ANTITRUST Please leave the back row and the aisle seats empty. Music: Isaac Albeniz, Works for Piano (1889-1909) –Performed by Alicia de Larrocha (1959)

ANTITRUST• Please leave the back row and the aisle

seats empty.• Music: Isaac Albeniz, Works for Piano

(1889-1909)– Performed by Alicia de Larrocha (1959)

• Today’s Class:1. Introduction to the Course

2. Introduction to the Antitrust Laws

1. Introduction to the Course

a) Generally: Monopoly Stories v. Competition Stories

b) Mechanics

c) Themes


a) Generally: Comp. Stories v. Monopoly Stories

b) Mechanics: Classroom & Preparationi. Class Meetings & Attendance

ii. Course Page

iii. Reading

iv. Lectures

c) Themes



b) Mechanics: Graded Worki. Project

ii. Exam

c) Themes



b) Mechanics: Review & Exam Prepi. Review Problems

ii. Self-Quizzes

iii. Old Exams

c) Themes



b) Mechanics:

c) Themes

THEMES OF THIS COURSE

1. Power of Attorneys & Legal Academics to Change the Law

HISTORICAL TRENDS

• 1945-75: Anti-Big Business Ideology

• 1975-92: “Antitrust Revolution”

• 1992-2000: Line-Drawing and Some Counter-Revolution

• 2001-08: Furthering the Revolution



2. Use of Economics in Legal Argument




3. Conducting Complex Civil Litigation




3. Conducting Complex Civil Litigation

ATTORNEYS MATTER A LOT


a) Passage of the Statutesi. Text of the Sherman Act

ii. Background to Passage: US in 1890

iii. Passage of the Clayton Act & FTC Act

b) Practices/Concepts Covered by the Course

c) Enforcement: Goals & Brief History

15 USC §1. Trusts, etc., in restraint of trade illegal; penalty. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony…

15 USC §1. Trusts, etc., in restraint of trade illegal; penalty. Every contract,

combination … or conspiracy, in restraint of trade … is declared to be illegal.

15 USC §2. Monopolizing trade a felony; penalty. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony….

15 USC §2. Monopolizing trade a felony; penalty. Every person who shall monopolize, or attempt to monopolize … shall be deemed guilty of a felony….

15 USC §1. Trusts, etc., in restraint of trade illegal; penalty. Every contract,

combination … or conspiracy, in restraint of trade … is declared to be illegal.

= Thou Shalt Not Do Bad

Things in Groups

15 USC §2. Monopolizing trade a felony; penalty. Every person who shall monopolize, or attempt to

monopolize … shall be deemed guilty of a felony….

= Thou Shalt Not Do Bad

Things Alone



ii. Background to Passage: A. US in 1890: End of the Frontier

B. Productivity Gains & Business Cycles

C. Stated Purposes of Sherman Act




1890: Seeds of the Modern World

End of the Frontier

• Oklahoma Territory Created

• Idaho & Wyoming Admitted to Union

• Battle of Wounded Knee in S.Dakota; Sitting Bull killed;

• Cattlemen & sheepherders begin fighting b/c of lack of range space

Transportation

• US has 125,000 miles of RR in operation

• First electric underground railway opens in London

• Around the World in 72 Days

Introduced in 1890

• Aluminum saucepan

• Army-Navy football

• Corrugated cardboard box

• Daimler Motorworks

• Emily Dickinson’s Poems

• EverReady Batteries

• Electric chair

• Peanut butter

• Poll Tax and Literacy Tests

• Rock Creek Park, Yosemite & Sequoia Nat’l Parks

• Sunoco

• Tetanus & Diptheria Antitoxins

• US Weather Bureau

• Cy Young

Died in 1890: Vincent Van Gogh

Born in 1890• Agatha Christie

• Charles deGaulle

• Marjory Stoneman Douglas

• Dwight David Eisenhower

• Rose Fitzgerald Kennedy

• Groucho Marx

• Ho Chi Minh

















Stated Purposes of the Sherman Act

• stop theft (high prices)

• break power of trusts: better off w small businesses

• federalize common law of competition

Stated Purposes of the Sherman Act

• stop theft (high prices)

• break power of trusts: better off w small businesses

• federalize common law of competition

• Some see as empty political move



ii. Background to Passage: US in 1890

iii. 1914: Passage of the Clayton Act & FTC Act



Clayton Act: Key Language

…where … the effect … may be substantially to lessen competition, or to tend to create a monopoly.

Fed’l Trade Comm’n Act

1. Outlaws “unfair methods of competition”

2. Sets up FTC to enforce


a) Passage of the Statutes



SHERMAN ACT §1

(1) CONCERTED ACTION

(2) RESTRAINT OF TRADE

SHERMAN ACT §1(1) CONCERTED ACTION(2) RESTRAINT OF TRADE

- Per Se Rule- Rule of Reason

HORIZONTAL RESTRAINTSHORIZONTAL RESTRAINTS

• PRICE-FIXING

• MARKET DIVISION

• CONCERTED REFUSALS TO DEAL (BOYCOTTS)


• PRICE-FIXING

• MARKET DIVISION

• CONCERTED REFUSALS TO DEAL


• PRICE-FIXING

• MARKET DIVISION

• CONCERTED REFUSALS TO DEAL


• PRICE-FIXING

• MARKET DIVISION

• CONCERTED REFUSALS TO DEAL– NAKED BOYCOTT

– JOINT VENTURES

VERTICAL RESTRAINTSVERTICAL RESTRAINTS

• PRICE-FIXING

• MARKET DIVISION

• SALES ENHANCEMENT


• PRICE-FIXING

• MARKET DIVISION



• PRICE-FIXING

• MARKET DIVISION



• PRICE-FIXING

• MARKET DIVISION


ABUSE OF DOMINANT ABUSE OF DOMINANT POSITIONPOSITION

• (ATTEMPTED) MONOPOLIZATION

• TYING


• (ATTEMPTED) MONOPOLIZATION– MARKET POWER

– CONDUCT

• TYING


• (ATTEMPTED) MONOPOLIZATION

• TYING

MERGERSMERGERS

• HORIZONTAL

• VERTICAL

• CONGLOMERATE

MERGERSMERGERS

• CLAYTON ACT §7

• HART-SCOTT-RODINO

Recurring Concepts

• Defining Market/Market Power

• Per Se Rule v. Rule of Reason (§1 Only)


a) Passage of the Statutes



Possible Goals

• Balance Allocative & Productive Efficiency

• Protect Small Businesses– Concern re Survival: “Right” to Profit– Concern re Concentrated Political Power

• Distributive Justice: Prevent Overcharges to Consumers

• Business Ethics: Outlaw Offensive Commercial Practices

ANTITRUST Please leave the back row and the aisle seats empty. Music: Isaac Albeniz, Works for Piano (1889-1909) –Performed by Alicia de Larrocha (1959)

Documents

felony slide

law slide

revolution slide

lot slide

legal argument slide

course agenerally

exam cthemes slide

lectures cthemes slide