Question

As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning:

A) intellectual property.
B) antitrust.
C) jurisdiction.
D) licensing.
E) arbitration.

Answer 1

Northwest Airlines and KLM Royal Dutch have special exemptions from antitrust laws, allowing them to set air fare prices jointly and coordinate flight schedules.

Step-by-step explanation:

The special exemptions granted to Northwest Airlines and KLM Royal Dutch from laws concerning antitrust allow them to set air fare prices jointly and coordinate flight schedules. These exemptions are granted because the U.S. government recognizes the benefits of their alliance relationship, even though such behavior would typically be considered harmful to competition. By working together, these airlines can offer improved services and greater convenience for passengers.