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Precision Parts Corporation and Aligned Gears, Inc

question 64

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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:

Team Leader

An individual who provides direction, instructions, and guidance to a group for the purpose of achieving a certain goal or completing a project.

Middle Managers

Employees who manage other managers or advanced professionals, acting as an intermediary between top management and front-line employees.

Overall Operations

Encompasses the total processes and activities undertaken by an organization to produce goods or provide services, including production, logistics, and management functions.

Effective Managers

are individuals who achieve desired results through the efficient use of resources and the successful direction of their team members.

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