Friday, 7 March 2014

Attorneys for Eastman Kodak argued in front of the U.S. Supreme Court to defend the company against...

Attorneys for Eastman Kodak argued in front of the U.S. Supreme Court to defend the company against charges levied by several independent firms that provide service for machines sold by Eastman Kodak. At issue was a decision by Kodak to limit the availability of replacement parts to these firms, making it more difficult for them to compete against Kodak in servicing Kodak machines. The suit alleged that Kodak unlawfully tied the sale of service for its machines to the sale of parts and, therefore, unlawfully monopolized and attempted to monopolize the sale of service and parts for such machines. Under which act do you think Kodak was charged?
2. Social Dynamo Corporation earned profits last year of $49 million on sales of $500 million. During the same period, its major competitor—EIO Corp.—enjoyed sales of $490 million and earned profits of $52 million. Currently, Social Dynamo is negotiating a deal in which it would acquire the assets of EIO in a transaction Wall Street values at $120 million. A successful merger between the two companies is expected to raise prices in the market by 2 percent. Is Social Dynamo obligated to notify the U.S. Justice Department and the Federal Trade Commission of its merger intentions? Explain. FOR MORE INFORMATION ON THIS TOPIC CLICK HERE

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