The following situations illustrate violations of federal antitrust laws: Situation A Two HMOs split a large employer group by agreeing to let one HMO market to some company employees and to let the second HMO market to different company employees. Situation B Members of a physician-hospital organization (PHO) that has significant market share jointly agreed to exclude a physician from joining the PHO solely because that physician has admitting privileges at a competing hospital. From the following answer choices, select the response that best identifies the types of violations illustrated by these situations:

Question

Quizplus · Accepted Answer

Situation A illustrates a violation of antitrust laws through horizontal division of territories, where the two HMOs agree to split the employer group by marketing to different sets of employees. This reduces competition, limits choices for the employer and employees, and violates Section 1 of the Sherman Act. Situation B illustrates a group boycott, where members of a physician-hospital organization jointly agree to exclude a physician solely because they have admitting privileges at a competing hospital, which limits competition and violates Section 1 of the Sherman Act.

The Following Situations Illustrate Violations of Federal Antitrust Laws: Situation