Precision Parts Corporation and Aligned Gears, Inc

question 64

Essay

Precision Parts Corporation and Aligned Gears, Inc., are competitors selling certain machine parts that are otherwise generally unattainable in their geographic market. This market includes the states of Minnesota, North Dakota, and South Dakota. Precision Parts and Aligned Gears agree that Precision Parts will no longer sell in Minnesota and that Aligned Gears will no longer sell in North and South Dakota. Have Precision Parts and Aligned Gears violated any antitrust law? If so, which one? Explain. If they had divided their market by type of customer rather than geographic are, would the result be the same? Why or why not?

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Definitions:

Collective Bargaining

The negotiation process between employers and a group of employees aimed at reaching agreements on wages, working conditions, benefits, and other aspects of workers' compensation and rights.

Formalize Agreement

The action of making an agreement official or legally binding through the proper channels and documentation.

Union Proposals

Suggestions or demands put forward by a labor union during negotiations with employers about terms of employment, wages, and workplace conditions.

Decertify

The process of revoking or removing the official recognition or certification of a role, organization, or activity, often related to unions.