John owned a construction company that frequently bid on state contracts. He agreed with other construction company owners to rig the bidding process to ensure that each company would receive state contracts. The firm designated among the group to receive the bid would submit an inflated price and the others would submit even higher bids to ensure the first company would receive the contract. This led to unreasonably high costs for government projects. What may allow for the prosecution of this behavior?

Question

Quizplus · Accepted Answer

The Sherman Antitrust Act of 1890 is designed to prevent anticompetitive practices, such as bid rigging, which is exactly what John and the other construction company owners were engaging in by manipulating the bidding process to ensure each company would receive state contracts at inflated prices.

John Owned a Construction Company That Frequently Bid on State