Cartels Subsidiaries and International Law

Company X, a US company sets up Company Y, a subsidiary holding company in the Cayman Islands.

Company Y in the Cayman Islands entered into a cartel agreement outside of the US.

The United States government has brought suit against bother company X and Y for violating the US Sherman Antitrust Act.

Company X answered that it was not a party of the cartel agreement and it doesn’t affect the US market. Company Y answered that it is not subject to the jurisdiction of the US courts.

1. Are Company’s X and Y correct?
2. Explain


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