Summary of Federal Laws

Miscellaneous Laws Affecting Universities             

Compliance Partners

VP for Enrollment Management

Sherman Antitrust Act of 1890

15 U.S.C. § 1 et seq.

This law has been applied in a number of instances to colleges and universities.  The Department of Justice interpreted this law to mean that financial aid awards must be established independently and not in concert with other institutions.  A university should avoid establishing prices for items in a bookstore based on collaboration with a wholesaler or another retailer.  Also, activities such as buying computers wholesale and reselling to students at prices that undercut local computer stores may qualify as price fixing.

Selected Case Law

Jung. v. AAMC, No. 02-0873, (U.S. Dist. Ct. DC) (Aug. 12, 2004)

On May 7, 2002, three former resident physicians filed an antitrust lawsuit against the National Resident Matching Program (NRMP) and its five sponsors, the Accreditation Council for Graduate Medical Education, and 29 hospitals that sponsor residency programs, alleging violation of  Section 1 of the Sherman Act.  On August 12, 2004 U.S. District Court Judge Paul Friedman granted the AAMC's motion to dismiss the case, due to the passage of legislation which clarifies that the NRMP does not violate antitrust law. As a result of this ruling, the Court denied all of the plaintiffs' motions.