Economic Policy in America

The ethical considerations of these cases primarily divide the views in terms of the firm’s structure and the performance of these business organizations. The two scenarios illustrated in the book of McConnell & Brue (2004), Economics: Principles, Problems, and Policies, are analyzed in this section. In 1911, the issue of U. S Steel case has established a rule of reason in the court. The conditions are the increased size and evident monopolistic powers of the said firm.

However, the firm has justified their claims in the court stating the presence of these powers is basically unintended. They have not caused any illegal actions among their minor competitors hence the court termed their case as “good trust” considering this not guilty. On the other hand, the Aloe Case that has occurred in 1945 has possessed clear indication of monopoly since it has supplied 90% aluminum in the market. Such case has led into incapacitation the minor aluminum producers.

The court has announced guilty and violation of Sherman act sec II is pronounced (p. 600). Structuralists view that the firm with most market shares are the legitimate target of this monopoly law since market competition are being affected. In this case, it is natural for the occurrence of such monopolistic behavior. Suggestion of this group involves the splitting of this huge firm into smaller units providing improvement and quality of performance as well. This applies in the case of Aloe since their firm shares the biggest part in the market.

In another point of view, Behavioralists view the large firms make their way to possess unintended monopolistic status. They view that this might be because of the quality of service, best products and reasonable prices rendered to the public. Such case, if proven to have absent competitive practices provides pardon from monopoly regulation of Sherman act (p. 601).

REFERENCES

Emerson, R. 2004, Business Law, Barron’s Educational Series, p. 485 Letwin, W. 1981, Law and Economic Policy in America: The Evolution of the

Sherman Antitrust Act, University of Chicago Press, p. 3 McConnell C. R. & Brue L. 2004, Economics: Principles, Problems, and Policies, McGraw-Hill Professional, p. 600-601 Olson, C. 1999, Job Centre: the ongoing demise of public monopolies in Europe, (Recent Rulings of the European Court of Justice), Denver Journal of International Law and Policy, p. 1-2 Pearlstein D. J. 2002, Antitrust Law Developments (fifth), American Bar Association, p. 231 & 239 U. S Anti-trust Laws: Sherman Anti-trust Act of 1890 Section II. Monopolizing trade a felony