1. 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 9:55

2. 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)

3. 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

4. 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

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

6. 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

7. 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