Exam 46: Antitrust Law and Unfair Trade Practices

________ is a defense in a Section 2(a)action which provides that a seller's price discrimination is not unlawful if the price differential is due to "differences in the cost of manufacture, sale, or delivery" of the product.

________ is a restraint of trade in which a seller refuses to sell one product to a customer unless the customer agrees to purchase a second product from the seller.

The two tests the U.S.Supreme Court has developed for determining the lawfulness of a restraint are the rule of reason and the ________.

Natural monopolies are found to violate Section 2 of the Sherman Act.

Which of the following is an example of a vertical restraint of trade?

For conscious parallelism to be proven, each manufacturer should be found to have acted on its own.

What is a backward vertical merger?

According to the failing company doctrine, two or more smaller companies are allowed to merge to compete with a larger company even if they are highly profitable as smaller companies.

________ damages are the only damages that may be recovered for violations of the FTC Act.

________ is an antitrust principle which says that two or more persons can petition the executive, legislative, or judicial branch of the government or administrative agencies to enact laws or take other action without violating antitrust laws.

A unilateral refusal to deal is a violation of Section 1 of the Sherman Act because there is a concerted action with others.

The Federal Trade Commission and the Department of Justice share the power to enforce the FTC Act.

Which of the following is true of the per se rule in restraint of trade?

The insurance business enjoys a statutory exemption from antitrust laws.

Vertical mergers create an increase in market share because the merging firms serve similar markets.

Antitrust defendants often opt to settle government-brought antitrust actions by entering a plea of nolo contendere.

It is necessary to prove actual injury in order for a plaintiff to recover in a price discrimination lawsuit.

What is a premerger notification? Explain the process outlined by the Hart-Scott-Rodino Antitrust Improvement Act to execute a merger.

The rule of reason is characterized by ________.

A merger between two regional fruit-sellers that do not sell fruit in the same geographical area is an example of a ________.