Unfair competition
Unfair competition is present in all industries and it happens around us daily, mostly because of lack of attention to details.
Unfair competition is “A branch of intellectual property law, unfair competition is a term applied to all dishonest or fraudulent rivalry in trade and commerce. This term is particularly applied to the practice of endeavoring to substitute one’s own goods or products in the market for those of another for the purpose of deceiving the public.
This deception is commonly accomplished by imitating or counterfeiting the name title, size, color scheme, patterns, shape or distinctive peculiarities of the article, or by imitating the shape color, label, wrapper or general appearance of the package in such a way as to mislead the general public or deceive an unwary purchaser.
Acts of unfair competition are generally characterized by deception, bad faith, fraud or oppression, or as against public policy because of their tendency to unduly hinder competition. Unfair competition laws have been established to protect consumers and businesses and help prevent illegal merchandizing.” Kane, S. (n.d)
This unfair competition affects the construction industry also in various ways from government contracts to private contracts. Contractors find various ways to put themselves in a better position to win a tender. In May, 2013 an article retrieved from a California Superior Court judge has ruled that a lawsuit against Chicago Bridge & Iron Company (CB&I) will proceed to trial in September 2013. Filed in Los Angeles County, the complaint alleges that CB&I developed a scheme to land lucrative business by “creating a materially false impression of its safety record” in an attempt to prevail over competing co...
... middle of paper ...
...r document, the services of a desired engineer which will be paid in accordance with the contract. Being certified is of utmost importance especially in government works and contracts because at the basis of the funds which are used are either generated from loans or from the taxes which the members of the community pay over from their salaries.
Reference: Kane, S. (n.d) Unfair Competition. Legalcareers.about.com. Retrieved March 24, 2014, from http://legalcareers.about.com/od/glossary/g/Unfaircompetition.htm http://www.forconstructionpros.com/news/10940658/construction-company-goes-to-trial-for-unfair-competition-allegations Public Private Partnership Pros and Cons
Juan Rodriguez http://construction.about.com/od/Government/a/Public-Private-Partnership-Pros-And-Cons.htm Public Private Partnership http://www.investopedia.com/terms/p/public-private-partnerships.asp
Even though monopolies are illegal, public corruption allows companies to form and continues to be a problem today. In an article published by the Los Angeles, Anh Do
“Processor Editorial Article - Antitrust Laws: Not Just For The Big Boys.” Editorial.Processor 19 Nov. 2004: 27+. Processor.com. Web. 29 Nov. 2011 .
United States has several laws that ensure that competition among businesses flow rely and new competitors get free access to the market. These laws intend to ensure fair and balanced competitive business practices. However, there are times when some businesses will do anything to gain competitive edge. USA has strong antitrust laws that prohibit fixing market price, price discrimination, conspiring boycott, monopolizing, and adopting unfair business practices. The history of Antitrust laws goes back to 1890 when Congress passed Sherman Act. In 1914, Congress passed two more acts: Federal Trade Commission Act, and Clayton Act. With some revisions, these three acts are still core antitrust acts.
All things considered, competition can be either benevolent or unacceptable. Being competitive in most activities or events is not always appropriate, and in some cases, competition could bring up negative feelings if not everybody was treated the same or
The anti-trust laws were set in place to promote vigorous competition but also to protect the consumer from unfair mergers and business practices. The first antitrust law that was passed by Congress is called the Sherman Act and is a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade” according to www.FTC.gov . Later in 1914 Congress passed two more laws, one creating the Federal Trade Commission Act (FTCA) and then the Clayton Act, which now create the three core federal antitrust laws that are still active currently. Although they have changed over the last hundred years, they still have the same concept: “to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up” as stated by the FTC.gov website on The Antitrust Laws.
We all hear the term “monopoly” before. If somebody doesn't apprehend a monopoly is outlined as “The exclusive possession or management of the provision or change a artifact or service.” but a natural monopoly could be a little totally different in which means from its counterpart. during this paper we'll be wanting into the question: whether or not the govt. ought to read telephones, cable, or broadcasting as natural monopolies or not; and may they be regulated or not?
Anti-trust laws are laws which prohibit anti-competitive behavior and unfair business practices. Their purpose is to make sure that businesses and consumers cannot be abused by powerful firms that hold or wish to hold a monopoly in the market. They also take into account certain ethical standards, and therefore can be considered quite subjective. Many specific strategies are outlawed by anti-trust laws, including price fixing (agreement on prices of uniform goods or services), predatory pricing (setting a low price in order to knock off competitors), and vendor lock-in (virtually forcing a consumer to buy from a certain supplier).
Greed and incentives are two terms that each play a role in the other. Incentives are sometimes rewarding and sometimes punishing. Greed is intense and selfish, but is it really bad? By looking at it from an economical perspective, one can see how forms of greed and incentives play a crucial role in the free market society.
What is competition’s biggest advantage over you and how do you intend on fixing this problem?
1) To me, market competition is the act of various different providers of goods and services trying to accomplish their goals. These goals can be to increase market share, profits, revenue etc…. I would say that street food hot dogs I recently bought in New York are a good example of perfect competition. The food is all priced relatively cheap, since they are price takers, the food is almost the same, buyers know what the price should be and the available substitutes, and there are very low barriers to entry/exit.
Predatory pricing “is alleged to occur when a firm sets a price for its product that is below some measure of cost and forfeits revenues in the short run to put competitors out of business” (Sheffet p.163-164). The reason firms take the short term loss is because they hope to drive out competitors and raise prices to monopolistic levels. By doing this, they covered their short term loss to make even greater profits in the long term than they would have by not using predatory tactics (Sheffert). Predatory pricing became illegal under Section 2 of the Sherman Act. It has remained one of the more difficult allegations for prosecutors to prove, due to the complexity of determining the company’s actual intent and whether or not it the strategy is competitive pricing. According to Areeda and Turner, there are three ways to determine if a firm is implementing predatory pricing. First, a price above marginal cost is presumed lawful; second, a price below marginal cost is considered unlawful, except when there is strong demand; and third, average variable cost is considered a good proxy for marginal cost. This is a reason predatory pricing is still important today. The courts must decide whether or not companies are engaging in competitive prices for the good of the consumers or are using predatory tactics for the good of their own company. The purpose of this paper is to focus on the current legislation regarding predatory pricing, determining when there is predation in an industry and the cause and effect relationship it has on an industry.
...ur; in such cases, competition authorities must act to fight unlawful practices that are detrimental for the economic welfare.
Formalities – if formalities are prescribed for the formation of the contract , they must be observed.
In a perfectly competitive market, the goods are perfect substitutes. There are a large number of buyers and sellers, and each seller has a relatively small market share. Perfect competition has no barriers to information regarding prices and goods, meaning there is no risk-taking behaviour – sellers and buyers are rational. There is also a lack of barriers for entry and exit.
Thus, consumer protection laws, prohibit unfair or defective acts from being practiced by companies.