Question 1

The European Union takes a stricter view of vertical territorial restraints because of their tendency to impede continent-wide market integration.

Accepted Answer

A) True 
 B)False

Question 2

What was the result in Williamson Oil Co.v.Philip Morris USA,the case in the text in which it was alleged that tobacco companies had conspired to fix prices?

Accepted Answer

A)  The suit was dismissed because the plaintiffs could not establish any "plus factor" needed to proceed. 
B)  The suit was allowed to proceed because no "plus factor" was needed. 
C)  The suit was allowed to proceed because "plus factors" were established by plaintiffs. 
D)  The suit was dismissed because the plaintiffs lacked standing. 
A)  The suit was dismissed because the plaintiffs could not establish any "plus factor" needed to proceed. 
B)  The suit was allowed to proceed because no "plus factor" was needed. 
C)  The suit was allowed to proceed because "plus factors" were established by plaintiffs. 
D)  The suit was dismissed because the plaintiffs lacked standing.

Question 3

Which of the following is not an illegal horizontal market division?

Accepted Answer

A)  Division by a class of customers 
B)  Division by exclusive distributorships 
C)  Division by geographic territory 
D)  Restricting product output 
A)  Division by a class of customers 
B)  Division by exclusive distributorships 
C)  Division by geographic territory 
D)  Restricting product output

Question 4

Firms can incur liability under Section 2 of the Sherman Act by acquiring monopoly power through corporate mergers or acquisitions.

Accepted Answer

A) True 
 B)False

Question 5

The agreement of all the commercial airlines not to lower their fares would be an example of a

Accepted Answer

A)  vertical restraint of trade. 
B)  horizontal restraint of trade. 
C)  tying arrangement. 
D)  monopoly. 
A)  vertical restraint of trade. 
B)  horizontal restraint of trade. 
C)  tying arrangement. 
D)  monopoly.

Question 6

Set forth when a monopolist has a duty to deal with its rivals and the four elements considered in determining such a duty.

Accepted Answer

A monopolist has a duty to deal with its

Question 7

Sections 1 and 2 of the Sherman Act have extraterritorial reach.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A PLAINTIFF MUST ESTABLISH THAT (1)THERE

Question 9

Market power is defined as the power to control prices or exclude competition in a relevant market.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Fact Pattern 16-1
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 16-1. Is the fact that no express words passed between Patty and Jason a defense to charges of antitrust violation?

Accepted Answer

A)  Yes, because direct evidence is required in order to establish an illegal agreement to fix prices. 
B)  Yes, both because direct evidence is required in order to establish an illegal agreement to fix prices and because the courts require evidence of an explicit agreement in such cases. 
C)  It is a defense to charges of criminal antitrust violations, but not to civil antitrust violations. 
D)  No, because a knowing wink can mean more than words. 
A)  Yes, because direct evidence is required in order to establish an illegal agreement to fix prices. 
B)  Yes, both because direct evidence is required in order to establish an illegal agreement to fix prices and because the courts require evidence of an explicit agreement in such cases. 
C)  It is a defense to charges of criminal antitrust violations, but not to civil antitrust violations. 
D)  No, because a knowing wink can mean more than words.

Question 12

A[n] ______ is made up of product or service offerings by different manufacturers or sellers that are economically interchangeable and may therefore be said to compete.

Accepted Answer

A)  interchangeable-brand product market 
B)  market power interchange 
C)  multiple-brand product market 
D)  A consumer surplus brand market 
A)  interchangeable-brand product market 
B)  market power interchange 
C)  multiple-brand product market 
D)  A consumer surplus brand market

Question 13

The merger of an airplane manufacturer and an airplane engine manufacturer would normally be considered a conglomerate merger.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true regarding monopoly law in China?

Accepted Answer

A)  Each offense is specifically set forth with no catch-all provisions. 
B)  It is not used against foreign investors. 
C)  It prevents behavior classified as abuse of dominant market position. 
D)  China lacks an anti-monopoly law although drafting has been in process for several years. 
A)  Each offense is specifically set forth with no catch-all provisions. 
B)  It is not used against foreign investors. 
C)  It prevents behavior classified as abuse of dominant market position. 
D)  China lacks an anti-monopoly law although drafting has been in process for several years.

Question 15

Which of the following is not true regarding Section 2 of the Sherman Act?

Accepted Answer

A)  Unilateral conduct may violate Section 2. 
B)  Section 2 allows the mere possession of monopoly power. 
C)  A firm violates Section 2 even if attains the monopoly power by superior performance. 
D)  The offense of monopolization has two elements: monopoly power and proof that the defendant willfully acquired or maintained that power through anticompetitive acts. 
A)  Unilateral conduct may violate Section 2. 
B)  Section 2 allows the mere possession of monopoly power. 
C)  A firm violates Section 2 even if attains the monopoly power by superior performance. 
D)  The offense of monopolization has two elements: monopoly power and proof that the defendant willfully acquired or maintained that power through anticompetitive acts.

Question 16

In the European Union,the principal rules of competition law are set forth in which of the following?

Accepted Answer

A)  The Treaty of Amsterdam and the Merger Control Regulation 
B)  The European Union Regulation and the Treaty of Amsterdam 
C)  Only the European Union Regulation 
D)  Only the Treaty of Amsterdam 
A)  The Treaty of Amsterdam and the Merger Control Regulation 
B)  The European Union Regulation and the Treaty of Amsterdam 
C)  Only the European Union Regulation 
D)  Only the Treaty of Amsterdam

Question 17

What types of price-fixing agreements are considered horizontal price-fixing?

Accepted Answer

Horizontal price-fixing agreements inclu

Question 18

_________ competition is competition between companies producing the same type of product.

Accepted Answer

A)  Intrabrand 
B)  Interbrand 
C)  Vertical 
D)  Oriented 
A)  Intrabrand 
B)  Interbrand 
C)  Vertical 
D)  Oriented

Question 19

Unilateral conduct may violate Section 1 of the Sherman Act under some circumstances.

Accepted Answer

A) True 
 B)False

Question 20

Explain the purpose and scope of the Robinson-Patman Act.What factors will courts use in determining whether or not a violation has occurred? Discuss fully.

Accepted Answer

The Robinson-Patman Act prohibits price

Exam 16: Antitrust

The European Union takes a stricter view of vertical territorial restraints because of their tendency to impede continent-wide market integration.

What was the result in Williamson Oil Co.v.Philip Morris USA,the case in the text in which it was alleged that tobacco companies had conspired to fix prices?

Which of the following is not an illegal horizontal market division?

Firms can incur liability under Section 2 of the Sherman Act by acquiring monopoly power through corporate mergers or acquisitions.

The agreement of all the commercial airlines not to lower their fares would be an example of a

Set forth when a monopolist has a duty to deal with its rivals and the four elements considered in determining such a duty.

Sections 1 and 2 of the Sherman Act have extraterritorial reach.

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

Market power is defined as the power to control prices or exclude competition in a relevant market.

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

A[n] ______ is made up of product or service offerings by different manufacturers or sellers that are economically interchangeable and may therefore be said to compete.

The merger of an airplane manufacturer and an airplane engine manufacturer would normally be considered a conglomerate merger.

Which of the following is true regarding monopoly law in China?

Which of the following is not true regarding Section 2 of the Sherman Act?

In the European Union,the principal rules of competition law are set forth in which of the following?

What types of price-fixing agreements are considered horizontal price-fixing?

_________ competition is competition between companies producing the same type of product.

Unilateral conduct may violate Section 1 of the Sherman Act under some circumstances.

Explain the purpose and scope of the Robinson-Patman Act.What factors will courts use in determining whether or not a violation has occurred? Discuss fully.

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