It dictates the kinds of businesses that investors indulge in, the legal specifications and tax requirements. Upcoming business enterprises must comply with these rules and regulations (Steven, 2008 p.78).
Antitrust in the business world explains how it seeks to make sure that business enterprises compete fairly in the market. This in the past, has had an effect on the economy of many countries in the world. With beliefs that free, commercial trade is advantageous to consumers, businesses and economy, this law restricts monopolization and restraints of trade activities. Four main areas emanate from this: pursuit of monopoly power, agreements between competitors, contract arrangements between buyers and sellers and business mergers (Keith, 2007 p.120).
A monopoly is a market whereby there is only one supplier or manufacturer or producer of a product. This means that a producer provides a good or service without any competition. The goods have no close substitutes (Jens, 2008 p.89).
A legal doctrine describes a set of rules and regulations established through a process of precedence in the common law. This helps in making judgments in legal cases. Laws in legal doctrines stipulate that judges make a judgment about cases in reference to cases that in the past had judgment passed. Judges have the power to refer to other cases if the one he is handling is similar. This helps bring down time spent on cases and helps reach judgment faster. The law allows for use of this technique.
Situations in legal doctrines are for instance. a company accused of counterfeiting goods that belong to an original company. If a person is before a court of law under the accusation of stealing the design of another person, he is to face the same judgment that the company undergoes. This shows that the two cases are common and that the same judgment applies to both the cases.