Question 1

States lack the power to enact antitrust statutes autonomously.

Accepted Answer

A) True 
 B)False

Question 2

A restraint of trade in which two or more competitors at one level of distribution agree not to deal with others at another level of distribution is known as ________.

Accepted Answer

A) group boycott 
B) resale price maintenance 
C) price fixing 
D) market sharing 
A) group boycott 
B) resale price maintenance 
C) price fixing 
D) market sharing

Question 3

A monopoly power is characterized by ________.

Accepted Answer

A) a market share of below 20 percent 
B) an inability to control prices in the market 
C) an ability to exclude all competition from other sellers 
D) a presence of multiple substitute goods at competing prices 
A) a market share of below 20 percent 
B) an inability to control prices in the market 
C) an ability to exclude all competition from other sellers 
D) a presence of multiple substitute goods at competing prices

Question 4

The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is examined by applying the ________.

Accepted Answer

A) Colgate doctrine 
B) Noerr doctrine 
C) per se rule 
D) rule of reason 
A) Colgate doctrine 
B) Noerr doctrine 
C) per se rule 
D) rule of reason

Question 5

The fact that price fixing helps consumers or protects competitors from ruinous competition can be used as a valid defense against the charge of price discrimination.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The unfair advantage theory is intended to prevent wealthy companies from overwhelming the competition in a given market.

Accepted Answer

A) True 
 B)False

Question 8

Under the ________, the court must examine the pro- and anticompetitive effects of a challenged restraint.

Accepted Answer

A) Noerr doctrine 
B) rule of reason 
C) per se rule 
D) consent decree 
A) Noerr doctrine 
B) rule of reason 
C) per se rule 
D) consent decree

Question 9

The Sherman Act is the only major antitrust act that includes criminal sanctions.

Accepted Answer

A) True 
 B)False

Question 10

Price fixing is a ________ violation of Section 1 of the Sherman Act.

Accepted Answer

A) reasonable 
B) per se 
C) justifiable 
D) permissible 
A) reasonable 
B) per se 
C) justifiable 
D) permissible

Question 11

Which of the following is considered to be a primary defense against Section 7 of the Clayton Act?

Accepted Answer

A) Noerr doctrine 
B) Colgate doctrine 
C) the failing company doctrine 
D) Conscious parallelism doctrine 
A) Noerr doctrine 
B) Colgate doctrine 
C) the failing company doctrine 
D) Conscious parallelism doctrine

Question 12

Treble damages cannot be sought for the violation of antitrust laws.

Accepted Answer

A) True 
 B)False

Question 13

Division of markets is considered to be a type of horizontal restraint of trade.

Accepted Answer

A) True 
 B)False

Question 14

The functional interchangeability test is used in defining the relevant product or service market.

Accepted Answer

A) True 
 B)False

Question 15

Three of the largest petroleum refineries in the country have come to an agreement about what price they would pay to purchase crude oil from sellers.This is an example of ________.

Accepted Answer

A) sellers' illegal per se price fixing 
B) sellers' illegal group boycott 
C) buyers' illegal per se price fixing 
D) buyers' illegal market sharing 
A) sellers' illegal per se price fixing 
B) sellers' illegal group boycott 
C) buyers' illegal per se price fixing 
D) buyers' illegal market sharing

Question 16

Treble damages are allowed in an FTC Act violation.

Accepted Answer

A) True 
 B)False

Question 17

Conscious parallelism is seen when ________.

Accepted Answer

A) parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices 
B) one party makes an independent choice not to deal with another 
C) two or more firms act the same but no concerted action is shown 
D) a party's anticompetitive effects outweigh their procompetitive effects 
A) parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices 
B) one party makes an independent choice not to deal with another 
C) two or more firms act the same but no concerted action is shown 
D) a party's anticompetitive effects outweigh their procompetitive effects

Question 18

The ________ is a rule that is applicable to restraints of trade considered inherently anticompetitive.

Accepted Answer

A) consent decree 
B) Noerr doctrine 
C) per se rule 
D) rule of reason 
A) consent decree 
B) Noerr doctrine 
C) per se rule 
D) rule of reason

Question 19

Which of the following businesses and activities enjoys an implied exemption from antitrust laws?

Accepted Answer

A) railroads 
B) agricultural cooperatives 
C) airlines 
D) labor unions 
A) railroads 
B) agricultural cooperatives 
C) airlines 
D) labor unions

Question 20

Which of the following is true of the Colgate doctrine?

Accepted Answer

A) It is not a violation of Section 1 of the Sherman Act. 
B) It is an example of a horizontal restraint of trade. 
C) It is a per se violation of Section 1 of the Sherman Act 
D) It is a rule of reason violation of Section 1 of the Sherman Act. 
A) It is not a violation of Section 1 of the Sherman Act. 
B) It is an example of a horizontal restraint of trade. 
C) It is a per se violation of Section 1 of the Sherman Act 
D) It is a rule of reason violation of Section 1 of the Sherman Act.

Exam 46: Antitrust Law and Unfair Trade Practices

States lack the power to enact antitrust statutes autonomously.

A restraint of trade in which two or more competitors at one level of distribution agree not to deal with others at another level of distribution is known as ________.

A monopoly power is characterized by ________.

The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is examined by applying the ________.

The fact that price fixing helps consumers or protects competitors from ruinous competition can be used as a valid defense against the charge of price discrimination.

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

The unfair advantage theory is intended to prevent wealthy companies from overwhelming the competition in a given market.

Under the ________, the court must examine the pro- and anticompetitive effects of a challenged restraint.

The Sherman Act is the only major antitrust act that includes criminal sanctions.

Price fixing is a ________ violation of Section 1 of the Sherman Act.

Which of the following is considered to be a primary defense against Section 7 of the Clayton Act?

Treble damages cannot be sought for the violation of antitrust laws.

Division of markets is considered to be a type of horizontal restraint of trade.

The functional interchangeability test is used in defining the relevant product or service market.

Three of the largest petroleum refineries in the country have come to an agreement about what price they would pay to purchase crude oil from sellers.This is an example of ________.

Treble damages are allowed in an FTC Act violation.

Conscious parallelism is seen when ________.

The ________ is a rule that is applicable to restraints of trade considered inherently anticompetitive.

Which of the following businesses and activities enjoys an implied exemption from antitrust laws?

Which of the following is true of the Colgate doctrine?

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

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