Deciding a case “on the merits” means basing the verdict on facts and law, rather than procedural issues. This concept originated in English law to prevent unjust decisions. In the business world, “on the merits” refers to evaluating competitive behavior based on its effects rather than its form. However, there is controversy over what is good or bad for competition. “On the merits” is a decision-making process oriented towards achieving justice.
“On the merits” is a term that has its roots in the law: the judge, having examined the matter relating to a case, can issue a verdict not based on procedural issues or other quibbles, but strictly on the facts brought to the test and the law how it applies to those facts. A judge deciding a case on the merits finds that the technical or procedural issues raised are either dealt with or irrelevant. The purpose of deciding cases in this way is to ensure that justice is done, rather than unfairly rewarding or punishing one party for complying or failing to comply with procedural requirements.
The concept of deciding legal cases on the merits has its origins in English law, where it was understood that strict application of the common law could sometimes produce unjust decisions. A popular example of this is the existence of time limits for filing claims: the fact that a party to a case, or his or her lawyer, should be penalized with automatic loss of a case for a relatively minor transgression is antithetical to the concept of justice or iniquity. This does not mean that the law itself is disregarded, or that procedural and technical requirements are ignored; rather, it means that the case itself is decided solely on the evidence and the application of the law to the evidence, and any consequences for technical and procedural errors will be administered outside the confines of the specific case. Deciding on the merits reinforces the idea that the law is not a set of loopholes and loopholes for the average citizen, but a resource available to ensure justice for all.
Another area that has increasingly incorporated “substance” into its vocabulary is the business world, especially when dealing with the concept of competition. There is great controversy over the competitive tactics and strategies employed by firms that are dominant, in a geographic or industrial market, where the focus is on whether a particular competitive behavior promotes or harms competition. This concept attempts to evaluate such behavior on its effects, rather than its form. For example, promoting “loss leaders” to attract customers to a store is an accepted practice used by many businesses. When considering competitive strategies on their merits, however, the use of loss leaders can sometimes be seen as harmful if employing the strategy forces the competition out of business, especially if the dominant competitor can be shown to have abused of his domain.
The controversy stems from the fact that some nations that have legislation codifying competition policy consider the form of a competitive practice, while others consider its effect. When form is the primary consideration, as long as a particular strategy is legal, all players in a market can employ it, even if that means some smaller competitors could be driven out of the market. Other countries’ policies and legislation are ambiguous, making it more difficult for companies to formulate behavior within acceptable legal parameters.
There is still controversy, however, since consensus on what is good or bad for the competition is hard to come by. In the case of a loss leader, for example, there is legitimate disagreement about when the competition has been harmed. For example, some suggest that driving any competitor out of business is an unacceptable harm to competition, while others argue that strong competition will inevitably drive less efficient players out of business. “On the merits”, therefore, is an expression used both in law and in business to describe a decision-making process oriented towards the achievement of justice.
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