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I would consider them the same as a covenant not to compete
is that true? I dont know why they dont last other than they are illegal

2006-10-15 11:33:10 · 1 answers · asked by SWANY 2 in Business & Finance Other - Business & Finance

1 answers

a cartel though seemingly in competition work together to keep all business between them. Business practices such as bullying distributors of merchandise, the hoarding of qualified personnel or other such tactics are why they are illegal.

Once an open market is established and the cartel is dissolved they have come to rely on their illegal practices to stay ahead. With the flooding of the market people take advantage before the ex-cartels can react. And it's the distributors that choose the products to show and sell, so they are the ones that can now choose the best product without pressure, so will frequently encourage new business as it breeds variety for them to choose from.

Check out the US government's decision on the Paramount Decree of 1949, that sohuld give you some idea.

2006-10-15 11:43:43 · answer #1 · answered by jleslie4585 5 · 0 0

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