What is a vertical merger?

Please read the Ethics case under course content for this week and answer the following questions:

1. What is a vertical merger? What requirements must be proven to find a vertical merger illegal? (Please explain your answer)

2. Did the Du Ponts act ethically in this case?  ( Please explain you answer)

3. Did Du Pont’s ownership of 23 percent of the Stock of General Motors constitute a vertical merger that gave Du Pont illegal preferences over competitors in the sale of finishes and fabrics to General Motors and therefore violate Section 7 of the Clayton Act? (Please explain your answer)

4. Provide an example of a case where a party was found guilty of an illegal vertical merger.  Provide provide a brief overview of the case and explain the conduct that made the merger illegal.