The Minnesota Attorney General Can Sue The Mega Computer Chip Manufacturer - Assignment Example

The attorney general can sue the Mega Computer Chip Manufacturer in the federal court. This is because the United States Justice Department can use its powers to present antitrust cases that are criminal under the federal antitrust laws. The federal courts are able to show that the MCCM has a market share by number and revenue of chips sold at 80 and 90% respectively. Additionally, Original Equipment Manufacturers, a national company, has the responsibility of selling the MCCM chips. On the other hand, the Minnesota attorney general can sue the MCCM for antitrust and monopoly violation in the state of Minnesota.

This is because the state can handle federal antitrust lawsuits. The state attorney can sue on the state’s behalf so as to rectify the wrong practices. Moreover, apart from compensating the federal and local governments, the state government will also be compensated in case a company is guilty of a violation.Monopoly power entails increasing or reducing prices of commodities or services for an unknown period without fearing to be undersold by those who can provide alternative services or goods.

The Mega Computer Chip Manufacturer has monopoly power, and they use it. MCCM has policies that impose prohibitive burdens or costs on Original Equipment Manufacturers, who are the manufacturers of computers, and who fit in the chips in their computers. The MCCM’s monopoly power makes them have an effect on OEM’s prices since they can lower or increase the price of the chips and OEM cannot. Additionally, MCCM can inform OEM the number of chips they can use, pay them so that they do not use their competitors’ chips, and delay their competitors’ chips use (Cheeseman, 2011).

A method of dispute resolution should be included in the contract. This will be helpful in the event of a disagreement (Cheeseman, 2011). Alternative dispute resolution methods should be adopted over courts. This is because it is more flexible, cost-effective, and faster than court trials.The resolution will take place in the state of Minnesota. Minnesota has the potential of handling court cases. In case the contract uses a court as a method of dispute resolution, the court in Minnesota can provide for a distinct jurisdiction or general jurisdiction.