Many professional engineers belong to a trade association called the National Society of Professional Engineers, which governs

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Many professional engineers belong to a trade association called the National Society of Professional Engineers, which governs technical aspects of the practice of engineering. The canon of ethics adopted by the Society held that engineers could not bid against one another for a particular job. The Society claimed that this rule was to prevent engineers from engaging in price cutting to get engineering jobs, which could then give them incentives to cut corners on the quality of work. Such a practice could lead to inferior work that could endanger the public. The Justice Department sued, claiming that this was a violation of Section 1 of the Sherman Act. The government claimed that the ethical rule reduced price competition and gave an unfair advantage to engineers with well-established reputations. Who wins? [National Society of Professional Engineers v. United States, 98 S.Ct. 1355 (1978)].

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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