One of the reasons it is against the anti-trust laws to do this is because it places large businesses like Wal-mart and Microsoft at an unfair advantage because they have enough capital to get through lean times caused by below cost pricing long enough to drive the small business competitors out of business.
Many states have laws against selling gasoline below a legal limit that is set by the government for that purpose.
Several years ago when the price of gas was on the rise companies began realizing that if they offered gas at a reduced rate it would lure consumers into their business and allow them to purchase other goods.
One example was suit filed against Kroger in which the store was accused of violating antitrust laws when it priced its gas below cost.
The store argued that it was not doing so to drive other gas stations out of business but to entice consumers to stop for gasoline and then come into the store and purchase groceries.
Because of the impact the reduced gasoline prices was having on surrounding suppliers of gasoline the stores were ordered to raise their per gallon price to meet or exceed the minimum standards set by law.
Kroger's defense was that it was one of the only ways it could be competitive among the many discount grocery stores in the area.
New York recently went through an anti-trust issue with gasoline sales by ordering a reduction in competitive stations opening in areas where there was already a saturation of stations (Proposed New York Gasoline Legislation Could Harm Consumers, Says FTC Staff (http://www.ftc.gov/opa/2002/08/nygas.htm).
Consumers argued against this mandate as they felt the additional stations would bring healthy competition and drive the prices down that the consumer would pay.
The federal antitrust laws deal specifically with below-cost pricing that has a dangerous probability of leading to monopoly. The FTC, the Department...
In essence this model of knowledge sharing creates an egalitarian benefits model where each side of the information transaction benefits. Conclusion Anti-globalization advocates argue that this approach to creating business value chains and relationships reduces economic growth to transactions where the 3rd world nations often receive little if any value for their efforts. Exacerbating this is the fact that transactions are king, relationships are not valued and trust suffers. What needs
Instead they are being left in family homes, alone while family members work to pay the bills. One of the problems with government regulations and business is that often times the regulation applies across the board with little regard to the size of the business or the size of the population that the business serves. To implement a regulation to businesses across an entire geographic area can harm the business in
Anti-discrimination laws are enforced and companies are rated by their policies of tolerance. Homophobia is gradually being extricated from the American consciousness and so is sexism. The media plays a major role in how the American consciousness changes and those changes have an indelible impact on the character of the American Dream. Thomspon also notes that Thrice was well-loved by his teammates. The community rallied in support of Thrice and
Hisory of Palliatve Care Palliative Care Palliative Care Methods Palliative care entails assisting patients get through pain caused by different diseases. The patient may be ailing from any diseases, be it curable or untreatable. Even patient who are sick and almost passing away will need this care. Palliative care has characteristics that differentiate it to hospice care. The key role for palliative care is to help in improving the existence of someone and
online retailing operates, what kind of problems they face and the kind of environment they operate in. The author has also focused on Asian online retailing and special focus on Hong Kong online retailing. It has 22 sources. Access of basic necessities of life has followed the conventional method of buying and selling. This pattern changed in the last decade with the emergence of information technology age. When consumers have
Antitrust and Intellectual Property Antitrust Law Remedies in Intellectual Property Cases In any research paper it is important to first define the terms used prominently in order to make sure that the reader understands what is being said. In this case, the two terms that require definition are antitrust and intellectual property. According to a definition from Cornell University Law School "Trusts and monopolies are concentrations of economic power in the hands
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now