Anti-trust Law

Anti-trust laws were set in motion to deal with unfair competition practices. These laws are intended to stop unfair activities that could lead to monopolies, predatory practices, pricing limitations, merger controls, wrongful interference, advertisings, etc.

A monopoly is a market in which there are many buyers but only one seller. The problem here is that the seller can ask any price on a product or service he or she chooses. This results in maximizing profits at the consumer�s expense. Anti-trust laws legislate against such practices, and with good reason. Legislation in this area is specifically intended to promote free enterprise and prohibit monopolies.

In 1890, the Sherman Anti-trust Act was passed. It was the first government action limiting corporations' (trusts) power. Later, the Clayton Anti-trust Act, a supplementing act, was added to it and after that the Robinson-Patman Act all hotly debated issues. It wasn't until 1974, as a result of suit filed under the Sherman Anti-trust Act that the AT&T monopoly was finally broken up in 1982. In the 1990s, the FTC pursued Microsoft Corporation for the same kind of thing.?

The U.S. Supreme Court is prosecuting three types of violations in Anti-trust law; price fixing, bid rigging, and market allocation schemes. Trade regulation laws are put in place to ensure a free and competitive economy. This ensures that prices, quality, and goods will be provided to the public while preventing only a select few businesses from economic power over consumers. These laws are in place both on federal and state levels.

Related to this area of law is the Federal Trade Commission Act. This Act prevents unfair business practices and competition methods that may affect business commerce. These acts include bad faith act, fraud, violations of public policy, or oppression of any sort. Regulations also state that deception may not be used to mislead the public/consumer in any way. Businesses may also be liable for unfair and deceptive tactics used on their own employees. Since the FTC (Federal Trade Commission) is the governing body here it is they that must enforce the laws and regulations in this area. For example, they would prosecute such actions as false advertising of food, drugs, goods, or services.?

A covenant not to compete is legal depending upon the situation. If you have agreed with your employer, for example, that upon your termination you will not compete for a certain time within a certain geographical area, pursue specific clients, disclose trade secrets, etc., these things are enforceable. Agreements that prevent or restrain from performing lawful professions, trades or businesses are generally considered to restrain from free trade and are not looked upon favorably by the courts, however. If you have any questions about the differences you should consult an attorney.?

Businesses must have the freedom to deal with whomever they choose when it comes to buying and selling of product, without fear of reprisal. Price fixing is another illegal act that vendors may not do. Price fixing occurs when a vendor sets a fixed price within a certain market in combination with another vendor, or when vendors specifically set prices in order to get rid of the competition in the area. These practices are clearly illegal.?

Tampering with used car odometers is another deceptive practice that lawmakers have sought to protect the public from. The Federal Used Car Law is what required car dealers to post those signs on used cars you see these days. And the law that prohibits anyone from falsifying odometer mileage readings? You guessed it! The Federal Anti-Tampering Odometer Law.?

The Federal Automobile Information Disclosure Act required new car dealers to put those sheets with the information on the windows of new cars, listing the base price, car mileage, options, dealer price, and miles per gallon the car gets on the road. These are just some of the ways the FTC is working to help consumer protect themselves from dishonest business practices these days.

It always pays to become as informed as possible, but when the need arises, there is no substitute for a good anti-trust lawyer. An Anti-trust lawyer can help you with such aspects of Anti-trust litigation as unfair price fixing/raising/limiting, and anti-competitive actions against you or your business.?

Find a California Anti-trust attorney in the Internet Lawyer Directory.


http://www.usdoj.gov/atr/contact/newcase.htm