« previous next »

Author Question: Quickness Computer, Inc is a manufacturer of computers. A Hollywood star indicated on national ... (Read 178 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?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

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?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Pacific hagfish at 150 meters depth, California, Cordell Bank National Marine Sanctuary. Pacific hagfish at 150 meters depth, California, Cordell Bank National Marine Sanctuary.
The same star field photographed with (a) a ground-based telescope, which is subject to poor seeing The same star field photographed with (a) a ground-based telescope, which is subject to poor seeing
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
Investment in Computers as a Percentage of GDP, 1982–2009 Investment in Computers as a Percentage of GDP, 1982–2009
Video: Bond in biological molecules (Ionic, Covalent and Hydrogen bonds)/ How atoms bond?

For a complete list of videos, visit our video library