Exam 33: Antitrust Law

If the three (3)largest automobile manufacturers agreed among themselves what prices to charge automobile dealers for this year's models,this would be seller's illegal per se price fixing.

If a firm unilaterally chooses not to deal with another firm,they are not in violation of the law.

Spokes Folks is one of four bicycle shops in a college town.Spokes Folks is the only retailer in town that carries the line of bicycles made by Silver Streak.Spokes Folks carries several other bicycle lines,some of which are also sold by at least one of the other retailers.Spokes Folks has been having difficulties lately dealing with Silver Streak.Following a recent disagreement,Spoke Folks sent a letter to Silver Streak stating that Spoke Folks "refuses to purchase any further products from Silver Streak,and will terminate all business dealings as soon as its current unpaid invoices are paid." Is this an illegal boycott under the Sherman Act?

Professional football has been found to be exempt from antitrust laws.

Federal antitrust laws provide for both government and private lawsuits.

The ________ Act,which was enacted in 1950,widened Section 7 of the Clayton Act's scope to include asset acquisitions.

If Pepsi Cola were to merge with Michelin Tires,this would be a product market expansion merger.

There are no defenses available to the accused if a "per se" restraint of trade occurs.

Only the Interstate Commerce Commission can obtain an injunction under the FTC Act.

State antitrust laws are used to attack anticompetitive activity that occurs in intrastate commerce.

A small market that can support only one competitor,such as a small-town newspaper,is an example of a(n)________ monopoly.

Horizontal price fixing occurs when a manufacturer sets the retail price of the items they produce.

The object of a tying agreement must be a tangible product and not simply services or other intangibles.

Under the "rule of reason" for violations under the Sherman Act,certain restraints of trade can be legal in some circumstances,and illegal in others.

Determining the line of commerce that will be affected by the merger involves defining the relevant product or service market.

The Federal Trade Commission Act is enforced by the Department of Justice.

With a "per se" antitrust violation under Section 1 of the Sherman Act,a balancing of those effects helping competition and those hurting competition is considered in determining if an action was illegal.

In a Sherman Act Section 2 action,a court must define both the relevant geographic market and the relevant product or service market.

The Federal Trade Commission is empowered to enforce federal antitrust laws.

The Clayton Act is a federal statute,enacted in 1914,that regulates mergers and prohibits certain exclusive dealing arrangements.