Review Slides – Unit 3 Chapter # Questions 21 11 15 6 53 Antitrust 21 Warranty Law 11 Product Liability 15 Franchise Law 6 Total 53 Final Exam: Tuesday, May 1 @ 9:55

Antitrust, p. 1 Sherman Act Section 1- Agreements in Restraint of Trade Horizontal Price Fixing Group Boycotts Market Divisions Trade Assoc Exception Joint Ventures Vertical Resale Price Maintenance Territorial Restrictions – free rider problem Purpose of Antitrust Laws – protect consumers Sherman Act Section 2 – Monopoly Illegal Monopoly Possession of monopoly power Willful acquisition (how prove intent?) Superior product Business acumen Attempt to Monopolize – not against antitrust to have a good model and want to grow Relevant Market Product Market Geographic Market Predatory Pricing (dumping)

Antitrust, p. 2 Per Se v. Rule of Reason – what are the standards when do they apply? Price Fixing – Per Se – except retail price maintenance agreements (conscious parallelism) Horizontal Market Divisions – Per Se Most Issues – Rule of Reason. Clayton Act Tying Agreements Price discrimination (volume discounts) Mergers (Gov Review) Horizontal Vertical Conglomerate Enforcement Department of justice States Attorney General – for state laws Private parties Treble damages Exemptions Trade Unions Trade Associations Lobbying/Standards

Warranty Law Warranty of Title Express Warranties Implied Warranties Always – not just merchants Tough to disclaim – but possible if clear Merchants also warrant that free from intellectual property claims Express Warranties Puffery Fact – part of the bargain Tough to disclaim but can be done by clear and unambiguous language clearly placed in contract Implied Warranties Merchantability Merchants only Fit for ordinary purpose Fitness for a particular purpose Seller knows purpose Seller knows buyer is relying on seller’s judgment Buyer actually relies on the judgment Can disclaim – but must be clear – “as is” Magnuson-Moss Warranty Act Objectives (consumers to get complete information, promote competition based on warranties…) Full or Limited Warranty Other Rules – simple to read, available prior to purchase

Product Liability, Negligence slide 1 Duty Breach Proximate Cause/Causation Damages Privity. No privity of contract required Due Care Design Manufacture Assemble Warnings Etc.

Product Liability, Strict Liability slide 2 Without Fault Societal Reasons. Why change standard from negligence – societal benefits of strict liability Product Focus. Product focus rather than behavior focused Elements Seller in the business of selling the product No substantial change to the product Product defect Economically feasible alternative Defective due to dangerous beyond the expectations of an ordinary consumer - Defective due to inadequate warnings Subsequent Product Re-Design Market Share Liability Defenses Assumption of risk Product misuse State-of-the-Art Compliance with Government Standards Statute of limitations Commonly known danger

Franchise Law Federal Franchise Act Special Franchise Legal Issues Types of Franchises Product and trade name Business format Franchise Definition Examples Services offered Disclosure Rules Vicarious Liability Actual or Apparent Authority Antitrust Tying Vertical price restraints Co-branding Encroachment Termination Federal Franchise Act Federal Disclosure law State laws Special Franchise Legal Issues Internet Franchise Issues