Rule of Reason
Horizontal Price Fixing
Firms competing with another with the same product and market agree to fix prices.
Vertical Min. Price Fixing
Manufacturers tells its customers (retailers etc.) that products can’t be sold under a certain price (price floor)
Vertical Max. Price Fixing
Manufacturers tells its customers an item can’t be sold over a certain price (Price ceiling).
Horizontal Exchange of Information
The trading or sharing of information between companies that are competitors of one another
Conspiracy to Restrain Information
The ability of a group to keep certain information away from others that is not price oriented.
Horizontal Market Division
When a marketplace is divided among competitors in a local system that creates a monopoly (likely geographic)
Vertical Market Constraints
When the manufacturer of a product tells its customers where it can sell the product or who it can sell to
Horizontal Group Boycotts
A group conspires to harm another business or to not deal with other competitors to discipline for future actions.
Unlawful discrimination by selling a similar good to different customers at a different price to likely gain a monopoly.
Utah Pie Co.
*Tie In sale/Tying Arrangement
Where the sale of one product is predetermined that another product must also be purchased as well.
Per se with a twist. Really, Rule of Reason.
*Exclusive Dealing Contracts
An agreement in place in which the seller of product tells the buyer they can buy the seller’s competitor’s product.
When businesses, either two or more, decide to come together to create a new business (likely in the same industry).