Antitrust laws & trade associations


DIVISION OF CUSTOMERS OR MARKETS



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DIVISION OF CUSTOMERS OR MARKETS.

An agreement among members of an

association to divide customers or markets

served is, in and of itself, a criminal act The

antitrust laws prohibit any understandings or

agreements between competitors or members of an association that involves the division or allocation of customers. Even informal agreements whereby one member agrees to stay out of another member’s territory will constitute a violation of the antitrust laws


MEMBERSHIP. A basic assumption about

every trade association is that its members

derive an economic benefit from membership. Denial of membership to an applicant may therefore constitute a restraint of trade in that such denial of an economic benefit limits the rights of an applicant to compete. Thus membership criteria must be carefully drafted to avoid antitrust problems.




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