Question

In 2008, lawsuits were filed against three producers (LG Display Co., Chunghwa Picture Tubes, and Sharp Corporation) for conspiring to fix prices of LCD panels. What act prohibits conspiring with your competitors to fix prices?

a. Sherman Act
b. Robinson-Patman Act
c. Clayton Act
d. Federal Trade Comission Act

Answer 1

a. Sherman Act

Step-by-step explanation:

Sherman act is also called the anti trust act. It prevents business interests from creating a monopoly and taking undue advantage in a market by collusion to influence price of a commodity.

For example when competing companies come together to monopolize a market so that they can maximise profit, the Sherman act can be used to prevent this from happening.

In the given scenario LG Display Co., Chunghwa Picture Tubes, and Sharp Corporation conspired to fix prices of LCD panels. This is prohibited by the Sherman Act