Business Law Discussion Assignment Order Instructions: Please read below for information concerning assignment, it has 2 parts.
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Assignment 1: Discussion Assignment
The discussion assignment provides a forum for discussing relevant topics for this week based on the course competencies covered. Use the textbook, lectures and scholarly outside sources to support your work. As in all assignments, cite your sources in your work and provide references for the citations in APA format. Post the answers to both parts in one discussion post and do not attach documents.
Discussion Question Part 1
Scenario 2 – Competition
Cube Computers, a manufacturer and seller of personal computers and tablets, entered into agreements with suppliers. The agreement required that suppliers did not sell Cube’s computers below Cube’s suggested minimum retail price and in return, Cube would not sell its products at retail prices in the store owners’ respective territories. Are these agreements valid?
A famous movie star indicated on national television that Cube was her favorite computer. After the comment, sales of Cube computers increased 40 percent. Since demand outpaced supply, Cube decided not to sell any more computers unless an additional software package was purchased. A competitor informed the Office of the Attorney General of this policy, asserting it was illegal. Explain the legal basis for the complaint and decide which party will prevail.
Part 2 – Federal Administrative Agencies
Select one federal administrative agency and provide a summary of the purpose and types of activities the agency regulates.
A chosen agency is Department of Veterans Affairs,
Business Law Discussion Assignment Sample Answer
Business Law
Part 1 – Competition
Based on the anti-trust rules, as provided by the Federal Trade Commission, the agreements between Cube Computers and the suppliers are valid. Unlike in the past where anti-trust rules would prohibit retail price influenced by manufacturers, these rules have since been relaxed, allowing manufacturers to set prices and also select the retailers they wish to deal with (Adams, 2011). These are known as manufacturer-imposed requirements. The laws maintain that it is possible for the manufacturer to avoid unfair competition by dictating minimum price and protect consumers through setting a maximum price; hence the reason why such agreements should not be entirely branded as illegal. Accordingly, the anti-trust laws dictate that each case presented should be ruled based on the circumstances or the ‘rule of reason’ (Federal Trade Commission, 2016).
The decision by Cube Computers to restrict the purchase of their computers following the increased demand may be assessed using two arguments, making it neither legal nor illegal. The actions by the company could is legal based on the refusal to supply provision as provided by the Sherman Antitrust Act (Dameron, 2016). The Act provides that a firm has the right to refuse trade with a company or individual as long as it is not a result of an anticompetitive agreement or an exclusive strategy aimed at creating or maintaining the monopoly. Tying a product to another sale however raises anti-trust issues, although it does not expressly make the action illegal. As dictated by antitrust rules on tying sale of two products, the rule of reason prevails and the company’s intention would, therefore, be used in determining whether the action is illegal (Federal Trade Commission, 2016). In the case of Cube Computers, for example, the reason was to cope with the rising demand and not necessarily to force consumers to buy the software.
Part 2 – Federal Administrative Agencies
The role of the Department of Veterans Affairs is to safeguard the welfare of veterans and their dependents through the management of federal benefits. Commonly known as VA, the department is responsible for the administration of federal benefits including health care for veterans, survivors and their families. This ensures that following retirement, veterans and dependents receive the desired support to live a comfortable life, including access to health care and housing. The department also caters for funeral expenses.
The department performs different functions, which can be explained based on its subdivisions as follows (VA Website):
Veterans Health Administration: This subdivision is responsible for the health care aspect including the provision of health care and providing health benefits. VA operates over 1700 health facilities including clinics, hospitals, domiciliaries, community living centers, and counseling centers.
Veterans Benefits Administration: This division concerns itself with the administration of benefits by conducting initial registration, determining eligibility, and providing the key benefits which include insurance, home loan guarantee, education, employment, and vocational rehabilitation, compensation and pension.
National Cemetery Administration: this division plays the role of ensuring decent burial for veterans through services such as burial benefits and memorial benefits. The division also responsible for maintaining VA cemeteries.
Business Law Discussion Assignment References
Adams, R. J. (2011). A Brief Review and Assessment of the Leegin Decision: Who Wins and
Who Loses When Manufacturers Are Free to Set Retail Prices? Business & Society Review, 116(2), 213-236. doi:10.1111/j.1467-8594.2011.00383.x. Retrieved from eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=14&sid=8278cdc8-90dd-450b-a5f9-52efd0d60637%40sessionmgr4005&hid=4110
Dameron, C. S. (2016). Present at Antitrust’s Creation: Consumer Welfare in the Sherman Act’s
State Statutory Forerunners. Yale Law Journal, 125(4), 1072-1114. Retrieved from eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=16&sid=8278cdc8-90dd-450b-a5f9-52efd0d60637%40sessionmgr4005&hid=4110
Federal Trade Commission. (2016). The Antitrust Laws. Retrieved on April 15, 2016, from
https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws
U.S. Department of Veterans Affairs (VA). Website. Available online at www.va.gov
