Two Japanese firms-Mikato,Ltd.,and Shuzushi,Ltd.-enter into a joint venture in an attempt to in-crease their market share of the U.S.auto market.If the joint venture is not a per se violation of U.S.antitrust laws,a U.S.court could ex-ercise jurisdiction over the firms

Question

Quizplus · Accepted Answer

The U.S. court could exercise jurisdiction over the firms if the joint venture has a substantial effect on U.S. commerce, regardless of whether or not it violates U.S. antitrust laws. The Sherman Act provides that a court may assert jurisdiction over a foreign defendant where the defendant engaged in anticompetitive conduct outside the United States that has a direct, substantial, and reasonably foreseeable effect on U.S. commerce.

Two Japanese Firms-Mikato,Ltd