100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
SPM 4723 Exam 3 || Already Passed. $11.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. SPM 4723
  4.  
  5. SPM 4723

Exam (elaborations)

SPM 4723 Exam 3 || Already Passed.
 0 purchase
  • Course
  • SPM 4723
  • Institution
  • SPM 4723

What is antitrust law? correct answers a) A field of law used to create efficiency in economic markets How does antitrust create efficiency? correct answers By promoting fair competition in business (1) When there is fair competition in business, prices go down and quality goes up because in or...

[Show more]

Preview 2 out of 11  pages

Document information

  • November 2, 2024
  • 11
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • SPM 4723
  • SPM 4723

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

SPM 4723 Exam 3 || Already Passed.
What is antitrust law? correct answers a) A field of law used to create efficiency in economic
markets

How does antitrust create efficiency? correct answers By promoting fair competition in business
(1) When there is fair competition in business, prices go down and quality goes up because in
order to stay profitable businesses have to have the best products at the lowest process
(2) Businesses are also forced to compete with each other to hire the best labor , which drives up
wages and benefits because workers will join the company that offers the most

Businesses—including sports entities—compete with each other for: correct answers i)
Customers and Market Share
ii) Cheaper/better access to supplies / resources
iii) The best/ cheapest employees

The Sherman Act of 1890 Section 1 correct answers Forbids contracts, combinations, or
conspiracies that unreasonably restrain competition (if more than one company is involved) -->
popular in sport
(1) Classic example: Price Fixing, where businesses work together to set the price of a particular
product, supply, or labor at an industry-wide cost
(2) This means that they do not compete with each other to have the lowest price product
offering or the highest offered price for the best supplies or labor

The Sherman Act of 1890 Section 2 correct answers Prohibits monopolization of trade and
commerce (one company involved). --> not often in sport
(1) What is a monopoly?
(a) Exclusive control of a supply or market
(b) "Mono" = "One," so a "monopoly means that one company owns everything in a particular
industry
(i) Very difficult to prove

1) Antitrust Enforcement correct answers Antitrust violations can be enforced by the
government, by the Federal Trade Commission (FTC) and/or the Antitrust Division of the
Department of Justice
i) Criminal penalties for antitrust violations for individuals can range from minor fines to up to
$1 million in fines and 10 years in prison
a) Antitrust violations can also be enforced in Civil Lawsuits

Per the Clayton Act of 1912 correct answers i) proven civil damages from antitrust violations are
automatically tripled to discourage antitrust violations and encourage antitrust lawsuits

Most antitrust issues in sport are enforced using _________ correct answers Section 1 of
Sherman Act
a) Why? Individual teams are generally considered to be "separate" entities

, Applying Antitrust Law: Section 1 Judicial Analysis correct answers a) Courts look at three
elements when determining whether a business practice is a Section 1 violation
i) An agreement between 2 or more parties
(1) If there is just one party acting, there's only an antitrust violation if there's a monopoly (very
hard to prove)

Antitrust Activity affects affects interstate commerce correct answers (1) Why? The Sherman act
is a federal law based on the Commerce Clause
(2) If not (and this is a very low bar), go to state law
ii) The activity unreasonably retrains trade

What tests do courts use to determine if a business activity unreasonably retrains trade? correct
answers 1) Test 1: Per se Test
2) Test 2: Rule of Reason Test

Test 1: Per se Test correct answers (1) Restraints of trade that are inherently (obviously)
unreasonably are immediately invalidated
(a) For example, price fixing agreements are inherently unreasonable
(b) This has become a very low bar for businesses to clear

Test 2: Rule of Reason Test correct answers (1) If the restraint is not inherently unreasonable, the
court must balance the activities harms vs benefits
(2) Balance harm to competition vs. benefit of restraint
(3) The Rule o Reason Test creates shifting burdens of proof so courts can balance benefits vs.
harms (per Law v. NCAA, 1998)
(a) Step 1: The plaintiff must show that the defendants' activity has a substantially adverse effect
on competition
(b) Step 2: The defendant must give evidence that the alleged wrongful activity has pro-
competitive virtues
(c) Step 3: The plaintiff must prove that the challenged conduct is not reasonably necessary to
achieve those virtues

Certain activity has been ruled by statute and by the courts to be exempt from antitrust scrutiny:
correct answers a) Actions in professional baseball
i) Federal Baseball v. National League
b) "Single entity" Organizations
c) Amateurism (maybe?)
d) Union Activity
i) Per the statutory labor Exemption
e) Collectively Bargained Employment Terms
i) Per the non-statutory labor Exemption

MLB's Antitrust Exemption correct answers i) Federal Baseball Club v. National League (1922):
Professional baseball is not interstate commerce; therefore the Sherman Act cannot apply
ii) Flood v. Kuhn (1972): Professional baseball is interstate commerce but "By positive inaction
[congress] clearly eviced a desire not to disapprove legislatively"

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$11.49
  • (0)
Add to cart
Added