Anti-Trust Laws Essay

During the 1930's American citizens witnessed a breakdown of the Democratic and free enterprise way of life. The government saw that the free enterprise system was failing. The New Deal increased the government's regulation and intervention and the economic system, thus temporarily abandoning the capitalism system and turning toward socialism to find the answer. The answer... the New Deal. Socialism is usually thought of as a form of government that advocates public ownership and public control of wealth (Britannica Jr. Encyclopedia 1980, p.231).

After the Civil war, large businesses ruled America. Prior to the industrial revolution, the government upheld a hands-off approach towards business. Under the laissez-faire principle, free, unregulated markets led to competition, yet this system suffered under the wrath of growing corporations. The impact of big business on the economy and politics was immense during 1870 to 1899. Corporations were growing significantly in number and size, which had a domineering affect on American economy and defined American life.

As shown in Document A, reformers sought to break up large companies that controlled their area of competition, such as the Standard Oil monopoly on oil fields. However, the way at which they were picked was to organize them into good or bad trusts. The way this was done was at the control of the government, thus creating no set standards as to what company trusts to break up to create competition and which ones to keep. Despite the indecision, this was somewhat successful. As the Clayton Antitrust Act states (Document E), “... it shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly to discriminate in price between different purchasers of commodities which commodities are sold for use, consumption, or resale in the United States…”, meaning that women, and other minorities could buy the same items for the same price of others at any store in

From 1865 to 1900 the federal government ignored a lot of economic affairs (also known as Laissez-faire) simply because they could and it made running the government much easier. This became a big issue when: railroad land grants, control of interstate commerce, and antitrust activities began to become very competitive in the market place. You may wonder what laissez-faire is; the dictionary definition is the theory or system of government that upholds the autonomous character of the economic order, believing that government should intervene as little as possible in the direction of economic affairs. This is the reason why larger companies could buy out smaller companies and raise the price of the product because they owned everything so to a large extent the government play a large part in the violation of laissez-faire.

1. Assume that the state of Ohio passed a hazardous waste statute, seeking to protect the general public and workers. The state statute did not violate the Commerce Clause because it imposed no restriction on interstate commerce. Both the state statute and the federal Occupational Safety and Health Act (OSHA) established job safety standards and specified worker training and employer licensing, but the requirements differed. Which statute(s) Ohio corporations had to obey? Pick the best ANALYSISwer.

There are different types of businesses, for example, some use monopolies, trust and pools, while other eliminate competition for higher prices. As stated in “Progressive reformers regarded regulation as a cure for all sorts of socioeconomic and political problems” , “The Sherman Act of 1890 attempted to outlaw the restriction of competition by large companies that co-operated with rivals to fix outputs, prices, and market shares, initially through pools and later through trusts” , meaning, competition is the

1. Give an example of a case that would fall under diversity jurisdiction. Explain all of the key elements of such a case.

*It was justified to the full extent to characterized the industrial leaders of the late nineteenth century as "robber barons". People high up in business such as Andrew Carnegie and Rockefeller were proven to be robber barons by most working class and middle class Americans. They earned their wealth through questionable ways and through intimidation. They tried to ease their robber baron reputation by donating large amounts of money to various public buildings and causes. However, this attempt failed when many citizens realized that these donations gave society no long term benefits.

On July 15, 1994, the United States sued Microsoft for unlawfully maintaining its monopoly in the market for PC operating system software. The lawsuit alleged that Microsoft engaged in anti-competitive marketing practices directed at PC manufacturers that distributed Microsoft operating system software preinstalled on its PCs. Microsoft began to levy fines against original equipment manufacturing (OEM) companies who distributed or promoted operating systems other than Microsoft. On August 21, 1995, Microsoft "consented" to a "Final Judgement" against them.

case brief---Gregory, a comedy writer, entered into a contract with Wessel, a comedian. The contract provided that Gregory would provide Wessel with a 15 minute monologue for his upcoming appearance on the comedy hour and Wessel will pay $250 to Gregory. All performers could make $500 per appearance on the comedy hour. and when Wessel was scheduled to aper on the comedy hour, Gregory informed him that he was unable to provide the monologue, because last time Wessel was asked to make special guest appearances at three local comedy clubs performance during the comedy hour. and Wessel bought lawsuit to Gregory for beach of contract and request damages of $1250.

3. For a crime to be committed, the prosecutor must be able to prove a criminal intent and an overt act to carry out that intent. Jack and Mary agreed to rob a series of banks. Prior to beginning their bank robbery spree, they were arrested and charged with criminal conspiracy. What act did Jack and Mary do that justifies a finding that they committed the crime? Explain.

In the case of Anthony, a New Jersey resident and owner of a waste disposal company in the state of New Jersey, and his two business associates, Paul and Silvio, whom suffered severe injuries due to a motor vehicle accident caused by a negligent truck driver; they have great standing to sue against the neglectful driver and the company associated with the ownership of the vehicle. Regardless of the diversity of their residency/ citizenship, the affected party can proceed to sue the corporation responsible for the damages caused by their staff and property; reason being that they are protected under the Constitution’s diversity of citizenship, and the privileges and immunities clause. Furthermore, these two constitutional clauses in addition to the commerce clause, dictate the court that the matter needs to be brought to.

By establishing these set shipping rates with the railroad companies, it not only made it impossible for his competitors to stay in business, but it also allowed Rockefeller to establish a strong relationship with a key method of transportation for shipping products (Biography). By establishing a strong relationship with the railroad companies, Rockefeller was able to use his successful business practice to “control over 90 percent of the nation’s oil-refining industry by 1880” (The New Tycoons). As time continued on and his business became more successful, he also applied another clever business strategy known as vertical integration. This process consisted of a company purchasing and controlling each and every step of one’s industry production process. Rockefeller’s company used this process very efficiently as they “became known to manipulate crude oil prices to drive refineries to bankruptcy, allowing him to buy them cheaply” (Epstein). By controlling each production step, he was able to minimize costs by removing any companies from the middle that were previously completing steps on the way to the finish product. Rockefeller was also known to manipulate prices of crude oil in order to drive his competing refineries into bankruptcy which allowed him to buy them cheaply (Epstein). However, his economic beliefs and ideas were not the only strategies which John Rockefeller used to elevate his business and personal profile to a national level and

Please answer the questions posed at the end of each case study in essay form.  Each essay will be judged on your capacity to present strong, logical discussions that support your conclusions.

Some of the main causes were the Sherman anti-trust act in 1890, which ended horizontal cartel organizations. There were single companies capable of enforcing rationalization on the individual units. The mergers and acquisitions have decreased family influence, and investment banks became important. There was a great supply of production and business managers from engineering and business schools. Running a large company became more complex, and inside directors or full-time managers gained control of the instruments of power and of the organization, while outside directors sat on boards and represented owners and financiers of the corporations, and held the legal power over the organization. In certain industries, such as oil and steel, there was mainly vertical integration through mergers and acquisitions. In food and chemicals industry, the companies’ strategies were towards diversification into new products and markets. The best examples will be in the transportation industry, including Ford and General Motors. Ford got the advantage by dominating the low end auto market. General Motors used research and development and commercialized the new type of engine. The industries were