This website uses cookies to ensure you have the best experience. Learn more

Anittrust Laws Essay

1743 words - 7 pages

International Legal and Ethical Issues in Business

Abstract
In this assignment, we will review two scenarios of business practices and how these practices influence consumers. We will also explore antitrust laws and the fact that they were established to protect consumers and businesses from anti-competitive business practices.

The foundation of a dynamic economy is free and open trade. The benefits of lower prices and higher quality products or services is done through aggressive competition. To maintain this dynamic economy the United States Congress established and passed the first antitrust law. This law was named the Sherman Act of 1890. Two other antitrust laws ...view middle of the document...

All actions that violate the Federal Trade Commission Acts also Violates the Sherman Act according to the Supreme Court. (The Antitrust Laws, 2015)
The Clayton Act prohibits certain mergers and prohibits one person making decisions for businesses that compete against each other. These practices were not previously addressed by the Sherman Act. (The Antitrust Laws, 2015)
With this stated, most states also have their own antitrust laws that are enforced by the state attorney general or private citizens. (The Antitrust Laws, 2015)
The first example we will examine entails whether a multinational pharmaceutical company has attempted to minimize the impact of a generic competition to one of its most profitable prescription drugs.
A person may ask themselves why would a drug maker want to stymie generic drug competition? First of all we need to understand the ins and outs of a brand name drug. These drugs cost a lot of money to develop because they are developed from scratch. Usually a drug company applies for a patent which protects the generic form from being made for about 20 years. This gives the drug company time to recoup the cost of making the drug. (Meadows, 2003)
A generic drug is a drug that is the bioequivalent to a brand name drug in all concerns. It has the same dosage for, strength, and safety. The route of administration is also the same. The intended use is exactly the same as is the quality and performance characteristics. However, they are sold for a much lower price. These drugs can save a consumer anywhere from 8 to 10 billion dollars a year and even more when used by hospitals. Generic drugs do not cost as much to make because the development of these drugs have already been done by a brand-name drug company. (Generic Drugs, 2015)
The pharmaceutical industry has several legal barriers to entry. Barriers to entry just means that there are obstacles that prevent a company from entering a particular market with little cost. Probably the first and foremost effective barrier for a pharmaceutical company is the 20 year government patent. This patent protects the economic profits of the company spearheading the manufacturing of the drug. Generic drugs can only be made available after the development of a new innovative drug which requires a substantial investment. A new drug cost about $897 million to develop according to the FDA. (Meadows, 2003)
The second barrier is called a "first-mover" (brand loyalty advantage). Once the consumers take the drug and realizes it's beneficial effects they become loyal users not wanting to switch to a generic brand because they aren't sure how well it will work or if it will work at all. (Ettington, 2015)
The third barrier is for the company manufacturing the generic drug to be able to get their hands on the key chemical or active ingredient. The originating drug manufacturer may sell it but only if it is profitable to them. On the other hand, if the company...

Other Papers Like Anittrust Laws

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages a crucial role in the promotion of competitive and efficient commercial transport in all modes. Also the Economy is an important matter for NITL; transport accounts for approximately 5% of the national GDP, and has remained stable for the last decade. Political and Legal is the arena in which the League competes for attention, resources and a voice of overseeing the body of laws and regulations guiding the interactions between shippers and

Democratic Peace Theory

1852 words - 8 pages Intro: US Presidents have made it a goal during their term(s) in office to establish a good relationship with foreign countries and even try to improve upon existing connections with our allies. Some believe it is to prevent conflicts between the countries while others dispute that it is a threat assessment by the United States to pick and choose their friends and enemies. Preventing conflict between two democracies or countries that practice

Booker T. Washington

1621 words - 7 pages Bois was a university professor and the first African American to have received a doctorate from Harvard University.” Bu Bois and the NAACP list of demands included the end of the Jim Crow laws (southern segregation laws) and prejudice in the unions, equal opportunity to be educated and courts and public places. The opportunity to earn a dollar in a factory just now is worth infinitely more than the opportunity to spend a dollar in an opera house

Corn, Broccoli, Grass Or Balanced

2611 words - 11 pages About a century ago, there was not an epidemic of diet-related illness, a bizarre account of destroyed farmland, dead zones in our oceans created by chemical run-off spilling into the waterways, and there sure was not millions of people questioning the moral ethics of their diet. In the Omnivore’s Dilemma: A Natural History of Four Meals, the author Michael Pollan goes on a journey to investigate the sources of the nation’s food supply, for which

Related Essays

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages ). Lawmakers need to clearly define and identify a hate crime and require more severe punishments for those crimes because past and current laws are deficient, unequally applied, and too broad to be applied and enforced appropriately. The FBI started investigating “hate crimes” in the early 1920’s when it opened the first case against the Ku Klux Klan. In 1990, the FBI passed the Hate Crime Statistics Act, which requires the Attorney General to

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are