Dr. David J. St. Clair Managerial Economics and Business Strategy
3551 #6 Answers – Summer 2012
1. What type of evidence did Dupont introduce in its plastic wrap trial that proved decisive in its acquittal? __ It brought in cross elasticities to show that there were many substitutes for plastic wrap. It then argued that the market had to be defined to include all substitutes. This broadened the definition of the market to the point where DuPont’s market share was small.___
2. What had Alcoa done that made the judge find it guilty of being a monopoly? _ It had a market share above 90%_. Did the judge rule that Alcoa was a “dirty” firm? _ No ___
3. Why did the verdict in the U.S. Steel
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What was Brown Shoe accused of in the Kinney Shoe antitrust case? ____ vertical market foreclosure _____
22. What was the remedy in the Brown Shoe/Kinney Shoe Case? ____ The merger was disallowed and the two firms were separated _______
23. What does the firm have to do in a consent decree? _ stop the offending practices without admitting guilty _. What does the Justice Department agree to do in return? ___ drops the case _
24. Why do most firms prefer a consent decree to a trial, even when they feel that they are innocent? __ the case is quickly resolved and there is no conviction that can be used to expose the firm to civil suits seeking triple damages __
25. Are interlocking directorates illegal per se? Yes. Is price fixing illegal per se? Yes
26. Are tying contracts illegal per se? Yes Is price discrimination illegal per se? _ No
27. How can the Justice Department and the FCC respond to a notification of merger filed under the Hart-Scott-Rodino Act? (Hint: they have three options.) __1) approve; 2) deny; or 3) approve with conditions __
28. English Common law became the basis for American Common Law. What dos the Common Law say about damages for parties injured by restraint of trade? ___ injured parties are can collect triple damages ____
29. Which type of elasticity is often important in antitrust cases? _ cross elasticity __
30. Why did the
3) Jen operates Jen’s Fruits & Vegetables, a small market stocked entirely with produce grown on her adjacent farm. Under what clause of the Constitution can the federal government regulate Jen’s activities? What is Jen’s best argument against federal regulation of her farm and business? 4) Blizzard Entertainment,
2. Is there evidence of disparate impact against African Americans in the decisions that were made? On what basis did you arrive at this position? Illustrate how the “80 percent rule” can be used with the data in Exhibit 3.2.1 and whether there was a violation of this rule.
**c. If there is a conflict between a state statute and a federal statute, the federal statute
21. The Supreme Court supported his antitrust suit and ordered Northern Securities Company to be dissolved.
4) The Supreme Court ruled on Sweatt v. Painter and McLaurin v. Oklahoma State Regents in 1950, and on Brown v. Board of Education in 1954. What would you argue were the most important distinctions between the two 1950 cases, on the
5. With regards to MDLA 415, what declaration did the court make and why? In your answer explain the law the court relied on in reaching its decision to make the order.
This review will address several issues associated with the legal, business, and ethics related to the case. First, it will describe the legality of the case by reviewing the
Have you been unjustly accused, then punished? So have many companies. When dealing with trusts and monopolies, controversy is sure to arise. This discussion is a result of the benefits, and also the disadvantages of monopolies in our market. With these arguments going on, discussions of the Sherman Antitrust Act in many legal cases, have been whether or not this law is beneficial to our economy and population, or harmful. People have gathered on both sides of this debate looking for the truth behind the effect of the Sherman Antitrust act. To learn how the Sherman Antitrust Act works we must look back to when and why it was created.
2. Maclntyre, Ewan. "The Law of Torts 1." Introduction to Business Law. 2nd ed. Essex: Pearson Education, 2012. 258-304. Print.
Furthermore, the “ subjectmatters of the combination and the combination itself are not excluded from the scope of the act as being matters of intrastate commerce and subject to state control.”
5. According to the case, why didn't the court approve summary judgment for product liability claims? (5 points)
(1) Constitutional Question: Does the New York State monopoly violate the ability of Congress to regulate interstate commerce through Article 1, Section 8, the Commence Clause?
This case analysis will focus on the issues surround the lifestyle product company Holey Soles. Psychologist Ann Rosenberg founded the company in September 2002. She initially operated in her garage and backyard, until she recruited Joyce Groote (now current CEO of Holey Soles) and expanded the company into other parts of North America. Holey Soles focuses on creating innovative footwear made from their trademarked technology SmartCel and SoleTek, which is an injection-molded foam technology. As of July 2007, sales had grown at 300% in each of the last two years and the company was ranked number four in the 2006 Profit magazine ranking of Canada’s Emerging Growth Companies. However as they continue to operate, they
Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (Points : 5)
This case was about the struggles with sustainability with in Nike as well as the fashion industry. Greenpeace came out and slandered Nike, Adidas, Puma, and several other fashion designers for pollution resulting in the manufacturing process of their products. There are several chemicals used in the process of manufacturing clothing and shoes. Several chemicals are also used in the Dying process. Although these facility are 3rd parties and these locations are not used by Nike it has fallen on them along with their competitors to reduce pollution with in the manufacturing process.