Four Chinese manufacturers of vitamin C fixed prices and agreed on output restrictions. However, they argued that

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Four Chinese manufacturers of vitamin C fixed prices and agreed on output restrictions. However, they argued that their cartel arrangement did not subject them to antitrust liability in the United States because their price-fixing activities were compelled by the Chinese government and, as such, fell within the sovereign compulsion doctrine. 


While the Chinese law relied upon by defendants encouraged their behavior, it had no form of punishment for those who failed to comply. Is the price-fixing behavior protected by the sovereign compulsion doctrine? Explain.

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Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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