Exam 46: Antitrust Law and Unfair Trade Practices

Labor unions are exempt from antitrust laws.

Which of the following best describes the activities allowable under the Noerr doctrine?

A publishing company acquires a paper mill.This is an example of a:

If a merger allows two or more small companies to merge without liability under Section 7,then the court will permit the merger to take place.

A firm can unilaterally decide not to deal with another firm without violating the law.

Quantity or volume discounts are lawful to the extent they are supported by cost savings.

The first antitrust laws were passed in the late 1800s.

Which of the following is true about restraints of trade?

The U.S.Supreme Court has held the following actions by a distributor imposed on the retail sellers of its products will be evaluated under the rule of reason:

Real Value,Inc.is a national distributor of food items.It manufactures and distributes virtually every type of food product,but it does not have a breakfast cereal line.Mixing Mills is the nation's leading manufacturer and distributor of breakfast cereals,which is all that it produces.Real Value wants to merge with Mixing Mills.This would be what type of merger?

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

Price discrimination is lawful if it is in response to "changing conditions in the market or the marketability of the goods."

If a steel company acquired an iron mining company,it would be a vertical merger.

Sam and Amanda are both beer distributors in Center City.They agree not to sell beer to Skipper's Pizza Parlor because they find dealing with Skipper to be difficult.This action is:

Antitrust laws were designed to limit anticompetitive behavior.

Treble damages are available in a civil suit for violation of Section 5 of the Federal Trade Commission Act.

A car manufacturer sells several lines of cars with separate dealers for each line of cars.In some smaller markets,a single dealer may carry more than one line of the manufacturer's cars.Because of customer dissatisfaction over the traditional haggling and negotiating over new car prices,the manufacturer decides to change one of its car lines to fixed price/no negotiation selling.All dealers are required to adopt this policy.The suggested retail sticker price is lowered to become the actual selling price of the car rather than the traditional starting point for price negotiations.Discuss any antitrust implications of this policy.

A clothing maker requires the retailers it deals with to sell all the clothing at a fixed price.In examining a retailer's challenge to this practice,a court would:

Bargain Basement,Inc.is a discount house.It buys brand name products from various manufacturers and sells them at below the suggested retail price.This practice has angered some of those manufacturers who believe that their products are high quality and should not be sold at bargain basement prices.Several of those manufacturers agree that they will no longer sell their products to Bargain Basement.This action is:

If Any Town Blinds,a mini-blind manufacturer,sells its mini-blinds to retailers that agree to resell them at the prices set by the manufacturer,then Any Town Blinds would be involved in a violation of Section 1 of the Sherman Act.