Intro to Business & Technology
Professor: Dave Trafton
The United States has several laws that are intended to further fair, balanced, and competitive business practices. Do you think that such laws are effective? If so, why? If not, why not? Be sure to provide evidence to support your position one way or the other.
The United States has several laws that are intended to further fair, balanced, and competitive business practices. These laws are typically effective as control measures to ensure fair business practices are followed. Determining the success or failure of specific legislation or regulations can be relative to what angle you are looking from. With these anti-trust laws we are insured safeness from unreasonable trade, price discrimination, and unfair and anti-competitive business practices. I feel anytime new laws or regulations are introduced there is initial skepticism about their purpose and the impact they will have even when the laws that are enacted that are intended to promote fair and competitive business practices. Although people may not realize it, as a consumer, antitrust laws affect their daily life in a variety of ways. In 1890, Congress enacted the Sherman Antitrust Act, a law designed to restore competition and free enterprise by breaking up monopolies. The Act of July 2, 1890(Sherman Anti-Trust Act) states that “This Act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade. This includes agreements among competitors to fix prices, rig bids, and allocate customers, which are punishable as criminal felonies (pg.1).” The original intention of the Sherman Antitrust Act was to protect consumers from big businesses that were using unscrupulous means to raise prices artificially, such as intentionally producing too few goods to meet consumer demand and thereby driving up the products' value and price. The US Department of Justice says, “The principal law expressing our...
References: Act of July 2, 1. A.-T. (1890, July 2). Enrolled Acts and Resolutions of Congress, 1789-1992; General Records of the United States Government; Record Group 11. Retrieved from National Archives.: http://www.ourdocuments.gov/doc.php?flash=true&doc=51
An Antitrust Primer. (n.d.). Price Fixing, Bid Rigging, and Market Allocation Schemes:What They Are and What to Look For. Retrieved from justice.gov: http://www.justice.gov/atr/public/guidelines/211578.htm
FDIC Compliance Manual. (2014, January). Federal Trade Commission Act. Retrieved from fdic.gov: http://www.fdic.gov/regulations/compliance/manual/pdf/VII-1.1.pdf
Pitofsky, E. M. (n.d.). Institute for International Economics. Retrieved from http://www.iie.com/publications/chapters_preview/56/7iie1664.pdf
U.S. Department of Justice . (n.d.). Antitrust Enforcement and the Consumer. Retrieved from justice.gov: http://www.justice.gov/atr/public/div_stats/antitrust-enfor-consumer.pdf
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