DiscussWhat are the exemptions and defenses available under the Competition Act?
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DiscussWhat are the exemptions and defenses available under the Competition Act?
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- What strategies can small-scale producers adopt to compete with corporations that have very large advertising budgets and brand loyalty?How is a domestic corporation different from a foreign corporation and an alien corporation?A few years ago, a prominent pharmaceutical company was accused by the Justice Department of meeting with its competitors and entering into an explicit agreement with these competitors to fix the price of a commonly prescribed drug. (a) What is the difference between horizontal price fixing and vertical price fixing? Was this pharmaceutical company accused of horizontal price fixing or of vertical price fixing? Explain your reasoning. (b) Would the business practice that the pharmaceutical company was accused of be considered per se illegal or would the legality of this practice be judged by the rule-of-reason criterion? If the case had gone to trial, would “plus factors” have been considered to determine the trial’s outcome? Explain your reasoning. (c) Use the course material on the free-market economic system to explain why there are governmental laws against horizontal and vertical price fixing.