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Securities & Antitrust Law Flashcards

Securities & Antitrust Law Flashcards
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Securities Act of 1933
A U.S. act that provides regulation for the sale of securities. It ensures that companies provide truthful information and offer full disclosure of finances.
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The Rule of Reason

A method for courts to ascertain the presence of horizontal and vertical agreements, such as proof of restraints that could or will lead to market domination

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Monopolies
A dangerous agreement where a specific business has complete market domination
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Tying Agreements
This type of vertical agreement happens when businesses sell products in a way that requires consumers to buy extra products that they don't necessarily want.
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Market Allocations
A type of horizontal agreement that involves competing companies agreeing not to sell to each other's customers, creating individual monopolies in different areas
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Price Fixing
This horizontal agreement occurs when competing businesses work together to control market prices, which can lead to consumers paying higher prices for goods.
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Boycott
An illegal vertical agreement that happens when businesses band together to stop buying or using a different company's products
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Sherman Antitrust Act of 1890
An act that was designed to limit and dismantle monopolies and cartels that were limiting fair business competition. Vertical and horizontal agreements, such as price fixing, violate this act.
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Antitrust Law
These statutes were created in order to regulate fair competition between business owners and to ensure consumers are protected.
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Flashcard Content Overview

You can access these flashcards in order to review the Sherman Antitrust Act of 1890, the Clayton Antitrust Act and the Securities Act of 1933. Focus on the horizontal and vertical agreements these laws were designed to combat, such as monopolies, price fixing, boycotts, typing agreements and market allocation. The Rule of Reason that courts use when considering antitrust issues will also be covered. Additionally, you'll be able to go over both exempt and non-exempt securities.

Front
Back
Antitrust Law
These statutes were created in order to regulate fair competition between business owners and to ensure consumers are protected.
Sherman Antitrust Act of 1890
An act that was designed to limit and dismantle monopolies and cartels that were limiting fair business competition. Vertical and horizontal agreements, such as price fixing, violate this act.
Boycott
An illegal vertical agreement that happens when businesses band together to stop buying or using a different company's products
Price Fixing
This horizontal agreement occurs when competing businesses work together to control market prices, which can lead to consumers paying higher prices for goods.
Market Allocations
A type of horizontal agreement that involves competing companies agreeing not to sell to each other's customers, creating individual monopolies in different areas
Tying Agreements
This type of vertical agreement happens when businesses sell products in a way that requires consumers to buy extra products that they don't necessarily want.
Monopolies
A dangerous agreement where a specific business has complete market domination
The Rule of Reason

A method for courts to ascertain the presence of horizontal and vertical agreements, such as proof of restraints that could or will lead to market domination

Securities Act of 1933
A U.S. act that provides regulation for the sale of securities. It ensures that companies provide truthful information and offer full disclosure of finances.
Exempt Security
This type of security has minimal risk because it is backed by the government and may be tax-exempt. Some examples include insurance, government securities and non-profit securities.
Non-exempt Securities
Securities of this type carry high risks for potential investors so they must be registered with the Security Exchange Commission.
Securities
Buying these allows an investor to gain a degree of ownership in a company.
Bid Rigging
Businesses agree to work together to manipulate the market - one business places a low bid on a job while others place high bids, ensuring the lowest bidding company gets the job
Clayton Antitrust Act
This act made price discrimination and exclusive deals illegal. Additionally, it provided regulations for the organization of labor unions, mergers and private lawsuits.
Price Discrimination
Occurs when a business doesn't charge the same prices to all customers
Exclusive Deals
A company that creates a complementary product that only they can provide is using this kind of deal
Horizontal Agreements
These agreements occur when businesses that should be competing with one another work together to manipulate their competition in the market.
Vertical Agreements
In this kind of agreement, sellers make an agreement with buyers that prevents the buyers from making purchases from different, competing manufacturers.

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