Business law: understanding of sources of law - Antitrust law

Running head: BUSINESS LAW
Antitrust law
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Introduction
Business law defines responsibilities and rights rather than enforcing law. Antitrust law is a legislation that regulated commerce and trade by preventing practices or agreements that restrict competition and free trading between businesses. Anti-competitive practices and abusive behaviors that seem to result in dominance by some firms are banned (Emerson, 2009).
Antitrust law
The law has influenced my understanding that monopoly and price-fixing can affect free trade. It is important that firms produce quality goods yet at reduced prices for the benefit of public welfare. Fair competition ensures that consumers get goods at more reasonable prices. Free trade and commerce is beneficial to consumers, businesses and the economy as whole.
The law is critical to the understanding of trade regulations, economics and consumer protection. I am a typical consumer and would like my interests to be protected. This law ensures goods sold are of high quality while competition enables prices to remain relatively cheap. Price discrimination can be only illegal if it causes injury to consumers or seller’s competitors. Legally, price differences that result from inequalities in cost are allowed. My understanding is that price discrimination can succeed only when some buyers lack information regarding prices other customers are paying.
Monopolies and trusts are concentrated by a handful of people. This control if allowed to dominant can injure both the public and individuals because it encourages anti-competitive practices (Emerson, 2009). Anti-competitive practices are associated with price controls. This diminishes individual initiate causing the market to stagnate or depress economic expansion and growth
Antitrust laws also affec...