CRR Final Exam

wetlands

CWA prohibits filling or dredging of wetlands unless a permit is issued

European Union enforcement

EU's laws promoting competition tend to be stricter than those of the United States and define more conduct as anticompetitive

drugs and medical devices

FDA is responsible under the FDCA for ensuring that drugs are safe and effective before they are marketed to the public

violations and penalties

FIFRA violations include: 1. Selling a pesticide or herbicide that is unregistered or has a canceled or suspended registration 2. Selling a pesticide or herbicide with a false or misleading label 3. Destroying or defacing any labeling required under the act 4. Penalties for commercial dealers include imprisonment for up to one year and a fine of up to $25,000 (producers can be fined up to $50,000) -Farmers and other private users of pesticides or herbicides who violate the act are subject to a $1,000 fine and incarceration for up to thirty days

formal complaint

FTC concludes that a given advertisement is unfair or deceptive, it sends a formal complaint to the alleged offender

joint and several liability

PRP who generated only a fraction of the hazardous waste disposed of at a site may nevertheless be liable for all the clean-up costs

strict liability of PRPs

Superfund imposes strict liability that cannot be avoided through transfer of ownership

application of foreign antitrust laws

U.S. firms may be subject to antitrust laws of other nations if the firm has a substantial effect

environmental law

individuals who have suffered a harm from pollution rely on the common law to obtain damages and injunctions against business polluters

labeling and packaging laws

labeling must be accurate and must use words that are easily understood by the ordinary consumer

interlocking directorates

no person may be a director for two or more competing corporations at the same time if either of the corporations has capital, surplus, or undivided profits aggregating more than $31,841,000 or competitive sales of $3,184,100 or more (per the FTC's 2016 thresholds)

horizontal market division

per se violation of Section 1 for competitors to divide up territories or customers

fair packaging and labeling act

requires food product labels identify: 1. the product. 2. the net quantity of the contents and, if the number of servings is stated, the size of a serving 3. the manufacturer 4. the packager/distributor -additional requirements on descriptions: savings claims, components of nonfood products

puffery

vague generalities and obvious exaggerations are permissible and not considered deceptive

claims based on half-truths

"half-truth" is true but incomplete information that may lead consumers to a false conclusion

deceptive advertising

-Federal Trade Commission Act (1914) created the Federal Trade Commission (FTC) to prevent unfair and deceptive trade practices, including deceptive advertising -reasonable consumer would be misled by the advertising

horizontal merger

-Overall concentration of relevant market -Relevant market's history of tending toward concentration -Is merger designed to restrict competition

horizontal restraints

-any agreement that in some way restrains competition between rival firms competing in the same market -may include price-fixing, group boycotts, market divisions, and trade associations

violations of clean air act

-civil penalties can be assessed for up to $25,000 per day -additional fines of up to $5,000 per day can be assessed for other violations -intentional violations may involve criminal penalties

federal insecticide, fungicide, and rodenticide act (1947)

-regulates the use of pesticides and herbicides -These substances must be: 1. registered before they can be sold 2. certified and used only for approved applications 3. used in limited quantities when applied to food crops

safe drinking water act (1974)

-requires the EPA to set maximum levels for pollutants in public water systems -operators of public water systems must meet the EPA's standards by using the best available technology that is economically and technologically feasible -drinking water suppliers are required to send an annual statement describing the source of their water to every household they supply -statement must disclose the contaminant level in the water and any possible health concerns associated with the contaminants

mobile sources

-Authority to Regulate Greenhouse Gases: The Clean Air Act does not specifically mention CO2 emissions -2009, the Supreme Court ruled that the EPA had the authority to regulate CO2 emissions. In 2015, the EPA started regulating greenhouse gas emissions from airplanes -Controlling Climate Change: In 2016, a federal district court in Oregon allowed a lawsuit to go forward against the U.S. government for doing too little to control climate change

consumer product safety act (1972)

-CPSA created the Consumer Product Safety Commission (CPSC) with regulatory authority over the safety of consumer products. CPSC has the authority to: 1. Set safety standards for consumer products 2. Ban the manufacture and sale of any product that poses an "unreasonable risk" to consumers 3. Remove from the market any products it believes to be imminently hazardous and issue recalls 4. Require manufacturers to report on any products already sold or intended for sale if the products have proved to be hazardous 5. Administer the Child Protection and Toy Safety Act 6. Distributors of consumer products must notify the CPSC immediately if they receive information that a product "contains a defect which ... creates a substantial risk to the public" or "an unreasonable risk of serious injury or death"

stationary sources

-Clean Air Act authorizes the EPA to establish air-quality standards -primary responsibility for implementing these standards rests with state and local governments -standards aim to control hazardous air pollutants that are likely to cause death or a serious, irreversible, or incapacitating condition -Hazardous Air Pollutants: The Clean Air Act requires the EPA to list all hazardous air pollutants. Nearly two hundred substances have been classified as hazardous -Maximum Achievable Control Technology: The Clean Air Act requires major new sources to use pollution-control equipment that represents the maximum achievable control technology, or MACT, to reduce emissions

superfund

-Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) (1980) -regulates the clean-up of disposal sites in which hazardous waste is leaking into the environment Superfund has four primary elements: 1. Established information-gathering/analysis system to identify chemical dump sites and determine the appropriate action 2. Authorized the EPA to respond to emergencies and to arrange for the clean-up of a leaking site directly if the persons responsible fail to clean up the site 3. Created Hazardous Substance Response Trust Fund (also called Superfund) to pay for the clean-up of hazardous sites using funds obtained through taxes on certain businesses 4. Allowed the government to recover the cost of clean-up from persons who were (even remotely) responsible for hazardous substance releases

automobile fuel economy labels

-Energy Policy and Conservation Act (EPCA) requires automakers to attach an information label to every new car -labels must include the Environmental Protection Agency's fuel economy estimate for the vehicle

enforcement of the act

-FTC is primarily responsible for enforcing the FDCPA -debt collector who does not comply with the act is liable for actual damages, plus additional damages not to exceed $1,000 and attorneys' fees -debt collectors who violate the act are exempt from liability if they can show that the violation was unintentional and resulted from a bona fide error

online deceptive advertising

-FTC monitors websites for deceptive claims -all ads—both online and offline—must be truthful and not misleading -claims must be substantiated and advertisers must have evidence to back up their claims -ads cannot be unfair, which the FTC defines as "likely to cause substantial consumer injury that consumers could not reasonably avoid and that is not outweighed by the benefit to consumers or competition" -ads must disclose relevant limitations and qualifying information concerning the claims advertisers are making. -required disclosures must be "clear and conspicuous"

fraudulent telemarketing

-FTC's Telemarketing Sales Rule (TSR) requires a telemarketer to identify the seller's name, describe the product being sold, and disclose all material facts related to the sale -TSR makes it illegal for telemarketers to misrepresent information or facts about their goods or services -telemarketers must also remove a consumer's name from its list of potential contacts if the customer so requests -amendment to the TSR established the national Do Not Call Registry -telemarketers must refrain from calling those consumers who have placed their names on the list

fair debt collection practices act

-Fair Debt Collection Practices Act (FDCPA) (1977) attempts to curb abuses by collection agencies -creditor that is attempting to collect a debt is not covered by the act unless it mispresented itself as a collection agency to a debtor -Requirements of the Act: Under the FDCPA, a collection agency may not: 1. Contact debtor at his place of employment, if employer objects 2. Contact debtor during inconvenient or unusual times, or at any time debtor is being represented by an attorney 3. Contact third parties other than the debtor's parents, spouse, or financial adviser about payment of a debt, unless a court authorizes such action 4. Harass or intimidate the debtor or make false or misleading statements 5. Communicate with debtor at any time after receiving notice that the debtor is refusing to pay the debt, except to advise debtor of further action to be taken by a collection agency

tainted foods

-Food Safety Modernization Act (FSMA) (2011) provides greater government control over the U.S. food safety system -FDA has authority to recall food products that it suspects are tainted, rather than relying on the producers to recall items -anyone who manufactures, processes, packs, distributes, receives, holds, or imports food products must register with the U.S. Department of Health and Human Services -owners and operators are required to analyze and identify food safety hazards, implement preventive controls, monitor effectiveness, and take corrective actions -FSMA requires food importers to verify products meet U.S. safety standards

clean water act (1972)

-Goals: Safe swimming, protection of fish and wildlife, and elimination of the discharge of pollutants into waterways -CWA also set specific schedules that limit the discharge of various types of pollutants based on the technology available for controlling them -Permit System for Point-Source Emissions: Under this system, called the National Pollutant Discharge Elimination System (NPDES), municipal, industrial, and agricultural sources must have a permit -NPDES permits can be issued by the EPA, authorized state agencies, and Native tribes -permits may be issued only if the discharge will not violate water-quality standards, and they must be reissued every five years -Standards for Equipment: 1. Best available control technology (BACT) must be installed 2. New sources must install BACT equipment before beginning operations 3. Existing sources are subject to timetables for BACT equipment installation and must immediately install equipment that utilizes the best practical control technology, or BPCT 4. Some provisions require EPA to weigh cost of BACT with benefits

increased enforcement in Asia and Latin America

-Japanese antitrust laws forbid unfair trade practices, monopolization, and restrictions that unreasonably restrain trade -China's antitrust rules restrict monopolization and price fixing (except that the Chinese government can set prices on exported goods) -Indonesia, Malaysia, South Korea, Vietnam, Argentina, Brazil, Chile, Peru, and several other Latin American countries all have statutes protecting competition

false claims under Lanham Act

-Lanham Act protects trademarks and also covers false advertising claims -to state a successful claim for false advertising under this act, a business must establish each of the following elements: 1. An injury to a commercial interest in reputation or sales 2. Direct causation of the injury by false or deceptive advertising 3. A loss of business from buyers who were deceived by the advertising

oil pollution

-Oil Pollution Act (1989) after the Exxon Valdez oil spill -any oil facility, oil shipper, vessel owner, or vessel operator that discharges oil into navigable waters or onto an adjoining shore may be liable for clean-up costs and damages -polluters can be ordered to pay for damage to natural resources, private property, and the local economy

per se vs rule of reason

-Per se violations are blatant and substantially anticompetitive (inherently illegal) -Rule of reason agreements do not unreasonably restrain trade -Rationale for the Rule of Reason: Without the rule of reason, almost any business agreement could conceivably be held to violate the Sherman Act -court will consider the following factors: 1. The purpose of the agreement 2. The parties' ability to implement the agreement to achieve that purpose 3. The effect or potential effect of the agreement on competition 4. Whether the parties could have relied on less restrictive means to achieve their purpose

attempts to monopolize

-Section 2 prohibits attempted monopolization of a market, which requires proof of the following elements: 1. Anticompetitive conduct 2. The specific intent to exclude competitors and garner monopoly power 3. A "dangerous" probability of success in achieving monopoly power -related to predatory pricing is predatory bidding, which involves the acquisition and use of monopsony power (market power on the buy side of a market) -predatory bidding occurs when a buyer bids up the price of an input too high for its competitors to pay, causing them to leave the market -predatory bidder then attempts to drive down input prices to reap above-competitive profits and recoup any losses it suffered in bidding up the input prices

credit card rules

-TILA limits liability for stolen cards to $50 -credit-card companies must disclose the method that is used to determine the outstanding balance and to state when finance charges begin to accrue -company may not retroactively increase the interest rates on existing card balances, unless the account is sixty days delinquent -company must provide 45 days' notice before changing the credit-card terms -monthly bills must be sent twenty-one days before the due date -interest rate charged on balance may not be increased except in specific situations, such as when a promotional rate ends -if a customer has balances at different interest rates, payments in excess of the minimum amount due must be applied first to the balance with the highest rate -company may not compute finance charges based on the previous billing cycle (known as double-cycle billing)

disclosure requirements

-TILA's disclosure requirements are contained in Regulation Z -Regulation Z applies to any transaction that has four or more payment installments, i.e. installment loans, car loans, and home-improvement loans -all credit instrument terms must be clearly and conspicuously disclosed including the annual percentage rate (APR), finance charge, amount financed, and total payments (loan amount, plus any fees, finance charges, and interest) -if a creditor fails to follow the exact TILA procedures, the creditor risks contract rescission under the act

telephone solicitation

-Telephone Consumer Protection Act (TCPA) (1991) prohibits telephone solicitation using an automatic telephone dialing system or a prerecorded voice -most states also have laws regulating telephone solicitation -Federal Communications Commission (FCC) enforces the TCPA -TCPA gives consumers a right to sue for $500 per violation of the act OR for the actual monetary losses resulting from a violation, whichever is greater

vertical merger

-Whether merger will create a single firm that controls an undue share of market -Concentration of firms in the market -Barriers to entry -Intent of the merging parties

FTC orders and remedies

-ad is unfair or deceptive, it usually issues a cease-and-desist order to the company -may also impose a sanction known as counteradvertising that requires the company to inform the public about the earlier misinformation -when consumers are injured, the FTC may seek damages or restitution

bait-and-switch advertising

-advertising a product at an attractively low price to lure customers in to buy more expensive items -occurs if the seller: 1. Refuses to show the advertised item 2. Fails to have a reasonable quantity of the item in stock 3. Fails to promise to deliver the advertised item within a reasonable time 4. Discourages employees from selling the advertised item

group boycotts

-agreement by two or more sellers to refuse to deal with a certain person or firm -constitute per se violations of Section 1 of the Sherman Act -very few boycotts for political reasons may be protected under the First Amendment

Clayton Act

-aimed at specific anticompetitive or monopolistic practices that the Sherman Act did not cover -Sections 2, 3, 7, and 8 of the act deal with four distinct forms of business behavior that are declared illegal but not criminal -for each provision, the act states that the behavior is illegal only if it tends to substantially lessen competition or to create monopoly power

environmental impact statements

-all federal agencies must take environmental impact into account when making significant decisions -National Environmental Policy Act requires that an environmental impact statement (EIS) be prepared for every major federal action that significantly affects the quality of the environment -EIS must analyze the impact of the proposed action on the environment, adverse effects of the action and alternatives to the action, and any irreversible effects the action might generate -"major" action involves a substantial commitment of resources

affordable care act

-all restaurant chains with twenty or more locations are required to post the caloric content of the foods on their menus -vending machine foods must be labeled so that their caloric content is visible -restaurants must also post guidelines on the number of calories that an average person requires daily

advertising, marketing, and sales

-all statutes, agency rules, and common law judicial decisions that serve to protect the interests of consumers are classified as consumer law -numerous federal laws have been passed to define the duties of sellers and the rights of consumers

extraterritorial application of US antitrust laws

-any foreign business conspiracy that has a substantial effect on U.S. commerce is within reach of the Sherman Act. U.S. courts will exercise jurisdiction after it is shown that the alleged violation had a substantial effect on U.S. commerce -U.S. jurisdiction is automatically invoked when a per se violation occurs

jurisdictional requirements

-applies to any activity that substantially impacts interstate commerce -extends to U.S. nationals working abroad who are engaged in activities that have an effect on U.S. foreign commerce -federal courts have exclusive jurisdiction over antitrust cases brought under the act

research conservation and recovery act (1976)

-authorizes the EPA to issue regulations for the monitoring, transporting, storage, treatment, and disposal of hazardous substances -requires all producers of hazardous waste materials to label and properly package any hazardous waste that must be transported -a company may be assessed a civil penalty of up to $25,000 for each violation -criminal penalties include fines of up to $50,000 for each day of violation, imprisonment for up to two years (in most instances), or both

minimizing liability

-business can minimize its potential liability under Superfund by conducting environmental compliance audits of its own operations regularly -EPA will waive all fines if a small company corrects environmental violations within 180 days after being notified of violations -policy does not apply to criminal violations or to violations that pose a significant threat to public health, safety, or the environment

EPA actions

-can cancel or suspend registration of substances that it has identified as harmful and can inspect the factories where the chemicals are made -substance is considered harmful if human exposure to the substance results in a risk of one in a million (or higher) of developing cancer

price discrimination

-charging of different prices to competing buyers for identical goods -Requirements to violate Section 2: 1. the seller must be engaged in interstate commerce 2. the goods must be of like grade and quality 3. goods must have been sold to two or more purchasers 4. the price discrimination must be to substantially lessen competition, to create a monopoly, or to injure competition -price discrimination claims can arise from discounts, offsets, rebates, allowances, favorable credit terms, delivery, or freight charges given to one buyer over another

requirements of the act

-collection agency must include a validation notice when it initially contacts a debtor for debt payment or within five days of that initial contact -notice must state that the debtor has thirty days in which to dispute the debt and to request a written verification of the debt from the collection agency

equal credit opportunity

-congress enacted the Equal Credit Opportunity Act (ECOA) (2014) as an amendment to the TILA -credit cannot be denied solely on the basis of race, religion, national origin, color, gender, marital status, or age -prohibits credit discrimination on the basis of whether an individual receives certain forms of income -creditor may not require a cosigner if the applicant qualifies for the amount and terms of the credit request based on the creditor's standards of creditworthiness

price fixing

-constitutes a per se violation of Section 1. If the agreement restricts output or artificially fixes price, it violates the law -always a violation, even if there are good reasons

section 1

-every contract or conspiracy in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal (and a felony punishable by fine and/or prison) -requires two or more persons and the essence of the illegal activity is the act of joining together -these cases are often concerned with whether an agreement (written or oral) leads to a restraint of trade

section 2

-every person who monopolizes, or attempts to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony -can apply either to one person or to two or more persons -deal with the structure of a monopoly and the misuse of monopoly power that exists in the marketplace -monopoly generally describes a market in which there is a single seller or a very limited number of sellers -"threshold" or "necessary" amount of monopoly power must already exist

enforcement and exemptions

-federal agencies that enforce the federal antitrust laws are: 1. Department of Justice (DOJ) 2. Federal Trade Commission (FTC) -FTC was established by the Federal Trade Commission Act -Section 5 of the FTC Act condemns all forms of anticompetitive behavior that are not covered under other federal antitrust laws

jurisdictional determination

-government allows landowners to seek a jurisdictional determination (JD) from the U.S. Army Corps of Engineers as to whether the CWA applies -if the CWA applies, the landowner will be required to procure a permit before filling or dredging the property

consumer notification and inaccurate information

-if denied credit, you have a right to source of any information used by the credit agency, as well as the identity of anyone who has received an agency's report -if a consumer's credit files contain inaccurate information, she/he should report the problem to the agency, and it must conduct an examination of its records -any unverifiable or erroneous information must be deleted within a reasonable period of time -remedies for Violations: A credit reporting agency that fails to comply with the act is liable for actual damages, plus additional damages not to exceed $1,000 and attorneys' fees

territorial or customer restrictions

-imposed by manufacturers on the sellers of the products, to insulate dealers from direct competition with each other -firm may have legitimate reasons for imposing restrictions such as preventing a dealer from reducing costs and undercutting a rival by offering its products without promotion or customer service -territorial and customer restrictions were once considered per se violations -1977, the U.S. Supreme Court held that they should be judged under the rule of reason in Continental T.V., Inc. v. GTE Sylvania, Inc. (p 572) -court's decision marked a shift to a more flexible, economic analysis of these vertical restraints

negligence and strict liability

-injured party can sue a business or person who failed to use reasonable care toward a party whose injury was foreseeable and/or caused by the lack of reasonable care -lawsuits for personal injuries caused by exposure to a toxic substance (such as asbestos) have given rise to a growing body of tort law known as toxic torts -businesses that engage in ultrahazardous activities are strictly liable for any injuries the activities cause

defenses

-innocent landowner defense may protect a landowner who acquired the property after it was used for hazardous waste disposal -landowner must not have had a contractual or employment relationship with the person (or other entity) who owned the land when the contamination occurred -landowner must show that there was no reason to know that property had been used for hazardous waste disposal at time of acquisition -landowner must show that she/he appropriately investigated the possibility of environmental hazards before buying the property at the time of the purchase

clean air act

-issuing regulations to control air pollution; mobile and stationary sources. -Reducing Emissions: Long-term goals are to reduce emissions by 80 percent by 2050 and to develop national standards regulating fuel economy and emissions for medium- and heavy-duty trucks starting with 2014 models

antitrust

-laws regulating economic competition in the United States today are referred to as antitrust laws -antitrust legislation began when Congress passed: 1. the Interstate Commerce Act in 1887, followed by the Sherman Antitrust Act in 1890 2. 1914, Congress passed the Clayton Act and the Federal Trade Commission Act

state and local regulations

-many states have enacted laws to protect the environment by restricting the disposal or recycling of wastes and motor vehicle emissions. -local zoning laws may be designed to inhibit or regulate growth of cities and suburbs by prohibiting certain land uses -firm's proposed development plan may have to be altered to lessen the development's environmental impact

trade associations

-may engage in various activities such as exchanging information, advertising, lobbying government and setting standards -if a court finds that a trade association practice that restrains trade is sufficiently beneficial to the association and to the public, it may deem the restraint reasonable, using the Rule of Reason

intent requirement

-monopoly power, in and of itself, does not constitute the offense of monopolization under Section 2 of the Sherman Act -offense also requires an intent to monopolize -dominant market share may be the result of good business judgment, the development of a superior product, or simply the result of a historical accident -in these situations, the acquisition of monopoly power is not an antitrust violation

relevant market

-must be determined by a court before it can determine whether firm has dominant market share -relevant market has two elements: 1. Relevant product market -includes all products that have identical attributes (such as all brands of tea) as well as products that are reasonably interchangeable with them -products are reasonably interchangeable if consumers treat them as acceptable substitutes. McWane v. FTC (2015), p. 574 2. Relevant geographic market -section of the country within which a firm can increase its price a bit without attracting new sellers or losing many customers to alternative suppliers outside that area

Truth-in-Lending Act

-name given to Title I of the Consumer Credit Protection Act (1968) -disclosure law that is administered by the Federal Reserve Board -only applies to people who lend funds, sell on credit, or arrange an extension of credit in the ordinary course of business

predatory pricing

-one firm (the predator) attempts to drive its competitors from the market by selling its product at prices substantially below the normal costs of production -once competitors are eliminated, the predator presumably will raise its prices far above their competitive levels to recapture its losses and earn higher profits

agency actions

-only the DOJ can prosecute violations of the Sherman Act, whether criminal or civil. Either the DOJ or FTC can enforce the Clayton Act -DOJ or the FTC may ask the courts to impose various remedies, including divestiture (making a company give up one or more of its operations) and dissolution

violations of clean water act

-permits are the key to enforcement -states have responsibility for enforcing the permit system, subject to EPA monitoring Depending on violation, civil penalties range from $10,000-$25,000 per day -criminal penalties apply if a violation was intentional. Penalties range from a fine of $2,500 per day and imprisonment for up to one year to a fine of $1 million and fifteen years' imprisonment

nuisance

-person is liable if they use their property in a manner that unreasonably interferes with others' rights to use or enjoy their own property -to obtain relief under the nuisance doctrine, a property owner has to identify a harm separate from that affecting the public - a "private" nuisance -public authority (state's attorney general) can sue to stop a "public" nuisance

merger

-person or business organization cannot hold stock or assets in more than one business when "the effect ... may be to substantially lessen competition." -statutory authority for preventing mergers or acquisitions that could result in monopoly power or a substantial lessening of competition in the marketplace -crucial consideration in most merger cases is market concentration -courts will consider other factors in determining if a merger violates Section 7 such as whether the merger will make it more difficult for potential competitors to enter the relevant market

Environmental Regulatory Agencies

-primary federal agency is the Environmental Protection Agency (EPA) -other federal agencies that regulate environmental matters include the Department of the Interior, the Department of Defense, the Department of Labor, the Food and Drug Administration, and the Nuclear Regulatory Commission -citizens can sue to enforce environmental regulations if agencies fail to do so -citizens can also sue to limit enforcement actions if agencies go too far in their actions

fair credit reporting act (1970)

-protects consumers against inaccurate credit reporting and requires that lenders/creditors report correct, relevant, and up-to-date information -credit reporting agencies may issue credit reports to users only for specified purposes (such as the extension of credit)

fair and accurate credit transactions act

-purpose of the act is to combat identity theft -FACT established a national fraud alert system that allows consumers to place an alert on their credit file -requires major credit reporting companies to provide consumers with a free credit report every twelve months -account numbers on credit-card receipts must be truncated -merchants can no longer obtain the consumers' names and full credit-card numbers -financial institutions must identify "red flag" indicators of identity theft and to develop rules for the disposal of sensitive credit information

toxic substances control act (1976)

-regulates chemicals and chemical compounds that are known to be toxic, such as asbestos and PCBs -controls the introduction of new chemical compounds by requiring investigation of their possible harmful effects -EPA can require that firms determine the effects of the chemicals on human health and the environment upfront -can regulate substances that could pose an imminent hazard or an unreasonable risk of injury to health or the environment -can also require special labeling, limit the use of a substance, set production quotas, or prohibit the use of a substance altogether

marine protection, research, and sanctuaries act (1972)

-regulates the transportation and dumping of pollutants into ocean waters -prohibits the dumping of radiological, chemical, and biological warfare agents and high-level radioactive waste -established a permit program for transporting and dumping other materials -designated certain areas as marine sanctuaries. Each violation of any provision or permit requirement in the act may result in a civil penalty of up to $50,000. A knowing violation is a criminal offense that may result in a $50,000 fine, imprisonment for not more than a year, or both

nutrition labeling and education act

-requires food labels to have standard nutrition facts and regulates the use of such terms as fresh and low fat -U.S. Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA) issue most food label regulations

exclusionary practices

-sellers or lessors cannot condition the sale or lease of goods on the buyer's or lessee's promise not to use or deal in the goods of the seller's competitor -Exclusive-Dealing Contracts: Sellers are prohibited from forbidding buyers to purchase products from the seller's competitors if the effect of that will "substantially lessen competition or tend to create a monopoly" -Tying Arrangements: The conditioning of the sale of a product on the buyer's agreement to purchase another product produced or distributed by the same seller. The legality of a tying arrangement (or tie-in sales agreement) depends on several factors

sales

-several statutes require the disclosure of certain terms in sales transactions -many states and the FTC have "cooling-off" laws that permit the buyers of certain goods to cancel contracts within three business days -FTC Mail or Telephone Order Merchandise Rule protects consumers who purchase goods via mail, Internet, phone, or fax -merchants are required to ship orders within the promised time and to notify consumers when orders cannot be shipped on time -if the seller does not give an estimated shipping time, it must ship within thirty days -merchants must also issue a refund within a specified period of time when a consumer cancels an order

unilateral refusals to deal

-single manufacturer acting unilaterally is normally free to deal (or not to deal) with whomever it wishes -unilateral refusal to deal will violate Section 2 if 1. the firm refusing to deal has—or is likely to acquire—monopoly power 2. the refusal is likely to have an anticompetitive effect on a particular market

water pollution

-stems mostly from industrial, municipal, and agricultural sources -pollutants include organic wastes, sediments from soil runoff, nutrients (including fertilizers and human and animal wastes), and toxic chemicals and other hazardous substances

potentially responsible parties

-when release or a potential release of hazardous chemicals from a site occurs, the following persons may be held responsible for cleaning up the site: 1. The person who generated the wastes disposed of at the site 2. The person who transported the wastes to the site 3. The person who owned or operated the site at the time of the disposal 4. The current owner or operator

price discrimination defenses

1. Cost justification -if the seller can justify the price reduction by demonstrating that a certain buyer's purchases saved the seller costs in producing and selling the goods, the seller will not be liable for price discrimination 2. Meeting a competitor's prices -if the seller charged the lower price in a good faith attempt to meet an equally low price of a competitor, the seller will not be liable for price discrimination 3. Changing market conditions -seller may lower its price on an item in response to changing conditions affecting the market for or the marketability of the goods concerned

monopolization

1. the possession of monopoly power in the relevant market 2. "the willful acquisition or maintenance of the power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident" -plaintiff must prove both monopoly power and an intent to monopolize -Sherman Act does not define monopoly -control of a specific market by a single entity -can be proved by direct evidence that the firm used its power to control prices and restrict output -plaintiff must offer indirect, or circumstantial, evidence of monopoly power such as the firm's dominant share in a market and significant barriers for new competitors in that market

consumer law

advertising labeling and packaging sales credit protection product safety food and drugs

claims that appear to be based on factual evidence

advertising that appears to be based on factual evidence but is not reasonably supported by evidence will be deemed deceptive

consumer financial protection bureau

agency that oversees the credit practices of banks, mortgage lenders, and credit-card companies

resale price maintenance agreement

agreement between a manufacturer and a distributor or retailer in which the manufacturer specifies the retail price at which retailers must sell the manufacturer's products -both maximum resale price maintenance agreements and minimum resale price maintenance agreements are judged under the rule of reason -setting a maximum price that can be charged for a manufacturer's products may sometimes increase competition and benefit consumers

concentrated industry

either a single firm or a small number of firms controls a large percentage of market sales

federal food, drug, and cosmetic act (1938)

protects against misbranded foods and drugs by establishing food standards, specifying safe levels of potentially hazardous food additives, and providing classifications of foods and food advertising

vertical restraints

results from an agreement between firms at different levels in the manufacturing and distribution process -vertical relationships encompass the entire chain of production -for some products, the production phases are carried on by different firms -in other instances, a single firm carries out two or more of the separate functional phases -called vertically integrated firms -agreements between firms standing in a vertical relationship may affect competition -some vertical restraints are per se violations of Section 1, while others are judged under the rule of reason

federal trade commission actions

when the FTC receives numerous and widespread complaints, it will investigate