Sherman Act Refusal to Deal

The video discusses the Sherman Act, focusing on anti-competitive behaviors like boycotts by market competitors. It explains how intent plays a role in determining whether actions are evaluated under per se illegality or the rule of reason. Examples illustrate how collaborations can be legal if they have pro-competitive justifications, despite potential anti-competitive effects.

What is the primary focus of the Sherman Act?

• To promote international trade

• To support small businesses

• To prevent anti-competitive practices

• To regulate environmental policies

Under what condition would a collaboration between competitors be evaluated under the rule of reason?

• When it is related to environmental issues

• When there is no intent to harm competition

• When there is intent to create a monopoly

• When it involves international trade

What is a key factor in determining if a boycott is anti-competitive?

• The location of the companies

• The intent to harm a competitor

• The number of employees affected

• The size of the companies involved

What is an example of a pro-competitive justification for a collaboration?

• To reduce employee wages

• To eliminate a competitor

• To increase prices

• To ensure a steady supply of goods

What distinguishes a per se illegal action from one evaluated under the rule of reason?

• The industry sector

• The geographical location

• The presence of a market justification

• The number of companies involved