The Sarbanes Oxley Act

2647 Words11 Pages
White collar crime has been around for ages. Today more and more news stories can be found where the elite, the top executives of fortune 500 companies, are being prosecuted for participating in illegal activities. It was hoped that the passing of the Sarbanes Oxley Act of 2001 after the Enron debacle would reduce the amount of illegal acts being committed in corporate America. The Sarbanes Oxley act makes executives personally responsible for their activities requiring top management to sign off on financial statements stating they are true and accurate and these executives can face jail time for committing fraudulent acts. Unfortunately, immorality in business is still running rampant. One illegal practice we see happening in…show more content…
“Price-fixing schemes are often negotiated in secret and can be very difficult to uncover, but an agreement can be discovered from "circumstantial" evidence” (Sonnefeld). An example, if a group of direct competitors have regular contact with an unexplained identical contract terms or price behavior together with other factors; such as no reason to have a meeting for legitimate business, unlawful price fixing may be the reason. (McDavid)
The Sherman Antitrust Act of 1980 was the first measure passed by the United States Congress to prohibit trusts. Included in the act were terms such as restraint of trade, concerted action, market allocations, boycotts, monopolies, tying arrangements, and price fixing. (McDavid)
The Sherman Antitrust Act states that agreements to obstruct “price competition by raising, depressing, fixing, or stabilizing prices is the most serious example of a per se violation under the Sherman Act.” (Price Fixing)Under this act, it is not relevant as to whether the fixed prices are set at a maximum price, a minimum price, the actual cost, or the fair market price. It is also immaterial under the law whether the fixed price is reasonable. (McDavid)
Price fixing tends to fall under two
Open Document