IBL LAST Presentation

8/2/2019 IBL LAST Presentation

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4/11/20

Supervised By : Dr. Yassin Elshazly

Prepared By:

Marwa Shoukrallah

Ahmed Samir

Tarek Rafaat

Nevine Assem

Amira Melouk

Agenda:

Facts

Legal Problem

Applied rules Conclusion


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Junior answers that it is not subject to the jurisdiction of the US courts

Goliath answers that it was not a party to the cartel agreement and that the agreement does not

affect the US market for sapphires

The United States government has now brought suit against both Goliath and Junior forviolating the US Sherman Antitrust Act

The cartel agreement allocated markets and set prices for all sapphires sold outside of the UnitedStates.

Junior then entered into a cartel agreement with producers of sapphires in those countries (otherthan the US) where sapphires are found

Goliath, Inc., a United States producer of gem quality sapphires, set up a subsidiary holdingcompany in the Cayman Islands (Junior, Ltd.) to control all of Goliath's non-United States

subsidiaries.

GoliathCompany Junior Company

The United

StatesGovernment


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Legalproblem


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Section1 : Forbids combinations andconspiracies in restraint of interstate orinternational trade.

Two aspects of the us antitrust laws aresignificant internationally , one is theenforcement provisions which allow privatepersons to sue and to recover treble damages

for injuries they have suffered , The other isthe willingness of American courts to applythese laws extraterritorially


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Rule of reason: Rule applied by courts on a case-by-case basis requiring them to consider all of thecircumstance in deciding whether a restrictivepractice should be prohibited as imposing anunreasonable restraint on competition in violationof Sherman Act Section 1 Long arm statute

US jurisdictional rule of reason(United Statesminimum contacts test) : A jurisdictional testrequired by due process that looks to see if aperson had such contacts with a state that it couldreasonably have anticipated that it would have todefend itself there.


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According to

Sherman Antitrust actsection 1

and

US jurisdictional rule of

reason

The court should rule in

the favor of

The US Government


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Buena claims that Puros activities in Central America will force Buena to raise its prices and that thiswill affect American consumers

There is only one other large banana exporting company in competition with Buena and Puro

Buena has brought suit against Puro in a U.S. federal court in Miami. It claims that Puro is attempting tomonopolize the banana trade in Central America

Puros sales are now limited to South America, but it hopes to sell throughout the US soon. so it has set upa branch in Miami, Florida, and it is testing the local market with sales.

It will give them a guaranteed 10-year contract to purchase their entire production at 10 percent aboveworld market price

Puros subsidiaries have offered the Central American producers an arrangement that is remarkablygenerous by international standards.

Puro, an Argentine corporation that markets bananas throughout South America, recently set up severalsubsidiaries in Central America in direct competition with those of Buena

Buena then sells the bananas under its trademark to wholesalers in the United States

The Buena Banana Co., a U.S corporation, has several subsidiaries in Central America that purchase

bananas from local producers


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Buena BananaCompany

Puro CompanyThe U.S. federal

court


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Legalproblem


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Section2:Forbids monopolies andattempts to monopolize interstateand international trade.

United States effect test: Ajurisdictional test that subjectsforeign businesses To US antitrustlaws if their activities wereintended to affect U.S. commerceand the effect was other than

minimal.

Robinson-Patman Act : prohibits pricediscrimination: it mandates that two ormore purchasers of a commodity fromthe same seller must be charged identicalprices.

Clayton act : expands the enforcement

provisions of the Sherman Antitrust Act .Define exclusive dealing and tryingclauses , mergers that result inmonopolies and interlocking directoratesas being unfair business practice .


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According to

Sherman Antitrust act

section 2

and

Clayton Act

the court should rule inthe favor of

Buena Banana Company


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Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you

Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you

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