Understanding Intra-Enterprise Conspiracy: Definition and Implications

Q: Can a parent company conspire with its subsidiary?

No, generally, a conspiracy cannot exist between a parent company and its subsidiary.

Q: What should I do if I suspect an intra-enterprise conspiracy?

Document evidence and consult with a legal professional for guidance.

Definition & Meaning

An intra-enterprise conspiracy refers to a situation where two or more divisions, subsidiaries, or parts of the same company engage in a conspiracy. Typically, a conspiracy cannot exist between a corporation and its subsidiary. However, if a conspiracy occurred before a merger and continued after the merger, it may not be classified as an intra-enterprise conspiracy. This type of conspiracy is sometimes referred to as a bathtub conspiracy.

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Legal Use & context

This term is primarily relevant in corporate law and antitrust cases. Intra-enterprise conspiracies can arise in various legal contexts, including civil litigation involving competition and corporate governance. Users may find legal forms related to corporate disputes or antitrust claims useful when dealing with issues of intra-enterprise conspiracy.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

(Hypothetical example) A large corporation has two subsidiaries, A and B. If subsidiary A and subsidiary B agree to fix prices on their products, this could be considered an intra-enterprise conspiracy. However, if they merge and continue their price-fixing agreement, it may not be classified as such if the conspiracy existed before the merger.

Comparison with related terms

Term	Definition	Key Differences
Conspiracy	An agreement between two or more parties to commit an illegal act.	Can involve parties outside the same enterprise.
Bathtub Conspiracy	Another term for intra-enterprise conspiracy.	Specifically refers to conspiracies within the same company.

Common misunderstandings

What to do if this term applies to you

If you suspect that an intra-enterprise conspiracy may be affecting your business, consider taking the following steps:

Document any evidence of collusion or unethical behavior.
Consult with a legal professional to understand your rights and options.
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Quick facts

Involves two or more divisions of the same company.
Typically cannot include agreements between a parent company and its subsidiary.
May have implications in antitrust law.