rward merger lets look at our own situation as students at the University of Phoenix. The University of Phoenix, until recently, used the standard text from the author and did not require a special edition text. Now the University of Phoenix requires the student to purchase the University of Phoenix special edition series, which is nothing more than a change of the text cover, and limits the purchase to only one supplier. The price is increased and the consumer's choice is restricted, thereby causing an anticompetitive market for the required text for school courses. A company may propose a merger to expand its geographical area if it does not sell a complimentary product. A merger may also be proposed if two companies in similar fields do not have overlapping sales. This would be called a market extension merger. Another type of market merger is the product market extension merger. In this merger a producer of furniture may merge with the producer of lighting products because the two companies do not directly compete. The legality of market extension mergers is closely examined under section 7 of the Clayton Act.A merger that does not fit into any of the previously mentioned areas of mergers may be considered a conglomerate merger. Conglomerate mergers are the mergers of large companies that would give unfair advantage, limit potential competition, and give the potential for reciprocity. An example of this may be the merger of Catalina Sailboat Company, a large sailboat production company, and Marine Textile Inc., a manufacturer of fiberglass and resin. This particular merger would give Catalina an unfair advantage because they would own the fiberglass manufacturer. It would limit the potential of other boat manufacturers to purchase the fiberglass. And last but not least it would give potential for reciprocity to a company that may contract to lay the hulls of the sailboats because Catalina could say unless you purchase ...
