37.5 Sherman Act. Dentsply International, Inc., is one of a dozen manufacturers of artificial teeth for dentures
Question:
37.5 Sherman Act. Dentsply International, Inc., is one of a dozen manufacturers of artificial teeth for dentures and other restorative devices. Dentsply sells its teeth to twenty-three dealers in dental products. The dealers supply the teeth to dental laboratories, which fabricate dentures for sale to dentists. There are hundreds of other dealers who compete with one another on the basis of price and service. Some manufacturers sell directly to the laboratories. There are also thousands of laboratories that compete with one another on the basis of price and service. Because of advances in dental medicine, however, artificial tooth manufacturing has low growth potential, and Dentsply dominates the industry. Dentsply’s market share is greater than 75 percent and is about fifteen times larger than that of its closest competitor. Dentsply prohibits its dealers from marketing competitor’s teeth unless they were selling the teeth before 1993. The federal government filed a suit in a federal district court against Dentsply, alleging, in part, a violation of Section 2 of the Sherman Act. What must the government show to succeed in its suit? Are those elements present in this case? What should the court rule? Explain. [United States v. Dentsply International, Inc., 399 F.3d 181 (3d Cir. 2005)]
Step by Step Answer:
Business Law Today Comprehensive
ISBN: 9780324595741
8th Edition
Authors: Roger LeRoy Miller, Gaylord A Jentz