The activities of a corporation and its wholly owned subsidiary will not constitute the concerted action necessary for a violation of Section 1 of the Sherman Act.

Question

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In the Copperweld Corp.v.Independence Tube Corp.case (U.S.Sup.Ct.1984),the Supreme Court held that a parent company is legally incapable of conspiring with a wholly owned subsidiary for Sherman Act purposes,because an agreement between parent and subsidiary does not create the risk to competition that results when two independent entities act in concert.

The Activities of a Corporation and Its Wholly Owned Subsidiary