« previous next »

Author Question: Quickness Computer, Inc is a manufacturer of computers. A Hollywood star indicated on national ... (Read 181 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?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Tuktut Nogait National Park, Northwest Territories, Canada Tuktut Nogait National Park, Northwest Territories, Canada
Indian wild boar (Sus scrofa cristatus) at Ranthambore National Park Indian wild boar (Sus scrofa cristatus) at Ranthambore National Park
Four cheetahs at Serengeti National Park, Tanzania Four cheetahs at Serengeti National Park, Tanzania
Circumpolar Star Trails Circumpolar Star Trails
Balmer Lines in the Spectrum of a Star Balmer Lines in the Spectrum of a Star
Computer-automated DNA sequencing using the chain-termination (Sanger) method Computer-automated DNA sequencing using the chain-termination (Sanger) method
Video: Mycobacterium tuberculosis: Drug Resistance and Natural Selection

For a complete list of videos, visit our video library