ETHICAL SCENARIOS 2
Ethical Scenarios
Scenario 1
The United States has laws (antitrust laws) that control and regulate the operation of
business activities preventing consumers from predatory business practices by the retailers.
The goal of these laws is to provide a levelled playing field for homogeneous businesses that
operate in a particular sector while preventing them from gaining too much monopoly over
their competitors in a market. They stop companies from using unfair means to gain
dominance over the market. In the case scenario of the leading providers of bar review
materials and lectures in Georgi (BAR MAX and BRG) entering an agreement to limit their
business operation to a specific area is anticompetitive and is illegal under the federal
Sherman Antitrust Act.
Antitrust law, as the collection of all state and federal laws that regulate the way in
which every organization conducts their business, serve three main functions. All the three
functions, through the acts, tend to work towards promoting the fair competition for the
consumers to benefit (Gani et al, 2018). Otherwise, without the regulations, there are business
organizations which would find it too easy to monopolize the market with their services thus;
putting the consumers at risk of not getting the most appropriate benefits. Therefore, antitrust
laws were put into place to give protection against the various unfair activities like bid
rigging, monopolies and price fixing among many others. In the scenario of the two
companies, BRG and BARMAX, their conduct is illegal under the federal antitrust laws.
In 2000, the Federal Trade Commission (FTC) justified the collusion of FMC Corp. guilty of
and Asahi Chemical Industry in their attempt to divide the market for microcrystalline
cellulose, the commission then locked FMC from giving out Asahi product half a decade and
microcrystalline to any contender for a decade in the states (Aharoni, 2014). In the part two
of the Shearman Antitrust law stating that “every person who shall monopolize, or attempt to

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