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Business lawyers get the vapors when nominal competitors directly co-operate--on anything

Any lawyer who took the Intro to Antitrust course in law school (and even some of the Jailhouse Lawyers who hang out here) is conditioned to tell a client that the risks of direct co-operation with nominal competitors always outweigh the benefits.

And anyway, why should Dealer A trust Dealer B's assessment whether someone is an abuser?

The worst case is Dealer A says, "This is an as-is sale with no MBG because another dealer put you on our blackball list," and then the would-be buyer calls the local attorney general's consumer division and says, "There is an anti-consumer conspiracy going on!" "Price fixing!"

Then they send investigators to the stereo store, perhaps with a search warrant to seize some hard drives.

Lawyers are paid to come up with worst-real-case scenarios and to warn their clients off.

That is why there are outfits like CEA (CES)--to enable industry cooperation with purportedly adult supervision so nobody gets into antitrust and other trouble--even if the trouble is malicious fib-telling.

JM


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  • Business lawyers get the vapors when nominal competitors directly co-operate--on anything - John Marks 14:52:39 02/16/14 (0)

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