MGMT Chapter 27

walker process

A private party can bring an action under Section 2 of the Sherman Act based on the attempted enforcement of a fraudulently obtained patent.

Vertical Restraints

Agreements between firms at different levels of the manufacturing and distribution process

price-fixing agreement

An agreement between competitors to fix the prices of products or services at a certain level.

Group Boycott

An agreement by two or more sellers to refuse to deal with a particular person or firm.

exclusive dealing contract

An agreement under which a seller forbids a buyer to purchase products from the seller's competitors. A seller is prohibited from making an exclusive-dealing contract under Section 3 if the effect of the contract is "to substantially lessen competition or tend to create a monopoly."

horizontal restraint

Any agreement that in some way restrains competition between rival firms competing in the same market.

restraints of trade

agreements between firms that have the effect of reducing competition in the marketplace

tying arrangement

an agreement to sell one product only if the buyer agrees to buy another, different product

price discrimination

the business practice of selling the same good at different prices to different customers

predatory pricing

the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market

divestiture

the transfer of total or partial ownership of some of a firm's operations to investors or to another company

treble damages

three times the damages actually sustained