Business Laws Essay Example | Topics and Well Written Essays - 750 words

Business Laws - Essay Example Single-firm conduct is a practice that undermines several United States’ laws, for example, Section 2 of the Sherman Act. The behaviour is evident in companies that are successful to the extent that they do not observe common competitive pressures. A normal market, such as the American market, supports a competitive market with competing firms. Most of the laws to regulate this malpractice are effective, but to some extent. The Sherman Act makes monopolization or attempts to monopolize trade activities illegal (Katz, 2006). The law may be ineffective because of its ambiguity, especially in the definition of monopolization. For instance, it provides room for aggressive marketing procedures, unless a company tries to achieve monopoly through â€Å"unreasonable† measures. A legitimate business justification is not an â€Å"unreasonable† method, according to a court of law. For instance, a business may have effective strategies that ensure they meet their target mark et without the use of any unlawful methods that may be injurious to competitors or customers. An example is the Microsoft Company, which fashioned a monopoly over operating systems software for personal computers that are IBM-compatible. Through this, the company managed to dissuade other computer makers and software developers from installing non-Microsoft browser software in its products. Through the law, competing firms were able to make Microsoft end their conduct that prevented rivals from gaining a market share. Fraudulent advertising is a negative practice that undermines fair, balanced, and competitive business practices. Listerine, a largely commercial product in the early 1900s, has faced several bans and fines owing to its false advertisements. As a mouthwash product, its advertisements claimed to cure colds, a fact that was clinically incorrect. This business practice affects several stakeholders, especially consumers