Trust Is A Combination Of Firms Formed By A Legal Agreement

This word means « sale by a few. » There is an oligopoly when a few companies have almost complete control over the marketing of certain products or services. In the United States, four automakers — Ford Motor Company, General Motors Corporation, Chrysler Corporation, and American Motors Corporation — would have effective control over auto marketing in the U.S. if foreign automakers did not both export many of their products and build their own production sites in the United States. The Bubble Act was briefly known in 1808, eighty-eight years after the Act was passed, when, for the first time in nearly a hundred years, the Court of King`s Bench threatened to make a contractor liable for setting up a trust in violation of the Bubble Act. 90 90 R v. Dodd (1808) 103 Eng. Rep. 670 (KB) 670-72; 9 East 516, 518. For the analysis, see Alceste Santuari, The Joint Stock Company in Nineteenth Century England and France: King v. Dodd and the Commercial Code, 14 J. Legal Hist. 39 passim (1993).

In 1825, Chancellor Eldon also suggested, in a court report, that trust-based companies could be illegal, regardless of the Bubble Act. Taylor (1825) 3 LJR 68 (Ch) 75 (Eng.); Ron Harris, Économie politique, Interest Groups, Legal Institutions, and the Repeal of the Bubble Act in 1825, 50 Econ. Rev. 675, 687-88 (1997) [hereinafter Harris, Political Economy]. . However, the business community reacted angrily and Parliament officially rescinded the Bubble Act 1825. 91-91 Harris, Political Economy, supra Note 90 at 688-91 (Chronicle of the Evolution of Bills Repealing the Bubble Act). .

Throughout modern history, the Common Law Trust has often allowed businesses to obtain many of the same doctrinal benefits as existing versions of the form of the corporation at the time, including limited liability, unit protection, capital commitment, negotiable shares, the legal person in dispute, and a reasonable scheme of fiduciary skills. And the Trust offered these features in a cheaper and easier to access format than the company. The trust has never been a perfect substitute for the form of the corporation and has sometimes been burdened by legislation that made the trust illegally or otherwise less attractive than the form of the corporation. Nevertheless, for legal reasons, the trust has been remarkably effective in offering the most important of the form of society. To compete with outside companies, some industrial units unite….

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