Exam 46: Antitrust Law and Unfair Trade Practices

Arlee owns a fast-food franchise.He purchases his supplies from various distributors around the area.Arlee's soft drink distributor decides not to deal with Arlee anymore,because Arlee is too demanding and always pays his bills late.Several other distributors individually reach the same decision.This action is:

Which of the following actions taken by a company with monopoly power would not give rise to a cause of action for monopolization or attempt to monopolize?

Which of the following organizations is exempt from the antitrust laws?

What is the legal significance of the distinction between rule of reason violations and per se violations under the Sherman Act?

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

With the increased globalization of business,and the lowering of trade barriers through agreements such as the North American Free Trade Agreement,should the determination of the relevant market be modified? For products or services where there are foreign firms competing in the United States market,are the antitrust laws obsolete?

The doctrine of conscious parallelism states that if competing firms reach similar independent judgments to not deal with a particular supplier,it will be considered evidence of a conspiracy.

Professional basketball and football have been found to be exempt from antitrust laws.

Texbeer Company manufactures and distributes beer only in Texas.National Breweries manufactures and distributes beer nationally,including in Texas.National lowers its prices in Texas,but nowhere else,selling its beer at below costs,to drive Texbeer out of business.Texbeer sues for price discrimination.In this situation,which of the following is true?

Rocketski has been in business for several years,and had acquired approximately a 5 percent share of the downhill ski market.During the seventh and eighth years in business,because of a design innovation,its sales increased to the point that it could not meet demand.At about the same time,Rocketski introduced a line of ski bindings that has not been very successful.Rocketski then made a slight modification to its ski so that its own bindings are the only ones that can be used without having to use a special adapter plate.Rocketski then began selling all of its skis as ski/binding packages.Some of the dealers objected,but went ahead and purchased from Rocketski because of the popularity of the product and because the package was reasonably priced.Most retailers are able to sell most of the packages to customers,but some customers who want Rocketskis want different bindings.Discuss the antitrust implications of these actions.

Which kind(s)of boycott(s)violate the antitrust laws?

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

A manufacturer makes two products,Axobos and Belandos.Axobos are in very high demand,but Belandos are not.The manufacturer requires everyone who wants to buy any Axobos to also buy some Belandos.This action is:

Vertical restraints on trade occur when two or more parties on different levels of distribution enter into a contract.

Under the Noerr doctrine two or more persons may petition the government to enact laws or take other action without violating the antitrust laws.

The term relevant market is important in determining a defendant's monopoly power.

Which of the following best describes horizontal division of markets?

If a hardware store chain on the East Coast merged with a hardware store chain on the West Coast,it would be a horizontal merger.

Today,resale price maintenance is a per se violation for both price floors and price ceilings.

Under the Sherman Act,some horizontal price-fixing arrangements are allowed under the rule of reason.