Exam 17: Antitrust

An equilibrium in which only the lowest-cost producers of goods and services survive is _________.

Section 2 of the Sherman Act prohibits

Which of the following is not a factor used in determining the anticompetitive effects of a horizontal merger under the Clayton Act?

In order to avoid an unworkable construction of the Sherman Act,the courts have construed Section 1 to prohibit only those restraints of trade that unreasonably restrict competition.

If a manufacturer of television sets acquires a magazine publisher,it will be a

Which of the following is not an unlawful horizontal restraint of trade?

Fact pattern 17-1 Patty owns and operates a gym.Her main competitor is Jason who runs another gym three streets from her.They cater to the same clientele.Patty and Jason keep trying to undercut each other in order to attract customers.One evening Patty sees Jason in the local coffee shop and sits down to talk with him.They discuss how difficult it is to do upgrades and make money with the prices they are charging.Patty winked at Jason and said "You know,charging $80 per month would enable a good profit margin." The next day Patty started charging $80 per month as did Jason.Customers started complaining particularly after another coffee drinker and gym customer at a table sitting at a table near Patty and Jason made it known that they had seemed very cozy.Patty and Jason deny any agreement to set the same price for gym membership.They avow that the decision was made by each of them independently. -Refer to fact pattern 17-1.Is the fact that no express words passed between Patty and Jason a defense to charges of antitrust violation?

Which of the following is an approach to analyzing the reasonableness of a restraint of trade?

The Supreme Court considers market divisions between competing firms to be so inherently anti-competitive as to constitute per se violations of the Sherman Act.

Which of the following can be performed by unilateral action?

Vertical agreements may reduce _________ competition.

A manufacturer that sells its goods both wholesale and at retail is called a(n)

With a(n)________ distributorship,a manufacturer limits itself to a single distributor in a given territory.

The __________ concludes that market forces defeat most anticompetitive practices.

A monopolist has a duty to deal with its rivals when it controls a(n)_________.

What must a plaintiff demonstrate for liability to attach under Section 1 of the Sherman Act?

Courts look more favorably on reductions in intrabrand competition when there is vigorous interbrand competition that can prevent the reduction in intrabrand competition form harming consumers.

Local municipalities may not be held liable for antitrust damages and are not subject to equitable remedies such as injunctions.

Even when a U.S.court finds a foreign corporation in violation of the antitrust laws,any award of damages is meaningless without foreign enforcement of the award unless the foreign corporation has assets in the U.S.that can be attached to satisfy the judgment.

Fact pattern 17-2 Number One Oil Company sells gas to various gas stations.Number One requires that the gas stations agree that they will not sell gas above a certain maximum price set by Number One.Some of the gas stations are unhappy with the arrangement because they wish to sell gas at any price they choose.Unfortunately for them,other oil companies in the region also impose maximum price restrictions.The station owners begin investigating whether any antitrust violation could be involved. -Refer to fact pattern 17-2.Which of the following is true regarding whether the imposition of maximum prices would be an antitrust violation?