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In: Operations Management

BONUS QUESTION B. Pierre decides to sell his hot dog restaurant in Mt. Pleasant. The dog...

BONUS QUESTION B. Pierre decides to sell his hot dog restaurant in Mt. Pleasant. The dog and bun shop have been wildly successful due to Pierre’s secret recipe for his special sauce.

The buyer, Brian, pays a premium for the business. The agreement also provides that Pierre CANNOT open a competing business for 2 years within a 25-mile radius of the store’s current location on Michigan Avenue in Mt. Pleasant that uses Pierre’s secret sauce.

YOU GUESSED IT. Pierre opens a new restaurant 6 months later. The new restaurant does NOT sell dogs or use Pierre’s secret sauce in any of the food products that the restaurant sells. The new business is primarily a donut shop with various exotic coffees. It is called the “ROUND MOUND. AND DRINKS.”

In its advertising, the store states, “Come to the Round Mound and eat hearty – You too can be a round mound, just like Pierre.” The new business is also wildly successful, and Pierre is making $$$ hand over fist.

Brian now sues Pierre and wants the store closed. Please address Brian’s rights under the anti-trust statutes, a claim for false advertising, and the enforcement of the non-compete agreement.

Solutions

Expert Solution

Answer:-

There are three principle manners by which the Federal antitrust laws are enforced:

Criminal and common enforcement activities brought by the Antitrust Division of the Department of Justice. Common enforcement activities brought by the Federal Trade Commission. Lawsuits brought by private gatherings declaring harm claims.

The antitrust laws should advance and ensure rivalry, or, maybe, serious procedures in particular "lines of trade" or "significant markets." This by itself is their appropriate purpose. They are not expected to rebuff large organizations simply by virtue of their size or on account of their business achievement.

Since they are by their inclination mystery, value fixing, offer apparatus, and customerallocation tricks are hard to identify and demonstrate. Consequently, law enforcement authorities depend on grievances and data from customers and contenders.

A huge level of all Federal antitrust examinations results from objections got from customers or individuals in business by telephone or mail or face to face. On the Federal level, you can contact the Antitrust Division at its Washington workplaces or any of its workplaces in Chicago, New York, and San Francisco.

You can likewise arrive at the Antitrust Division through any of the workplaces of the United States Attorneys, which are found in most enormous urban areas all through the United States.Effective antitrust enforcement needs open help. Open obliviousness and lack of concern can debilitate antitrust enforcement more than all else.

Whether you are an agent or a customer, on the off chance that you experience business conduct that seems to disregard the antitrust laws, don't stop for a second to advise the enforcement specialists regarding your doubts.

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