Author Question: Quickness Computer, Inc is a manufacturer of computers. A Hollywood star indicated on national ... (Read 171 times)

CBme

  • Hero Member
  • *****
  • Posts: 548
Quickness Computer, Inc is a manufacturer of computers. A Hollywood star indicated on national television that Quickness was his favorite computer. Buoyed by this comment, sales of Quickness computers surged. Since demand outpaced supply, Quickness decided to sell no more computers unless an accompanying software package was purchased. A competitor informed the Office of the Attorney General of this policy, asserting it was illegal. Decide.

Question 2

In large cities talent agencies typically charge clients no more than a 10 commission. Tina's Talent, Amy's Actors & Models and the Barton Agency are the only three talent agents in a small city. Due to the limited amount of work available for actors and models in their city, the three talent agents have gotten together and agreed to never charge a commission below 15. Discuss if this is acceptable under the Sherman Act.



stallen

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

This is a tying arrangement (or tying sale) which is a violation of law to force purchasers to buy items they do not want in order to buy items that they do want. Quickness would appear to be in violation of the Sherman Antitrust Act.

Answer to Question 2

This is an example of horizontal price-fixing and violates Section 1 of the Sherman Act. Price is a sensitive element of competition and even discussion among competitors has been deemed an attempt to monopolize.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

For a complete list of videos, visit our video library