Memorial Hospital, a hospital in Bordertown, Iowa, has an agreement with Careco, a managed care organization with plan members in the states of Iowa, Nebraska, and South Dakota, to provide medical care to its members.
A condition of Memorial's agreement states that Careco cannot contract with other hospitals in the Bordertown, Iowa area. The contract is for a year and either party may terminate the contract for any reason, with a 60-day notice period.
Discuss any possible anti-trust laws that Memorial may have violated. Also, discuss any defenses that Memorial can establish to an anti-trust action. To answer this problem, you may refer to Antitrust Review at http://www.justice.gov/atr/about/antitrust-laws.html.