cartel(redirected from Restrictive trade practice)
Also found in: Dictionary, Thesaurus, Financial, Encyclopedia.
Related to Restrictive trade practice: Unfair trade practice
A combination of producers of any product joined together to control its production, sale, and price, so as to obtain a Monopoly and restrict competition in any particular industry or commodity. Cartels exist primarily in Europe, being illegal in the United States under antitrust laws. Also, an association by agreement of companies or sections of companies having common interests, designed to prevent extreme or Unfair Competition and allocate markets, and to promote the interchange of knowledge resulting from scientific and technical research, exchange of patent rights, and standardization of products.
In war, an agreement between two hostile powers for the delivery of prisoners or deserters, or authorizing certain nonhostile intercourse between each other that would otherwise be prevented by the state of war, for example, agreements between enemies for intercommunication by post, telegraph, telephone, or railway.
Although illegal in the United States, foreign cartels influence prices within the United States on imported and smuggled goods that they control. The United States has sued the De Beers diamond cartel several times, and works to stop the flow of illegal narcotics, whose production and distribution are largely controlled by drug cartels.
n. 1) an arrangement among supposedly independent corporations or national monopolies in the same industrial or resource development field organized to control distribution, to set prices, to reduce competition, and sometimes to share technical expertise. Often the participants are multi-national corporations which operate across numerous borders and have little or no loyalty to any home country, and great loyalty to profits. The most prominent cartel is OPEC (Organization of Petroleum Exporting Countries), which represents all of the oil producing countries in the Middle East, North Africa and Venezuela. Many cartels operate behind a veil of secrecy, particularly since under American anti-trust laws (the Sherman and Clayton Acts) they are illegal. 2) criminal syndicates like the international drug cartel headquartered in Colombia. (See: antitrust laws)
cartelnoun accord, accordance, affiliation, alliance, amalgamation, association, bloc, body corrorate, coadjuvancy, coalition, colleagueship, combination, combine, common consent, community of interest, concert, concord, concordance, concordat, concurrence, confederation, conjunction, consenus, consociation, consonancy, consort, consortium, contract, cooperation, covenant, federation, fusion, group, joint concern, league, merger, mutual understanding, organization, pact, sodality, syndicate, trust, union, unity
Associated concepts: business cartel, international cartel
See also: business, coalition, compact, confederacy, consortium, league, pool, syndicate, treaty, trust
cartelsee COMPETITION, COMPETITION POLICY.
CARTEL,war. An agreement between two belligerent powers for the delivery of
prisoners or deserters, and also a written challenge to a duel.
2. Cartel ship, is a ship commissioned in time of war, to exchange prisoners, or to carry any proposals between hostile powers; she must carry no cargo, ammunitions, or implements of war, except a single gun for signals. The conduct of ships of this description cannot be too narrowly watched. The service on which they are sent is so highly important to the interests of humanity, that it is peculiarly incumbent on all parties to take care that it should be conducted in such a manner as not to become a subject of jealousy and distrust between the two nations. 4 Rob. R. 357. Vide Merl. Rep. b. t.; Dane's Ab. c. 40, a. 6, 7; Pet. C. C. R. 106; 3 C. Rob. 141 C. Rob. 336; 1 Dods. R. 60.