The US Justice Department Initially Reviewed the Fair Factories Clearinghouse but but Eventually

question 12

Essay

The U.S. Justice Department initially reviewed the Fair Factories Clearinghouse but eventually approved the effort as described in readings and class. What was the government initially concerned about?

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Definitions:

Tacit Collusion

A form of collusion in which firms in a market coordinate their pricing or output strategies without explicit communication or agreement.

Competition

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.

Illegal

Activities or actions that are prohibited by law and subject to legal penalties, including fines and imprisonment.

Legal

Pertaining to laws or the system of rules that a particular country or community recognizes as regulating the actions of its members.