Section 3 Clayton Act

1526 codified at 15 u s c.

Section 3 clayton act. Generally section 3 of the clayton act makes it illegal to enter into tying arrangements exclusive dealing contracts or requirements contracts if such arrangements or contracts tend to lessen competition. The commission is charged under sections 3 7 and 8 of this act with preventing and eliminating unlawful tying contracts corporate mergers and acquisitions and interlocking directorates. 13 13b and 21a under which the commission is authorized to prevent certain practices involving discriminatory pricing and product promotion.

14 makes illegal certain distribution practices. Section 3 of the clayton act 15 u s c s. Such a strategy attempts to maximize the price that each customer is willing to pay.

Section 2 of the clayton act deals with price discrimination where a company decides to offer different prices for the same product or service. This act was amended by the robinson patman act pub. These contracts may be per se illegal if monopolistic behavior is present.

Prohibition on the conduct of the seller lessor not on the conduct of buyer lessee 4. That regime started with the sherman antitrust act of 1890 the first federal law outlawing practices considered harmful to consumers. Price discrimination is intended to lessen competition or create a monopoly.

It is easier to violate section 3 of clayton act than section 1 of sherman act 6. In a tying arrangement the customer is required to accept an undesired product in order to obtain a desired product. When examining if substantially lessening competition look at if it does so in the line of commerce aka the market 5.

The clayton act sought to prevent anticompetitive practices in their incipiency.