Fair Trade Law Q&A - Enterprises

Do labor unions constitute "enterprises" and "trading counterparts" referred to in the Fair Trade Act?

1. Under Article 2 of the Fair Trade Act, the term "enterprise" encompasses companies, sole proprietorships, partnerships, and any other persons or organizations that engage in transactions through the provision of goods or services, as well as trade associations or other legally established organizations formed by enterprises to promote the interests of their members.Accordingly, a labor union may constitute an enterprise only under specific circumstances where it acts as a market participant engaging in transactions. In particular, where a labor union, pursuant to the Labor Union Act, provides services and thereby engages in transaction, it may fall within the definition of an "enterprise" under Article 2 and be subject to the Fair Trade Act.
2. Article 3 of the Fair Trade Act defines a "trading counterparty" as any supplier or purchaser that engages in or enters into a transaction with an enterprise. Because a labor union may, under certain circumstances, provide services and engage in transactions, it may correspondingly qualify as a "trading counterparty" in Article 3. However, given the wide range of activities undertaken by labor unions, the applicability of the Fair Trade Act cannot be determined categorically. Instead, such determination must be made on a case-by-case basis, taking into account the specific facts and nature of the conduct at issue.