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Sample Case Study paper on Questions Answered

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Sample Case Study paper on Questions Answered
Price Fixing:

This is one of the anti-competitive activities that anti-trust laws regulate to ensure consumer protection. Price fixing is when competitors come to an agreement to lower, raise or stabilize the price of a product or service uniformly. Take the example of three bus companies working in one route. It is price fixing when they agree and decide to make the prices from Kuala Lumpur to Meca, fixed at $40. Each bus company should have a reason for setting a specific price. One with a lower cost of production can, for example, set the prices lower than the rest to attract more customers. When they all agree to set it at $40, it is an illegal business practice known as price fixing (Gershon, 2009).

 

Horizontal Price Fixing:

Competitors can fix prices at different levels. When a common price is agreed upon between same level competitors, it is referred to as horizontal price fixing. An example is when all grocery stores around a specific area decide to set the price of a kilogram of tomatoes at $6 for everyone. The grocery store owners or dealers can decide to fix the prices of more than one commodity (Gershon, 2009).

 

Vertical Price Fixing:

This occurs when parties in different levels of distribution agree to fix the price of a commodity. An example is the case of a bread production, supply, and sales. The parties involved in the production stage, packaging, distribution and retailing can come together to fix the price of bread at the retail level. When the baker, the distributor, the retailer and all others involved in the production and supply cycle agree on a specific price, then it is vertical price fixing (Gershon, 2009).

 

Trying Agreements:

Trying agreements is when a seller uses one product to condition the sale of another. These two products have to be related. An example is a case where an automobile seller, ties the sale of a vehicle to an engine. In such cases, the tying occurs when the tying product is very valuable and may be on high demand. The seller takes this opportunity to tie a less quality product to it (Gershon, 2009).

 

Predatory Pricing:

It is an act of reducing the prices below the market price until a competitor is unable to maintain the competitive standard. An example is a case where hotels and restaurants, decide to set the accommodation services’ prices so low, that it drives the other hotels out of business over time (Gershon, 2009).

 

Case 1: “Monsanto Co. v. Geertson Seeds Farms”

  1. The Court’s decision does suggest that they can bring a lawsuit if they find the deregulation against the NEPA rules, but it also does not prevent them from filing any lawsuit later. In the ruling, the Supreme Courts indicated that both parties had a standing. The District court may have erred in giving an injunction before conducting a full EIS, but Monsanto, the owner of the copyrights to the genetically engineered seeds was prohibited from licensing or selling the RRA. The Supreme Court also established that there was reasonable likelihood that the RRA could be detrimental to the environment as argued by the District Court. Because of this probability and he injunction that prevents Monsanto from selling the product, it may not be possible for the farmers who planted 220 000 acres of RRA to bring another lawsuit. Already, the Court’s indication that; the deregulation of RRA would mean the alfalfa crops will be infected with a harmful gene, should be a warning enough to prevent them from using the RRA before the assessment process is complete (Monsanto Co. v. Geertson Seeds Farms).
  2. Justification of deregulation of a genetically engineered crop:

The plaintiff must satisfy the following factors. There must be existence of inadequacy of legal remedies, proof of lack of injury to the public interest in case such an injunction is issued, proof of irretrievable harm in case the deregulation succeeds, and balance of hardships that the plaintiff may experience (Monsanto Co. v. Geertson Seeds Farms).

 

Case 2: “Lavie v. Procter and Gamble Co”
  1. The advertisement gives both the impression that it cannot cause ulcer, and it can. Gentle means, it may not be corrosive compared to Aspirin, and if Aspirin triggers ulcers, then the message that Alvene is gentler only means that it is different from Aspirin and would not cause ulcers. I would also not interpret it to mean that it does not cause an ulcer. I would think that it may still have the components of ulcers even if it is gentler. It may be gentler, but it has to show me if it triggers or does not trigger ulcers. This knowledge should be provided for easy differentiation.
  2. Why advertisers are not required to ensure that their advertisements do not mislead the most gullible customers.

Because the false advertising law or the UCL law, judges an advertisement based on a specific standard for the general public, that is; the ‘reasonable consumer’ standard. Unless the product is meant for the gullible group of people, the advertisers should assume that its consumers are reasonable (Lavie v. Procter and Gamble Co).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Gershon, R. A. (2009). Telecommunications and Business Strategy. London: Routledge.

Lavie v. Procter and Gamble Co

Monsanto Co. v. Geertson Seeds Farms

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