Business Law II

Please answer question 5.

CHAPTER 42 Antitrust La 903 5. M of crosoft Corporation includ its Internet-browsing software (l nternet the es original equipment manufacturers at no extra cost. In order to sell the operating system, arrangement legal? were prohibited from disassembling the package. ls this 6. The National Collegiate Athletic Association (NCAA) limits the number of basketball an institution may have to four (one head. two assistants, and one entry-level) Moreover, the NCAA limits the salary of the entry-level coach to $32,000. A group o entry-level coaches challenge the compensation limit as a violation of Section 1 of the Sher- man Act. The NCAA states that some horizontal restraints are necessary in order to pro- 7. mote competition among their membership. Is the restriction legal? Why? Fall City Brewery sells its beer to a variety of distributors located throughout the mid-west ern portion of the United States. Fall City prices its beer based on each state, recognizing that competitors in the market change from state to state. Indiana distributor who sells An in Evansville must pay a higher price than a Kentucky distributor who sells beer in the town of Dawson. What defense might Fall City raise? Why? ent and Beech-Nut I5 percent are the three firms that dominate the baby food market. However, Heinz was the largest producer of baby food in the world. Across the United States, approximately 90 percent of supermar- kets carry Gerber products. Heinz, products appeared in 40 percent of the stores generally in the Northeast, South, and Mid-West. Beech-Nut also appears in 40 percent ofthe stores, mostly in New York New Jersey, California, and Florida. Heinz and Beech-Nut wish to merge. Discuss 9. Von's Grocery Company is the third largest grocery chain in the Los Angeles market with sales. wishes to merge with the sixth largest firm, which has 2.8 percent of 4.7 percent sales. Is this legal? Why? manufactured facsimile 10. Nippon Paper Industries Company (NPIC), a Japanese company, in the market in Japan. cials of that company met with other competitors (fax) paper. the price,of thermal fax paper throughout the United States. for the purpose of fixing Would United States antitrust lawapply? Why? Check out our website www.bvtstudents com mmission has prepared a primer on antitrust ide/index.html /bc/compgui ftc.gov for free chapter-by