The Dream Drive Corporation is a major manufacturer of automobiles in the United States.The Jupiter Company is a small manufacturer of automobiles in the United States.Dream Drive is willing to purchase and merge with Jupiter.No one else is willing to do so.Without some merger,Jupiter is doomed to extinction.Although this merger might usually be prohibited as anticompetitive,which of the following defenses would probably apply?

Question

Quizplus · Accepted Answer

The failing company doctrine applies when a company is on the brink of failure and there is no other potential buyer or merger partner. In such cases, the antitrust laws may be relaxed to allow for a merger or acquisition that might otherwise be prohibited. In this scenario, Jupiter is doomed to extinction without a merger, and no other potential buyer or merger partner exists, so the failing company doctrine would likely apply as a defense against antitrust claims.

The Dream Drive Corporation Is a Major Manufacturer of Automobiles