« previous next »

Author Question: Quickness Computer, Inc is a manufacturer of computers. A Hollywood star indicated on national ... (Read 158 times)

CBme

  • Hero Member
  • *****
  • Posts: 548
on: Jun 24, 2018
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
Reply #1 on: Jun 24, 2018
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
« previous next »
 

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Swallow-tailed Bee-eater in Etosha National Park, Namibia Swallow-tailed Bee-eater in Etosha National Park, Namibia
Artist's conception of the birth of a star within a dense molecular cloud. Artist's conception of the birth of a star within a dense molecular cloud.
A client is having an endoscopy performed by a physician who views the upper gastrointestinal intern A client is having an endoscopy performed by a physician who views the upper gastrointestinal intern
In-line blending is the most accurate method for blending ethanol with gasoline because computers ... In-line blending is the most accurate method for blending ethanol with gasoline because computers ...
Investment in Computers as a Percentage of GDP, 1982–2009 Investment in Computers as a Percentage of GDP, 1982–2009
Video: Allergic Rhinitis

For a complete list of videos, visit our video library