I think in this case the company is violating the………… Act which prohibits ……………

1. Arrow Inc., a motorbike producer, sells bikes through dealers who operate in different cities. Arrow has set different initial prices for different dealers.

2. Colebridge department store sells glassware besides other goods, so does its competitor the shop Crystal which has become very popular with the consumers. Colebridge makes losses in glassware sales. Colebridge tells some producers of wineglasses not to sell their products to Crystal. If they do, Colebridge will lose nearly half of its sales.

3. Barnes Inc. is a regional producer and seller of beverages and juices. Morons Co. is an exclusive distributor of beverages in the area. Morons supplies products from three companies - Barnes, Palms and Hopper - to shops and restaurants. Barnes intends to acquire the stock and assets of Morons and to form Barnes-Morons Beverage company.

4. Green Inc., Scarlet Inc. and Brown Co. are competitors in the manufacture and sales of gardening equipment. In May the three competitors decide to make a “gift” to the gardeners, and agree to lower their prices on the products by 20% for a two months period.

5. The company Folks, producing canned products, has launched a new line of canned vegetable mix. To compete with other producers Folks is advertising its product as “absolutely natural, non-GMO and conservative agent free mix”. The inspection of the product finds the existence of some GMO - genetically modified objects (green peas) and a type of light conservative agent.

6. Big Builders Co. has approached its competitors High Constructions Inc. and FineHouse LLC with a proposal to divide the district area into three development zones so that each company would operate strictly in its zone.

B) Make a commentary using clauses of reason. Study the information in the Grammar Reference Supplement “Clauses of Reason” and then comment of the above given situations.

The first is done for you.

Example

Arrow Inc. has violated the Robinson-Partman Act because the company charges different prices from its customers (dealers). This is discrimination in prices prohibited by the law.

Exercise 7

Fill out the following chart Penalties cells according to the information in the text “Penalties”

Particular law violation	Initiator of law enforcement	Classification of the wrongful act	Penalties
Sherman Act	DOJ	Crime: felony
Clayton Act	private person or agency or attorney general (class action)	Civil wrong
FTC Act (or other laws)	FTC or person or entity	Civil wrong	Damages ……………… ……………….
Robinson-Patman	FTC or person or entity	Civil wrong	Civil penalties

Answer the following questions using information in the chart

1. What kind of wrong is the Sherman Act violation?

2. Who initiates the Sherman Act law enforcement? How is it done?

3. What penalties can a corporation be exposed to?

4. What penalties are imposed on employees, officers and directors of the lawbreaking company?

5. What compensation can be awarded to a private party in an antitrust lawsuit?

6. Who can file a class action on behalf of the consumers?

7. What kind of penalties can the FTC impose for the violations of antitrust laws and consumer protection laws?

Grammar: clauses of cause and reason: due to; because of; owing to; on account of.

Exercise 8

Match the two parts of the following sentences.

1. Due to the Sherman Act violation,	a) the court ordered an injunction.
2. Owing to practices that caused a restraint of the plaintiff’s trade in violation of the Clayton Act,	b) the company’s directors were convicted of felony and sentenced to imprisonment.
3. On account of the deceptive and misleading advertising campaign held by the company in violation of FTC Act,	c) substantial damages were awarded by the court to the injured party, the customers.
4. Owing to the fact that the supplier company was discriminating the customers charging different prices in violation of Robinson-Patman Act,	d) the company was exposed to a substantial monetary fine.
5. Because of the fact that TSM actually monopolized the local market of transportation services,	e) triple damages plus attorney’s fees were imposed on the defendant company.

Make up sentences like this using information in the Unit and Grammar rule.