A lot goes into a merger or acquisition. Companies generally look at the deal from every angle to make sure the deal is advantageous. Numerous rules, regulations, and laws may apply to transaction, including Minnesota Antitrust Laws. With that in mind, you will need to learn more about how those laws affect you and your merger or acquisition.
The Minnesota Antitrust Law of 1971
Generally, this type of law is designed to prevent unfair competition. Often, ‘unfair competition’ is one reason that a merger or acquisition may be challenged.
Minnesota Antitrust Law states that “[a] contract, combination, or conspiracy between two or more persons in unreasonable restraint of trade or commerce is unlawful.”
The Law’s Effect on a Merger or Acquisition
Specifically, Minnesota law states that certain actions are illegal. For example, when two or more persons in competition make a contract, combination, or conspiracy between themselves for the purpose of:
- affecting or controlling market prices or fees for commodities or services;
- dividing customers or markets for a commodity or service;
- conspiring regarding the fixing of public contracts;
- refusing to transact business with another person.
The law also prohibits:
- discrimination or exclusion of a party from a business transaction because of the person’s sex, race, color, religion, ancestry, or national origin;
- discrimination or exclusion from the transaction because the individual has dealt with someone from a certain country.
As you might imagine, antitrust laws are complex.
Penalties for Violating Minnesota Antitrust Laws
Such fines and penalties fall into two categories:
- Civil Penalties. Courts may impose fines up to $50,000 for violations of Section 325D.49 to 325D.66. An individual or company that fails to comply with such a court-ordered penalty faces an additional civil penalty of up to $100,000.
- Criminal Penalties. Willfully committing certain acts, particularly those contained in Section 325D.52, can lead to a felony charge. Additionally, the individual may be fined up to $50,000 or receive a sentence of up to seven years in a state penitentiary, or both.
Get the Advice You Need Before Finalizing Your Merger or Acquisition
At Virtus Law, we have the experience and skills to assist in your transactions, including mergers and acquisitions. Contact us by calling 612.888.1000 or by emailing us at info@virtuslaw.com. Our main office is in Minneapolis, with other offices located in Maplewood, Cambridge, Edina, Mendota Heights, and Red Wing.