Question 1

From the 1940s through the 1970s,antitrust enforcement was quite stringent.

Accepted Answer

A) True 
 B)False

Question 2

A ________ restraint of trade occurs when two (2)or more competitors at the same level of distribution enter into a contract,combination,or conspiracy to restrain trade.

Accepted Answer

A)  parallel 
B)  fundamental 
C)  vertical 
D)  horizontal 
E)  contiguous 
A)  parallel 
B)  fundamental 
C)  vertical 
D)  horizontal 
E)  contiguous

Question 3

A horizontal merger is a merger between two or more companies that compete in the same business and geographical market.

Accepted Answer

A) True 
 B)False

Question 4

Consumers who have to pay higher prices because of an antitrust violation have recourse under Section 4 of the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 5

Where quality control of products is an issue,tying arrangements can be legal.

Accepted Answer

A) True 
 B)False

Question 6

Horizontal price fixing occurs when:

Accepted Answer

A)  one or more companies charge the same prices for goods at all of their stores for an unreasonable length of time. 
B)  a manufacturer requires its independent dealers to sell its products at a set price. 
C)  a company with the entire market on a patented product sells the product at a fixed price. 
D)  two or more competing companies agree on the prices to charge for their products. 
E)  prices are determined with reference to an index, such as the average price of crude oil, which neither the seller nor the purchaser can control. 
A)  one or more companies charge the same prices for goods at all of their stores for an unreasonable length of time. 
B)  a manufacturer requires its independent dealers to sell its products at a set price. 
C)  a company with the entire market on a patented product sells the product at a fixed price. 
D)  two or more competing companies agree on the prices to charge for their products. 
E)  prices are determined with reference to an index, such as the average price of crude oil, which neither the seller nor the purchaser can control.

Question 7

Which of the following statements is false?

Accepted Answer

A)  Only the government can bring an action under antitrust law. 
B)  Private parties, including injured consumers, may enforce antitrust laws. 
C)  Antitrust laws provide for both criminal and civil sanctions. 
D)  A government antitrust case judgment may be used as a prima facie case in a private action. 
E)  Successful plaintiffs may recover three times their actual damages. 
A)  Only the government can bring an action under antitrust law. 
B)  Private parties, including injured consumers, may enforce antitrust laws. 
C)  Antitrust laws provide for both criminal and civil sanctions. 
D)  A government antitrust case judgment may be used as a prima facie case in a private action. 
E)  Successful plaintiffs may recover three times their actual damages.

Question 8

A market extension merger is a merger between two companies in similar fields whose sales do not overlap.

Accepted Answer

A) True 
 B)False

Question 9

A market extension merger can exist:

Accepted Answer

A)  if the geographic market is extended. 
B)  if the product market is extended. 
C)  if either the product market or the geographic market is extended. 
D)  only if both the geographic market and the product market are extended in the merger. 
E)  only if the product market is extended into a different geographic area. 
A)  if the geographic market is extended. 
B)  if the product market is extended. 
C)  if either the product market or the geographic market is extended. 
D)  only if both the geographic market and the product market are extended in the merger. 
E)  only if the product market is extended into a different geographic area.

Question 10

Restraints of trade that are not characterized as per se violations are examined using the rule of reason.

Accepted Answer

A) True 
 B)False

Question 11

Section 1 of the Robinson-Clayton Act permits any person who suffers antitrust injury in his or her "business or property" to bring a private civil action against the offenders.

Accepted Answer

A) True 
 B)False

Question 12

The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring that:

Accepted Answer

A)  certain activities are classified as "per se" violations. 
B)  failing companies be rescued through mergers, whenever possible. 
C)  violators of antitrust laws be liable for treble damages. 
D)  mergers be allowed if United States competitiveness in world markets is improved. 
E)  the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms. 
A)  certain activities are classified as "per se" violations. 
B)  failing companies be rescued through mergers, whenever possible. 
C)  violators of antitrust laws be liable for treble damages. 
D)  mergers be allowed if United States competitiveness in world markets is improved. 
E)  the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms.

Question 13

If Section 1 of the Sherman Act were read literally,it would prohibit almost all contracts.

Accepted Answer

A) True 
 B)False

Exam 33: Antitrust Law

From the 1940s through the 1970s,antitrust enforcement was quite stringent.

A ________ restraint of trade occurs when two (2)or more competitors at the same level of distribution enter into a contract,combination,or conspiracy to restrain trade.

A horizontal merger is a merger between two or more companies that compete in the same business and geographical market.

Consumers who have to pay higher prices because of an antitrust violation have recourse under Section 4 of the Clayton Act.

Where quality control of products is an issue,tying arrangements can be legal.

Horizontal price fixing occurs when:

Which of the following statements is false?

A market extension merger is a merger between two companies in similar fields whose sales do not overlap.

A market extension merger can exist:

Restraints of trade that are not characterized as per se violations are examined using the rule of reason.

Section 1 of the Robinson-Clayton Act permits any person who suffers antitrust injury in his or her "business or property" to bring a private civil action against the offenders.

The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring that:

If Section 1 of the Sherman Act were read literally,it would prohibit almost all contracts.

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