15:29
lawhub kind of a freaky ass name now that i think about it
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Simple English definitions for legal terms
cartel
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A quick definition of cartel:
A cartel is a group of companies that work together to cheat customers by fixing prices, rigging bids, or dividing up markets. This is illegal and can result in criminal penalties. The government has laws to stop cartels, like the Sherman Act and Clayton Acts. Companies that break these laws can be fined millions of dollars.
A more thorough explanation:
A cartel is a group of independent companies or organizations that work together to control prices, rig bids, divide markets, or engage in other illegal activities. Cartel behavior is mainly subject to criminal penalties under US antitrust laws, although some actions may result in civil penalties.
The Sherman Act and Clayton Acts are the two main laws that regulate cartels. The Sherman Act sets a maximum corporate fine of $100 million, but fines exceeding this amount have been imposed in the past decade. The Department of Justice may seek higher fines under 18 U.S.C. § 3571(d).
For example, F. Hoffman-La Roche was fined $500 million for its involvement in an international vitamin cartel that engaged in price-rigging. Another example is the London Silver Fixing case, where a group of banks was found to have manipulated the price of silver.
These examples illustrate how cartels can harm consumers by artificially inflating prices and limiting competition. The fines imposed on cartel members serve as a deterrent to prevent future illegal behavior.