Individuals serving on the boards of directors of competing firms is called
A)interlocking directorates
B)tying contracts
C)the rule of reason
D)exclusive dealing
E)predatory pricing

Question

Quizplus · Accepted Answer

Interlocking directorates occur when a person serves on the board of directors for two or more competing firms. It creates potential conflicts of interest and may result in anti-competitive behavior as board members have access to sensitive information about their competitor's strategies, pricing, and other confidential information. The Clayton Antitrust Act of 1914 made interlocking directorates illegal and subject to fines and penalties.

Individuals Serving on the Boards of Directors of Competing Firms