ANTITRUST LAWS.
Abstract: THE THEORY BEHIND THE FREE MARKETPLACE IS THAT IF A SOCIETY IS ALLOWED FREE COMPETITION, UNRESTRAINED BY EITHER GOVERNMENT OR THE PRIVATE SECTOR, RESOURCES WILL BE ALLOCATED IN AN OPTIMAL MANNER, CORPORATIONS WILL PRODUCE IN ACCORD WITH THE NEEDS OF THE MARKETPLACE, AND CONSUMERS WILL HAVE FREEDOM OF CHOICE. IN A MONOPOLISTIC ENVIRONMENT, RESOURCES WILL NOT BE EMPLOYED IN AN OPTIMAL AND THE MONOPOLIST MAXIMIZES PROFITS AT THE EXPENSE OF SOCIETY. COMMERCE MAY ALSO BE RESTRAINED BY AN OLIGOPOLY, A MARKETPLACE DOMINATED BY A SMALL NUMBER OF SELLERS, NORMALLY LARGE FIRMS WITH ENORMOUS LEVERAGE OVER THE ECONOMY. THERE ARE ALSO INSTANCES OF OLIGOSPHONY, WHERE A MARKET PLACE IS DOMINATED BY A SMALL NUMBER OF LARGE BUYERS. THE FIRST FEDERAL STATUTE DESIGNED TO CONTROL SUCH MARKET RELATIONSHIPS WAS THE SHERMAN ACT OF 1890. SECTION 1 OF THE ACT MAKES ALL CONTRACTS, COMBINATIONS, AND CONSPIRACIES IN RESTRAINT OF TRADE IN EITHER INTERSTATE OR FOREIGN COMMERCE ILLEGAL. SECTION 2 PROHIBITS MONOPOLIES OR ATTEMPTS TO ESTABLISH A MONOPOLY OVER ANY AREA OF INTERSTATE OR FOREIGN COMMERCE. SECTION 3 PROVIDES FOR THE FIRST SECTION'S APPLICATION TO THE DISTRICT OF COLUMBIA. SECTION 4 PROVIDES THAT ANY INDIVIDUAL WHO IS INJURED IN HIS BUSINESS OR PROPERTY BY ANOTHER WHO HAS VIOLATED THE ANTITRUST LAWS CAN SUE AND RECOVER THREEFOLD THE DAMAGES SUSTAINED, THE COST OF THE SUIT, AND A REASONABLE ATTORNEY'S FEE. SECTION 5 MAKES UNFAIR METHODS OF COMPETITION ILLEGAL. SECTION 6 EXEMPTS AGRICULTURAL GROUPS AND LABOR UNIONS FROM PROSECUTION UNDER BOTH THE SHERMAN AND CLAYTON ACTS. SECTION 7 PROHIBITS FIRMS ENGAGED IN INTERSTATE OR FOREIGN COMMERCE FROM ACQUIRING STOCK ALSO ENGAGED IN SUCH COMMERCE WHERE THE EFFECT OF SUCH AN ACQUISITION WOULD BE A LESSENING OF COMPETITION. BANK MERGERS ARE SPECIFICALLY EXEMPTED FROM ANTITRUST LAWS, AND THE LAWS HAVE LIMITED APPLICATION IN THE INSURANCE INDUSTRY. IN THE AIRLINE INDUSTRY, THE FEDERAL AVIATION ACT SUPPLANTED THE ANTITRUST LAWS. ENFORCEMENT OF THE ANTITRUST LEGISLATION LIES WITH FOUR ENTITIES: THE PRIVATE INDIVIDUAL, THE STATES, THE FEDERAL TRADE COMMISSION, AND THE JUSTICE DEPARTMENT. THE SUCCESS OF THESE LAWS RESTS HEAVILY ON THE ABILITY AND INTEGRITY OF THE ENFORCERS, AND THE LAXITY OF ENFORCEMENT HAS, IN GREAT PART, BEEN DUE TO THE LACK OF ACTIVITY BY THE ENFORCERS. REFERENCES ARE NOTED. (KBL)
Index Term(s): Antitrust offenses; Federal Code; White collar crime
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http://www.ncjrs.gov/App/publications/abstract.aspx?ID=49882

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