Author Question: What tests do courts use to determine whether or not an antitrust violation has occurred? What ... (Read 39 times)

Mr.Thesaxman · **on:** Aug 3, 2018

What tests do courts use to determine whether or not an antitrust violation has occurred?

What will be an ideal response?

Question 2

Legal fees must be reasonable and should be explained to the client in advance.

Indicate whether the statement is true or false

heinisk01 · **Reply #1 on:** Aug 3, 2018

Answer to Question 1

There are three primary tests that courts use to determine whether or not there is a violation of antitrust laws: per se rule, rule of reason, and quick-look analysis. When a court utilizes the per se rule analysis to determine whether there has been a violation of antitrust law, any labor practices that are inherently unreasonable restraints of trade will be invalidated. In Northern Pacific Railway Co. v. United States, 356 U.S. 1 (1958), the Supreme Court stated that there are certain agreements or practices which because of their pernicious effect on competition are conclusively presumed to be unreasonable and therefore illegal. Price-fixing is a per se violation of antitrust laws. Under the rule of reason analysis, a court examines the alleged anticompetitive practice to determine whether or not it is reasonable. Some restraints may be necessary as a legitimate business practice in order to stay in business. The Supreme Court in California Dental Association v. F.T.C., 526 U.S. 756 (1999) upheld the FTC's use of another form of antitrust analysis known as the quick look or structured rule of reason approach. In recent years courts have fashioned an abbreviated or quick-look rule of reason analysis designed for restraints that do not fall within the narrow categories of restraints deemed per se unlawful, but that are sufficiently anticompetitive that they do not require a full-blown rule of reason inquiry either.

Answer to Question 2

True