Question

The operators of adult bookstores got together and each agreed to contribute $1,000 to a fund for use in lobbying the city council to repeal an ordinance which made the sale of sexually explicit publications a crime. If the operators are charged with violating the antitrust laws, what will be the likely defense? Explain.

Answer 1

Answer:

The operators have not violated the antitrust laws because they are only collaborating to lobby the government

Explanation:

The antitrust law in the U.S. can be described as a group of federal and state government laws enacted to regulate the activities of business firms in order to enhance competition to the advantage of consumers.

The antitrust law aims to collusive activities that suppress trade, any merger and acquisition that would reduce competition, and prevent the the abuse of monopoly power.

Since the activity of the operators of adult bookstores does not fall under what the antitrust law aims to prevent but it is just a collaboration to lobby the government, they have a good defense that they have not violated the antitrust laws.