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Author Question: Quickness Computer, Inc is a manufacturer of computers. A Hollywood star indicated on national ... (Read 106 times)

CBme

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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

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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.


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