Generally speaking, the antitrust and competition laws of the United States and other countries forbid agreements or activities that restrain trade or limit competition and prohibit attempts to monopolize. The laws generally prohibit agreements among competitors regarding the price of products, or how or to whom products may be sold. In our business, the sale of our products - gold and other metals - is conducted by a few individuals. We only engage in the sale of other products, services or materials on occasion, and we rarely see exclusive contracting scenarios. Thus, we are faced with potential antitrust situations infrequently. The threat of restrained trade or limited competition is significant in today's markets as a whole; however, we recognize our obligations under the antitrust laws and competition laws.
Here are some scenarios in our business where these types of issues may be relevant:
• Relations with Competitors: There are a number of situations, such as participation in industry associations, where we interact with our competitors. These situations create the risk that members of the association will be accused of collusion. Industry meetings (including educational conferences) offer opportunities for competitors to communicate with each other, to exchange information, and, in some instances, to formulate joint positions on issues of legitimate common concern. Common activities of trade associations, for example, include the compilation and analysis of industry statistics, the discussion of legislative and regulatory developments, the formulation of voluntary industry standards and codes, and the discussion of market trends and technological developments. These activities are legitimate in most cases and can be useful, but they also involve significant antitrust risks. Always obtain legal advice before submitting proposals, statistics or other information to a trade association, and before adopting or interpreting any standard or code that would create a hardship for any actual or potential industry member or supplier.
We may cooperate with our competitors and with others to formulate position papers or proposals for submission to legislative or regulatory officials. Such joint activities are proper and desirable, even if their goal is government action that would limit competition. Such joint activities must, however, be confined strictly to good-faith efforts to influence legislative or regulatory actions. Such joint action must not result in an agreement, understanding or exchange of information - beyond the joint action necessary to influence official actions - that would reduce competition among the participating companies or impair competition with other companies.
While we may select our customers or suppliers, we cannot agree with competitors to restrict in any way those with whom we deal. Thus, we may not agree with others to boycott or refuse to deal with a supplier. Likewise, we cannot agree with our competitors to divide markets among us, such as by territory, product or customer. We cannot agree with competitors to limit production of any products or services.
