Federal Trade Commission's Merger Test Pursuant to the Clayton Act
What is the Federal Trade Commission’s merger test pursuant to the Clayton Act? Why have most mergers passed this test? Can you think of any mergers that were disapproved by the government? Why? (based on Legal Challenges text Chapter 20 and Business Ethics text Chapter 16, Part III; tied to course competencies 1 and 2)
The Federal Trade Commission’s merger test pursuant to the Clayton Act requires a showing of reasonable probability of a substantial lessening of competition. Therefor the mergers must not practice price discrimination, which is the sale of the same product to comparably situated buyers at different prices; tying and exclusive dealing contracts, which are the sale of products on condition that the buyer stop dealing with the seller's competitors; corporate mergers, the acquisition of competing companies by one company; and interlocking directorates, the members of which are common members on the boards of directors of competing companies. Most mergers have passed this test because there has been very little government enforcement of the law in the past decade, and because most mergers have been vertical mergers as opposed to horizontal mergers which are subject to government challenge. One major merger that was disapproved by the government is the United Air and US Air merger, the merger was called off by the companies because the government said that they would block it and sue because the government wanted to protect the people. The government believe that if the merger was allowed to proceed, millions of consumers would have little choice but to pay higher fares and accept lower quality air service.
What is the employment at-will doctrine in the United States, and what are some of the major exceptions to the doctrine? How might the employment at-will doctrine engender a legal but immoral discharge? (based on Legal Challenges text Chapter 21 and Business Ethics text Chapter 16, Parts I and II; tied to course competencies 1, 2, 3, and 4)
The Federal Trade Commission’s merger test pursuant to the Clayton Act requires a showing of reasonable probability of a substantial lessening of competition. Therefor the mergers must not practice price discrimination, which is the sale of the same product to comparably situated buyers at different prices; tying and exclusive dealing contracts, which are the sale of products on condition that the buyer stop dealing with the seller's competitors; corporate mergers, the acquisition of competing companies by one company; and interlocking directorates, the members of which are common members on the boards of directors of competing companies. Most mergers have passed this test because there has been very little government enforcement of the law in the past decade, and because most mergers have been vertical mergers as opposed to horizontal mergers which are subject to government challenge. One major merger that was disapproved by the government is the United Air and US Air merger, the merger was called off by the companies because the government said that they would block it and sue because the government wanted to protect the people. The government believe that if the merger was allowed to proceed, millions of consumers would have little choice but to pay higher fares and accept lower quality air service.
What is the employment at-will doctrine in the United States, and what are some of the major exceptions to the doctrine? How might the employment at-will doctrine engender a legal but immoral discharge? (based on Legal Challenges text Chapter 21 and Business Ethics text Chapter 16, Parts I and II; tied to course competencies 1, 2, 3, and 4)