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Simple English definitions for legal terms
vertical trust
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A quick definition of vertical trust:
Vertical trust: A type of business combination where one company owns multiple businesses or factories that are involved in different stages of making or selling a product. For example, a company that owns a farm, a food processing plant, and a grocery store would be a vertical trust. This can sometimes be a problem if it leads to unfair competition or higher prices for consumers.
A more thorough explanation:
Definition: A vertical trust is a type of combination where multiple businesses or plants engaged in successive stages of production or marketing are brought together under a single ownership.
Example: A company that owns a farm, a food processing plant, and a grocery store is an example of a vertical trust. The company controls the production, processing, and distribution of the food from start to finish.
Explanation: In a vertical trust, the company has control over multiple stages of the production or marketing process. This can lead to increased efficiency and lower costs, but it can also lead to anti-competitive behavior if the company uses its power to limit competition or raise prices.