Gorhan Construction, Brighton Bros., and Tirenn Construction ...

[sammy]

Gorhan Construction, Brighton Bros., and Tirenn Construction agreed that on three upcoming projects, Gorhan would bid lowest on one, Brighton would submit the lowest bid on the second project, and Tirenn would submit the lowest bid on the third project. In this way, they would each be assured of work for the upcoming season. This behavior
 A)is legal and acceptable practice in the construction industry to spread work more evenly.
 B)is a per se violation of the Sherman Act.
 C)is a rule of reason violation of the Sherman Act.
 D)violates ethical, but not legal, standards.

Question 2

The USTR has requested your advice on whether the following are legal pursuant to the GATT. Please explain each of your answers. Scenario An across-the-board reduction by the United States in the corporate tax rate.

[orangecrush]

Answer to Question 1

B

Answer to Question 2

Legal. This is not a subsidy as the tax reduction was not specific to a particular enterprise or industry.

[sammy]

Thank you

[orangecrush]

No problemo