Jump to Navigation
Serving the Community for More Than 45 Years

How does collusion work?

Collusion is something that often comes up in business settings, and it can, in certain situations, be illegal.

According to Black's Legal Dictionary (2nd Edition), the term collusion will be used if two parties enter into a deceitful agreement at the expense of a third party. The dictionary words this very strongly, saying that the purpose of the arrangement has to be "evil" and even saying that the goal of the arrangement is to defraud the other party of his or her rights.

The dictionary goes on to note that this is something that happens in secret, and the two parties involved are typically those who have conflicting interests.

For example, two gas companies could both be supplying propane to the same area. They know that there are not any other suppliers who are selling to their customers. Typically, they would compete with each other, which is what keeps prices down. This is one of the advantages of a free market. Consumers get low prices because companies can't afford to overcharge.

However, if the two owners of the companies meet up behind closed doors, they may decide that they're both going to raise their prices. They know that there is no other competition, so, if they both charge more, then consumers are forced to pay the higher prices. They are forcing the consumers' hands and abusing the market.

In some cases, collusion accusations could come about when neither party meant to do anything wrong. There is often a fair amount of communication between competitors in various spaces, and conversations could spur price changes and other business moves. Those who have been accused of colluding to defraud another party in Maryland need to know their legal defense options.

Source: Black's Law Dictionary, "What is COLLUSION?," accessed June 17, 2016

No Comments

Leave a comment
Comment Information

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Thomas V. Mike Miller, Jr., P.A.
Clinton Office

8808 Old Branch Avenue
P.O. Box 219
Clinton, MD 20735
Phone: 301-856-3030
Fax: 301-856-4029
Map and Directions

Dunkirk Office
2960 Penwick Lane
Dunkirk, MD 20754
Phone: 301-855-3100
Fax 301-855-8251
Map and Directions

Crofton Office
2200 Defense Highway
Suite 304
Crofton, MD 21114
Phone: 410-451-1777
Fax: 443-292-4614
Map and Directions

FindLaw Network