A Foreign Company, Partially Owned by That Foreign Government, Manufactures

question 65

Multiple Choice

A foreign company, partially owned by that foreign government, manufactures televisions in the foreign country. The cost to the company for the manufacture of the product is the equivalent of $60 in the U.S. Because of excess production, the firm exports 50,000 sets to the United States where they are sold for $75 each. If the nearest rival U.S.-made set sells for $85, the action of the foreign company:

• A) constitutes price-fixing.
• B) violates the GAAT anti-dumping provisions.
• C) violates the Sherman Act, because of the involvement of the foreign government in the company.
• D) appears to be legal.

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Definitions:

Statement of Claim

A statement of claim is a legal document filed in court that outlines the plaintiff's allegations against the defendant, serving as the initial step in a legal action.

Plaintiff Opens Trial

The initial phase of a trial in which the plaintiff, or person bringing the case, presents their argument or evidence first.

Contingency Fees

A payment arrangement where a lawyer's fee is contingent on winning the case, typically a percentage of the settlement or judgment.

Frivolous Lawsuits

Legal claims that are initiated without substantial grounds, often considered wasteful or harassing.