The Concentrated Phosphate Export Association consists of the five largest phosphate producers. The Agency for International Development (AID) undertook to sell fertilizer to Korea and solicited bids. The association set prices and submitted a single bid on 300,000 tons. A paid the contract price, determined the amounts to be purchased, coordinated the procedure for buying, and undertook to resell to Korea. The Justice Department sued the association and its members, claiming that their actions violated Section 1 of the Sherman Act. What defense might the defendants have? What is the result?

The Concentrated Phosphate Export Association consists of the five largest phosphate producers. The Agency for International Development (AID) undertook to sell fertilizer to Korea and solicited bids. The association set prices and submitted a single bid on 300,000 tons. A paid the contract price, determined the amounts to be purchased, coordinated the procedure for buying, and undertook to resell to Korea. The Justice Department sued the association and its members, claiming that their actions violated Section 1 of the Sherman Act. What defense might the defendants have? What is the result?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

De Beers and Conflict Diamonds (A) For decades De Beers operated a cartel in the diamond industry in which it controlled nearly 80 percent of the distribution of rough diamonds.80 De Beers also produced, primarily in South Africa, a large but decreasing share of the world’s diamonds. The company founded by Cecile Rhodes and managed by the Oppenheimer family bought under long-term contracts the bulk of the world’s diamonds from mining companies, maintained a large inventory, and sold rough diamonds in an orderly manner to maintain high prices. Distribution of the diamonds was through the Central Selling Organization in London, which sold in bulk to diamond cutters.81 De Beers did not have retail operations. This system worked well until 1990 when the production of diamonds increased and more began to leak into the market. The collapse of the Soviet Union and increased production there and production increases in Western Canada and elsewhere resulted in an increase in the…
A business entity incorporated under the laws of one of the European Union (EU) member nations contracts with the government of a developing nation to form a joint venture for the mining and refining of a scarce raw material used by several industrial nations in the manufacture of highly sensitive weapons systems. The contract calls for the EU-based corporation to invest money and technology that will be used to build permanent refinery plants that eventually will revert to the developing nation. The developing nation also reserves the right to set quotas on sales of this scarce resource and to choose the destination of exports. Due to political conflicts, the developing nation refuses to allow any exports of the scarce material to the United States. This causes a sharp price increase in exports to the United States by other suppliers. The United States asserts antitrust violations against the EU-based corporation for the effects produced within the United States. Should the United…
distinguish between customs act, customs tariff act and eipa
Sportswear manufacturers, Caribbean Premium Sportwear (CPS), signed a contract with a top Trinidadian footballer in terms of which they would pay him a substantial amount of money to wear only their brand of clothing, which they promised to provide to him free of charge. The contract does not specify the date of delivery. Answer the following questions based on the above facts: A. Two months after entering into the contract CPS has not yet delivered the clothing. Have they breached the contract? Explain in full. B. In the event of CPS being in breach of contract, advise the footballer as to the legal remedies available to him, with specific emphasis on what he has to prove in order to succeed in his claim.
Determine the buyer’s and seller’s responsibility in a commercial transaction. Unvergleichbar Gesellschaft AG, based in Bremen, Germany buys raw diamonds from Diamants Stornoway based in Longueuil, QC, under the following terms: Terms of sale: DPU Flughafen Frankfurt am Main, Deutschland, Incoterms 2020: a)The buyer asks for a last minute change before approving the transaction. He no longer wants to clear the shipment at German customs, want the diamonds to be delivered at DHL warehouse in Bremen. How should Incoterms be modified so as to reflect those changes?
Licensing is A. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee. B. contracting with a foreign firm to manufacture products according to certain specifications. C. when a foreign country and a local firm invest together to create a local business. D. having a company handle its own exports directly, without intermediaries. E. exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.
Advances in biological technology have enabled two research companies, Bio Labs, Inc. and Scientific Associates, to develop an insect-resistant corn seed. Neither company is financially strong enough to develop the distribution channels necessary to bring the product to world markets. World Agra Distributors, Inc. has negotiated contracts with both companies for the exclusive right to market their seed. Bio Labs signed an agreement to receive an annual royalty of $1,000,000. In contrast, Scientific Associates chose an agreement that provides for a royalty of $0.50 per pound of seed sold. Both agreements have a 10-year term. During Year 1, World Agra sold approximately 1,600,000 pounds of the Bio Labs, Inc. seed and 2,400,000 pounds of the Scientific Associates seed. Both types of seed were sold for $1.25 per pound. By the end of Year 1, it was apparent that the seed developed by Scientific Associates was superior. Although insect infestation was virtually nonexistent for both types of…
In 1923, DuPont was granted the exclusive right to make and sell cellophane in North America. In 1927, the company introduced a moisture-proof brand of cello- phane that was ideal for various wrapping needs. Although more expensive than most competing wrapping, it offered a desired combination of transparency, strength, and cost. Except for its permeability to gases, however, cellophane had no qualities that a number of competing materials did not possess as well. Cellophane sales increased dramatically, and by 1950, DuPont produced almost 75 percent of the cellophane sold in the United States. Nevertheless, sales of the material constituted less than 20 percent of the sales of “flexible packaging materials.” The United States brought an action, contending that by so dominating cellophane production, DuPont had monopolized a part of trade or commerce in violation of the Sherman Act. DuPont argued that it had not monopolized because it did not have the power to control the price of…
Determine the buyer’s and seller’s responsibility in a commercial transaction. Unvergleichbar Gesellschaft AG, based in Bremen, Germany buys raw diamonds from Diamants Stornoway based in Longueuil, QC, under the following terms: Terms of sale: DPU Flughafen Frankfurt am Main, Deutschland, Incoterms 2020: a)In that situation who is obligated to purchase cargo insurance for the cargo?
Global Crossing The company was founded in 1997 to provide a trans-Atlantic cable to carry telephone and data traffic. Using high-bandwidth optical fiber, the company was able to sell capacity at less than half the price of existing competitors. After six months of operations, Global Crossing offered stock to the public, and the resulting price valued the firm at an astounding $19 billion. Six months later it was valued at $38 billion, more than the Ford Motor Company. The cable technology was not proprietary and data-carrying capacity was a commodity. That meant that customers could easily switch from one supplier to another, putting them in a powerful bargaining position. Furthermore, customers were price-sensitive. Even worse, the threat of entry was high, and other companies were entering the business, fueled by easy financing. High fixed costs but near-zero marginal costs (the cost to carry one more piece of data) led to fierce price competition within the industry. As new…
INCOME TAXATION - PHILIPPINES The City of Manila, claiming that it can impose taxes under the Local Government Code, imposed a tax on banks (in addition to the percentage tax on banks imposed in the National Internal Revenue Code) The banks within the City of Manila objected for the various reasons given below. Which would justify the objection of the banks?
Consider Directors Jack is one of 4 directors of Electric Cars Ltd; the company imports green, environmentally friendly vehicles from a sole supplier Acheron Ltd in the UK. Every year the contract between Electric Cars Ltd and Acheron is renegotiated however this year, Acheron indicate to Jack they want to expand their business in New Zealand and include electric bikes. Jack tells the other directors that Electric Cars is reducing their business in New Zealand but secretly incorporates another company. Jack and his wife are the directors of the new company and it takes 50% of Electric cars business and takes up the opportunity to sell electric bikes as well. Jack resigns from Electric cars. The other directors realise that business is suddenly declining and discover that Jack’s new company is taking their business. With reference to directors 1. Explain to Jack – who is eligible to be a director of a company in New Zealand? a. Would your answer be different…