IRAC Brief Assignment Example | Topics and Well Written Essays - 500 words

IRAC Brief - Assignment Example However, the company, through its subsidiaries conducts business in the USA, the Latin America and different other parts of the world. The business activities of Bridgestone Corporation included the shipment and sale of automobile anti-vibration rubber parts (AVP) to different car manufacturers, suppliers, subsidiaries and affiliates in the USA and elsewhere (Department of Justice, 2014). Rule: The U.S. District Court for the Northern District of Ohio ruled that Bridgestone Corporation engaged in a conspiracy to allocate sales, rig bids and assign and maintain prices for AVP contrary to the provisions of both the Sherman Act and the Foreign Corrupt Practices Act (Department of Justice, 2014). Consequently, the court ruled that Bridgestone Corporation pays $425 million criminal fine (Bridgestone Corporation, 2014). Analysis: The provisions of section 1 of Sherman Act of 1890 offers that any practice, conspiracy or restraint to fair trade competition among different states in the USA or within foreign nations is illegal (Muchmore, 2012). Thus, the USA department of Justice (USDOJ) alleged that the company’s practices of converging and discussing issues of price fixation and sharing of market shares between the affiliates, subsidiaries and supplier amounted to the violation of this provision of the law. Further, the USDOJ alleged that through rigging for bids and tenders for supply of AVP, Bridgestone Corporation violated the provisions of 15 U.S. Code  § 78dd The Foreign Corrupt Practices Act of 1977, which prohibits influencing or inducing officials to do, or omit doing any act that is their rightful duty (Department of Justice, 2014). In this respect, since Bridgestone Corporation, its subsidiaries, affiliates and suppliers engaged in rigging bids for winning tenders for supply of AV P to different states in the USA, its activities amounted to the violation of this provisions of the