Question

In 2008, lawsuits were filed against three producers (LG Display Co., Chunghwa Picture Tubes, and Sharp Corporation) for conspiring to fix prices of LCD panels. What act prohibits conspiring with your competitors to fix prices

Answer 1

The act that prohibits conspiring with your competitors to fix prices of the commodity is Sherman Act

Step-by-step explanation:

In 2008, LG Display Co, Sharp Corporation, Chunghwa Picture Tubes Agree to Plead Guilty, Pay Total of $585 Million in Fines imposed on them by the Antitrust Division of U.S Department of Justice for Participating in LCD Price-fixing Conspiracies and the act that prohibits conspiring with your competitors to fix prices of the commodity is Sherman Act.

Sherman Act of 1890 is a United States Antitrust act which is used as a tool to regulate pricing system between manufacturer of same or similar commodity who otherwise referred to as competitors. The act refers that any agreement between parties or association that monopolized or that helps to control trade activities among the several states or foreign country is illegal. It then prohibit coming together of different manufacturer of a particular or similar product to fixed price of that products which if it happens, it then termed conspiracy which is punishable under law either by fine or as may be decided by the law court.

Answer 2

The act that prohibits conspiring with competitors to fix prices is Sherman Act ,option A as found in the attached

Step-by-step explanation:

The Sherman Antitrust Act was enacted in the year in 1890 prevent cases relating to collusion of business rivals coming together to dictate prices by price fixing.The Act was named after John Sherman, the main compiler of the Act.

While Robinson-Patman Act of 1936 was passed to prohibit all forms of price discriminations. Price discrimination is a selling strategy where the same item is sold at different groups of consumers.

In other words,price discrimination is a form extortion that should not be left to operate in a free market economy where forces of demand and supply determine the volumes of transaction and prices.