Question 1

Price fixing is the primary example of a per se violation of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 2

The Clayton Act regulates all but which of the following?

Accepted Answer

A)  Price discrimination 
B)  Tying contracts and mergers 
C)  Exclusive dealing by labor organizations 
D)  Interlocking directorates 
A)  Price discrimination 
B)  Tying contracts and mergers 
C)  Exclusive dealing by labor organizations 
D)  Interlocking directorates

Question 3

To determine "market share," one would require knowledge of which of the following?

Accepted Answer

A)  What other products compete with the product 
B)  Where the product is sold 
C)  How much of the product is sold 
D)  All of these 
A)  What other products compete with the product 
B)  Where the product is sold 
C)  How much of the product is sold 
D)  All of these

Question 4

The Justice Department has issued a "market structure screen," under which the department will not challenge
restraints by a firm having less than 25 percent of the relevant market.

Accepted Answer

A) True 
 B)False

Question 5

The court interpretation of the Sherman Act results in the prohibition of monopolies only if a firm possesses market power that it attained unfairly or it abused the monopoly power once attained.

Accepted Answer

A) True 
 B)False

Question 6

Because the language of Section 1 of the Sherman Act is so narrow, there is little room for judicial interpretation in establishing what constitutes a violation.

Accepted Answer

A) True 
 B)False

Question 7

The Robinson-Patman Act adds to the Clayton Act merger provisions.

Accepted Answer

A) True 
 B)False

Question 8

Meeting competition is a defense to a charge of price discrimination under the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 9

A monopolistic market will produce more goods than a competitive market; however, the problem the Sherman Act tries to address is the fact that a monopolistic market will sell those goods at a higher price than a competitive market.

Accepted Answer

A) True 
 B)False

Question 10

If one major U.S. car manufacturer acquired another, the Clayton Act would require close scrutiny of the transaction.

Accepted Answer

A) True 
 B)False

Question 11

The Federal Trade Commission has only three commissioners.

Accepted Answer

A) True 
 B)False

Question 12

Conglomerate mergers have been challenged only where:

Accepted Answer

A)  one of the merging firms would be highly likely to enter the market of the other firm. 
B)  the merged company would be disproportionately large compared with the largest competitors in its industry. 
C)  Both of these. 
D)  None of these. 
A)  one of the merging firms would be highly likely to enter the market of the other firm. 
B)  the merged company would be disproportionately large compared with the largest competitors in its industry. 
C)  Both of these. 
D)  None of these.

Question 13

Enforcement proceedings under the Sherman Act may not be brought by the:

Accepted Answer

A)  U.S. Commerce Department. 
B)  U.S. Justice Department. 
C)  Federal Trade Commission. 
D)  state Attorneys General. 
A)  U.S. Commerce Department. 
B)  U.S. Justice Department. 
C)  Federal Trade Commission. 
D)  state Attorneys General.

Question 14

The Clayton Act deals with interlocking directorates.

Accepted Answer

A) True 
 B)False

Question 15

Failure to comply with Sections 1 or 2 of the Sherman Act:

Accepted Answer

A)  is a felony and can result in imprisonment. 
B)  may subject an individual to a fine of up to $1 million under the 2004 amendments. 
C)  may subject a corporation to a fine of $100 million per violation. 
D)  All of these. 
A)  is a felony and can result in imprisonment. 
B)  may subject an individual to a fine of up to $1 million under the 2004 amendments. 
C)  may subject a corporation to a fine of $100 million per violation. 
D)  All of these.

Question 16

All price discrimination is illegal under the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 17

A wholesale manufacturer gets a retail outlet for its goods through a merger. This is a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 18

A merger involving firms that are not competitors, customers, or suppliers is termed a:

Accepted Answer

A)  tying arrangement. 
B)  vertical merger. 
C)  conglomerate merger. 
D)  horizontal merger. 
A)  tying arrangement. 
B)  vertical merger. 
C)  conglomerate merger. 
D)  horizontal merger.

Question 19

Under Section 1 of the Sherman Act, which of the following is illegal per se?

Accepted Answer

A)  Vertical market allocations 
B)  Horizontal market allocations 
C)  Vertical territorial and customer restrictions 
D)  All of these. 
A)  Vertical market allocations 
B)  Horizontal market allocations 
C)  Vertical territorial and customer restrictions 
D)  All of these.

Question 20

A restraint involving collaboration among competitors at the same level in the chain of distribution is:

Accepted Answer

A)  a vertical restraint. 
B)  a horizontal restraint. 
C)  price fixing. 
D)  a trust. 
A)  a vertical restraint. 
B)  a horizontal restraint. 
C)  price fixing. 
D)  a trust.

Exam 40: Antitrust

Price fixing is the primary example of a per se violation of the Sherman Act.

The Clayton Act regulates all but which of the following?

To determine "market share," one would require knowledge of which of the following?

The Justice Department has issued a "market structure screen," under which the department will not challenge restraints by a firm having less than 25 percent of the relevant market.

The court interpretation of the Sherman Act results in the prohibition of monopolies only if a firm possesses market power that it attained unfairly or it abused the monopoly power once attained.

Because the language of Section 1 of the Sherman Act is so narrow, there is little room for judicial interpretation in establishing what constitutes a violation.

The Robinson-Patman Act adds to the Clayton Act merger provisions.

Meeting competition is a defense to a charge of price discrimination under the Robinson-Patman Act.

A monopolistic market will produce more goods than a competitive market; however, the problem the Sherman Act tries to address is the fact that a monopolistic market will sell those goods at a higher price than a competitive market.

If one major U.S. car manufacturer acquired another, the Clayton Act would require close scrutiny of the transaction.

The Federal Trade Commission has only three commissioners.

Conglomerate mergers have been challenged only where:

Enforcement proceedings under the Sherman Act may not be brought by the:

The Clayton Act deals with interlocking directorates.

Failure to comply with Sections 1 or 2 of the Sherman Act:

All price discrimination is illegal under the Robinson-Patman Act.

A wholesale manufacturer gets a retail outlet for its goods through a merger. This is a horizontal merger.

A merger involving firms that are not competitors, customers, or suppliers is termed a:

Under Section 1 of the Sherman Act, which of the following is illegal per se?

A restraint involving collaboration among competitors at the same level in the chain of distribution is:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property