BUSINESS LAW 4
TheAmerica’s FederalTrade Commissionundertakes important duties in preventing mergers that are likely toreduce competition, increase prices, and lessen the quality of goodsor services. Before allowing any union, FTC undertakes a review ofthe market dynamics to ascertain that the process will not harm theconsumers. Based on the FTC’s requirements, the unification betweenKableworks and Indirect TV should not be allowed to proceed. The twocompanies operate in the same line of business, although the productsare not similar. The horizontal merger would see Kableworks attainmarket share of close to 85 percent hence, hinder competition fromother entities. FTC should protect the interests of the consumers bydisallowing the merger (Anthony, 2015).
Asa competitor to BigMart, there are no grounds to challenge itstransaction with Cotton Express. A business agreement between CottonExpress and BigMart came out of free will among the companies. Itwould be inappropriate to raise queries since free market allowsbusiness entities to utilize strategies that can enhance theattainment of their goals. BigMart sells its products at low pricesthus, the profit margin is comparable to other enterprise operators(Anthony, 2015).
Uponlending money to Underwood Enterprises, First Bank of Wilkes-Barreshould make all efforts to make it receive first priority to `seizethe equipments purchased as collateral. The issue should be clearlycaptured in the loan agreement, whereby, the bank takes custody ofthe original receipts. The two companies should have clear provisionsthat stipulate the conditions for awarding the loan, including therepayment period. The bank will have the right to seize the propertyfollowing a failure by Underwood Enterprises to show commitment inrepaying the loan (Anthony, 2015).
AnthonyL., (2015). Essentialsof business law.Pennsylvania: McGraw-Hill Higher Education.
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