legal aspects of business decisions

timer Asked: Nov 11th, 2013

Question description

Goliath, Inc., a United States producer of gem quality sapphires, set up a
subsidiary holding company in the Cayman Islands (Junior, Ltd.) to control all
of Goliath's non-United States subsidiaries. Junior then entered into a cartel
agreement with producers of sapphires in those countries (other than the US)
where sapphires are found. The cartel agreement allocated markets and set prices
for all sapphires sold outside of the United States. The United States
government has now brought suit against both Goliath and Junior for violating
the US Sherman Antitrust Act. Goliath answers that it was not a party to the
cartel agreement and that the agreement does not affect the US market for
sapphires. Junior answers that it is not subject to the jurisdiction of the US

  1. Are Goliath and Junior correct? Explain!

  2. If they are incorrect, explain why.

  3. What options do they have?

One of the problems that occur when businesses establish subsidiary companies
in foreign countries is the issue of who is responsible for which company. The
resolution of this issue has serious implications for all of the employees of
both companies as well as the communities that both companies serve. Discuss the
economic, political, social, and legal implications of this kind of situation.














Tutor Answer

(Top Tutor) Studypool Tutor
School: UIUC
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors