If Price Fixing by Competitors Is Necessary Because Without It

question 246

Essay

If price fixing by competitors is necessary because without it a firm will go bankrupt, is the price fixing legal?

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Definitions:

Corporate Shell

A legal entity with no significant assets or operations, often used to facilitate business transactions like mergers or to hold assets.

Control Block

An interest controlling 50% of outstanding votes plus one; thereby it may decide the fate of the firm.

Corporate Takeover

The acquisition of one company by another, either through direct purchase or through the accumulation of a majority of its stock shares.

Distribution

The process of delivering products or services from the producer to the final consumer.