4 ms·
> but most certainly can't raise wages, lower prices, and cut dividends (Ford v. Dodge) Can you summarize this case? I don’t understand why corporations would
by dml2135 3y ago
> but most certainly can't raise wages, lower prices, and cut dividends (Ford v. Dodge)
Can you summarize this case? I don’t understand why corporations would be prevented from doing this. Couldn’t you always make the case that lowering prices or increasing wages are in the long term interest of shareholders, with the goal of increasing market share?
- maxwell 3y agoI'm not a law talkin' guy or member of any bar cartel.
- maxwell 3y agoThat said, it sounds like Henry Ford expressed that he wanted to hire more people, make up for lower prices with more volume, and invest in more plants, but seemed also motivated by cutting off dividend payments to the Dodge bros. Their payments had reached a megadollar a year, after initially putting in 10 kilobucks for 10%, and Ford correctly suspected they were using the payments to fund a rival car company. Courts ruled he couldn't cut off dividends so he bought everybody out.