Final Essay There are hundreds of different corporation crimes out there, that corporations are doing daily. However, the main corporation crime that will be focused on is that of the anti-trust offense. The anti-trust offense, is a deterrent to the competition to sure the far economic system with other corporations. Instead the anti-trust offense amongst the other corporations to sell goods at a reasonable price is a restriction. In theory this completive against each other, so that it ensures that a consumer is getting the best prices possible. Unfortunately, when a corporation uses this tactic it hurts the entire economic system. Furthermore, anti-trust acts are designed to promote and protect the competition, against the anti-trust offenses …show more content…
Here is the U.S. competition is the backbone of US economic policy (Maurice, 2013). Everywhere there needs to be some type of competition. According to the Journal of antitrust enforcement, “every US executive agency, for example, is legally required to have an advocate for competition (Maurice, 2013). That was when the Sherman act was created, to ensure the free and unfettered competition as the rule of trade (Maurice, 2013). Furthermore, allocation of our economic resources, the lowest prices, the highest quality and the greatest material progress, while at the same time providing an environment conductive to the preservation of our democratic political and social institutions (Maurice, 2013). Furthermore, this offense is hard to catch because of the ever changing of the economic …show more content…
The first is that of price fixing, price fixing occurs when the competitors agrees on a price at which goods or services should be sold (Payne, 2016). For an example if there are mechanics in one area, that make an agreement of $60.00 for an oil change. That would be horizontal price fixing, because in that area a person would have to pay that $60.00 where ever they go for their oil change. The second is market allocation, this is where competitors agree to divide markets according to territories, products, goods, or services (Payne, 2016). The best example for these is the competition with Bomgaar’s and Murdock’s. As an employee for over three years at Bomgaars I heard that the Bomgaars family has what they call a “gentleman agreement” to never be in the same town as Murdock’s. So, Bomgaars is in Loveland and Murdock’s will never make a store in Loveland. Concerning, Murdock’s is here in Greeley, so there will never be a Bomgaars in Greeley, because of this “gentleman’s agreement”. Work
United States has several laws that ensure that competition among businesses flow rely and new competitors get free access to the market. These laws intend to ensure fair and balanced competitive business practices. However, there are times when some businesses will do anything to gain competitive edge. USA has strong antitrust laws that prohibit fixing market price, price discrimination, conspiring boycott, monopolizing, and adopting unfair business practices. The history of Antitrust laws goes back to 1890 when Congress passed Sherman Act. In 1914, Congress passed two more acts: Federal Trade Commission Act, and Clayton Act. With some revisions, these three acts are still core antitrust acts.
Competition is seen daily amongst Pepsi and Coca-Cola. In most cases individuals even compare the two just because they are major competitors that are always creating and innovating new ideas. The key to competition always making sure there is a plan to become successful. Businesses have to always have to stay ahead of the game. The businesses must always be put into place and remain one step ahead of the competitor. One business may target only the elderly generation. While on the other hand another business is targeting the generation to come or the present generation. Children may not like what the older generation
The changes surrounding contemporary businesses have been noted to have increased in their frequency, direction and overall strength that have their long term implications on strategic management and investment within these industries (Barreto, 2010). The free market hypothesis has argued that optimum allocation of resources within an economy can be achieved when there is no interference from external third parties to develop effective and efficient markets (Bremmer, 2010). In order to achieve this high degree of market effectiveness and efficiency, governments around the world pursue a competition development strategy across the industries so that value maximisation can be achieved for customers and the economy. Although the economic literature has noted significant weaknesses associated with the monopolistic industry dynamics, however it has become apparent that in practice it can become an important value adding structure to achieve certain socio-economic outcomes (Cowling & Tomlinson, 2012). The aim of this essay is to critically review and discuss different arguments that have presented in favour of permitting monopoly in contemporary business environment. In order to achieve this aim, the essay uses arguments from diverse schools of thoughts and appraises their outcomes with the help of examples and case studies from practice.
Anti-trust laws are laws which prohibit anti-competitive behavior and unfair business practices. Their purpose is to make sure that businesses and consumers cannot be abused by powerful firms that hold or wish to hold a monopoly in the market. They also take into account certain ethical standards, and therefore can be considered quite subjective. Many specific strategies are outlawed by anti-trust laws, including price fixing (agreement on prices of uniform goods or services), predatory pricing (setting a low price in order to knock off competitors), and vendor lock-in (virtually forcing a consumer to buy from a certain supplier).
He analysed types of violations of laws (called decisions) including restraint of trade, misrepresentation in advertising, infringement of patents, trademarks, and copyrights, unfair labour practices, financial fraud and violation of trust. Sutherland’s (1949) findings were outstanding. He found a total of 980 adverse decisions against the 70 corporations. Of the 980, 583 were rendered by courts and 397 by administrative agencies (Sutherland, 1949). Furthermore, of the 70 corporations, 30 were either illegal in their origin or began illegal activities immediately after their origin, and 8 were probably illegal in origin or in initial
Antitrust law attempts to ensure that market competition is protected from an organization or cartel with a monopoly on a given product. Much of antitrust enforcement tries to create a balance between the benefits of coordination and consolidation, such as efficiencies that reduce price or improve quality, and the detriments of market power that can lead to higher prices or reduced innovation.
Why does white collar and corporate crime tend to go undetected, or if detected not prosecuted? White collar and corporate crimes are crimes that many people do not associate with criminal activity. Yet the cost to the country due to corporate and white collar crime far exceeds that of “street” crime and benefit fraud. White collar and corporate crimes refer to crimes that take place within a business or institution and include everything from tax fraud to health and safety breaches. Corporate crime is extremely difficult to detect for many reasons.
After a case like Enron, it is easy to be pessimistic about the prospects for change that could effectively prevent corporate crime. The ideas presented in this paper suggest that regulatory agencies can play a fundamental role not only in encouraging compliance with the law, but also deterring corporate crime. It is clear that corporate crime has substantial effects on its victims, yet corporations or their executives are not always held accountable for their actions. Compared to criminal prosecutors, regulators have more knowledge and resources to monitor corporations and potential offenders better understand the penalties associated with regulation. For these reasons, the power of regulatory agencies to monitor business practices should be increased.
For example, it is extremely important for many firms to be involved in order to prevent and individual firm from profiting only. By having many firms we assure that only a small fraction of the total amount in the market is either sold or bought. Not only is having many buyers and sellers important, providing a standardized product, a commodity, is essential for this market type. A commodity will guarantee that the good or service being sold is roughly the same across all suppliers. Being highly mobile is another characteristic that a perfectly competitive firm must have. The firm needs to be able to relocate if suitable profits are not met. Full disclosure of price and availability is also crucial in a perfectly competitive firm. Buyers and sellers need to be aware of costs of products and services in order to secure that the deal they are obtaining is the best possible. In this type of market the barrier of entry is very low. Basically in order to enter and become a perfectly competitive firm the investor usually only requires sufficient financial capital and a license or permit. Perfectly competitive firms are price-takers. They are care price-taker characterized by accepting the price the market sets on their product or service, and have no control over the change of
Some people in America believe that competition does little in forming better products and may even hurt the quality of the product;however, they are incorrect competition helps form better processes as well as helps the quality. If America got rid of competition there would be no need for better products or a need for people to try and improve products because there would be nothing to drive them. America has used competition to drive us to better quality in the past as well as the present whether it is SpaceX vs Blue Bird or Chevy vs Ford we have always competed to try and gain an upperhand in quality as well as production time. Finally the quality of American products will continue to rise and improve as as long as competition is allowed in here.
In simple terms oligopoly refers to ‘competition among the few’. It is an economic situation where there is a small number of firms, selling competing products in the market. The oligopoly exists in the market, where there are 2 to 10 sellers, selling identical, or slightly different products in the market. According to experts, oligopoly is defined as a situation when the firm sets its market policy, as per the anticipated behavior of its
Firms within the fast food industry fall under the market structure of perfect competition. Market structure is a classification system for the key traits of a market. The characteristics of perfect competition include: large number of buyers and sellers, easy entry to and exit from the market, homogeneous products, and the firm is the price taker. Many fast food franchises fit all or most of these characteristics.
According to US Legal, “corporate crime means crimes committed either by a business entity or corporation, or by individuals that may be identified with a corporation or other business entity (unknown, 2017).
Monopolies are an important piece of the economy and are needed in some situations. There are many kinds of monopolies and they all work differently. These companies create barriers stopping new groups from entering the market and create their own prices. Granted their power is kept in check by our government meaning they are not in complete control. Monopolies may seem like a dangerous powerful group of businesses but in reality they do not have as much power as some may
Miller, R. (2012). Monopolistic Competition: The Micro View (17th ed. pp. 555-572). Boston, MA: Addison-Wesley.