Week 6 Discussion 1 & 2 Response
Week 6 - Discussion 1 Response
Guided Response: Respond to at least two of your peers’ posts (as well as any comments made by your instructor) in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words. Support your position by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum.
Below there are two of my classmate’s discussion that needs I need to response to their names are James Varughese and Ijeoma Ibekwe discussions
What is the rule of reason and how does it differ from the per se rules?
The rule of reason is a legal approach to evaluate a contract to identify if it unfairly restricts the trade; it focuses on the state of competition by analyzing product, market, and anticompetitive effects ( Bona Law PC, 2020). On the other hand, the per se rule approach does not involve the analysis of effects on the market or the intention of the business practices. Additionally, per se rule only focuses on if anticompetitive conduct exists ( Bona Law PC, 2020). The major difference between the rule of reason and per se rules is the extend of analysis conducted in anticompetitive practices during the ruling (Cornell Law School, 2020).
Should the rule of reason have been applied in this case? Explain why or why not.
The rule of reason should not be applied in this case. I agree with the trial court ruling that both Coed Theatres and Superior Theatre Services are guilty of a per se violation of the Sherman Act and refusing them the option for the rule of reason. Testimonies by the customers have established the fact that both agencies had anticompetitive agreement to benefit their business which is against customers interests
Reference
Bona Law PC. (2020, April 1). Retrieved from Antitrust Standards of Review: The Per Se, Rule of Reason, and Quick Look Tests: https://www.businessjustice.com/antitrust-standards-of-review-the-per-se-rule-of-reason-and-quic.html
Cornell Law School. (2020, April 1). Retrieved from The Per se Rule v. the Rule of Reason: https://www.law.cornell.edu/wex/antitrust
Langvardt, A. W., Barnes, A. J., Prenkert, J. D., McCrory, M. A., & Perry, J. E. (2019). Business law: The ethical, global, and e-commerce environment (17th ed.). New York, NY: McGraw-Hill Education. Retrieved from https://www.vitalsource.com
What is the rule of reason and how does it differ from the per se rules?
Rule of reason is a judicial doctrine of antitrust law which says a trade practice violates the Sherman Act only if the practice is an unreasonable restraint of trade, based on economic factors (USlegal; 2019). If the court concludes that the challenged activity had a significant anticompetitive effect that was not offset by any positive effect on competition the activity will be held to violate § 1 (Langvardt.,2019).
However, on the other hand, if the court concludes that the justifications advanced by the defendant outweigh the harm to competition resulting from the defendant’s activity, there is no § 1 violation (Langvardt.,2019).
Per Se Rule is a type of antitrust analysis used to determine the legality of agreements (written or oral) between competitors (T. Reuters; 2020). Under the per se rule, certain categories of agreements are presumed to violate antitrust laws, regardless of other factors such as business purpose or competitive benefits (T. Reuters; 2020). Per Se Rule provide reliable guidance to business and it also simplifies lengthy antitrust litigation, because if per se unlawful behavior is proven, the defendant cannot assert any supposed justifications to avoid liability (Langvardt.,2019).
Should the rule of reason have been applied in this case? Explain why or why not.
In this case between Coed and Superior the rule of reason should not have been applied because the two companies entered into an agreement not to solicit one another’s clients and this was done mutually. Furthermore, the president of Coed testified that at a luncheon meeting he attended with officials from both firms, the presidents of both firms said that it would be in the interests of both firms to stop calling on each other’s accounts. As a result of this the rule of reason should not apply in this case.
REFERENCE:
Langvardt, A. W., Barnes, A. J., Prenkert, J. D., McCrory, M. A., & Perry, J. E. (2019). Business law: The ethical, global, and e-commerce environment (17th ed.). Retrieved from https://www.vitalsource.com (Links to an external site.)
Reuters; (2020). Per Se Rule. Retrieved from: https://uk.practicallaw.thomsonreuters.com/8-383-6381?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1
(“Rule of Reason” 2019). Rule of Reason Law and Legal. Retrieved from https://definitions.uslegal.com/r/rule-of-reason/