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Simple English definitions for legal terms
forestalling the market
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A quick definition of forestalling the market:
Term: Forestalling the Market
Definition: Forestalling the market is when someone tries to control the price of goods by buying them before they reach the market or by convincing sellers to raise their prices. This is not fair because it stops people from buying things at a reasonable price. It is like cheating in a game because it gives one person an unfair advantage over others.
A more thorough explanation:
Definition: Forestalling the market is the act of taking possession of commodities on their way to the market, purchasing goods with the intention of reselling them at a higher price, or deterring sellers from offering their goods at a reasonable price. It is a crime that inhibits normal trading by persuading sellers to raise their prices on goods or dissuading them from offering the goods in a particular market, or by purchasing as much as possible of certain goods before they reach the market to drive up prices.
Example 1: A farmer buys all the wheat from other farmers in the area before it reaches the market. He then sells the wheat at a higher price to the millers who need it to make flour. This is an example of forestalling the market.
Example 2: A group of traders conspire to buy all the fish from the fishermen before they reach the market. They then sell the fish at a higher price to the retailers who need it to sell to the consumers. This is also an example of forestalling the market.
These examples illustrate how forestalling the market can lead to higher prices for consumers and unfair competition for other traders who are not involved in the scheme. It is a practice that is illegal and harms the economy by disrupting the normal flow of goods and services.