Question 1

Prices can be controlled through direct price fixing or by market allocation.

Accepted Answer

A) True 
 B)False

Question 2

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 3

It is per se illegal under the Sherman Act to set a maximum price, but not a minimum price.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Resulting from a Supreme Court decision, vertical territorial and customer restrictions are now illegal per se rather than being judged by the rule of reason.

Accepted Answer

A) True 
 B)False

Question 6

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 7

In tying arrangements, the courts may establish a seller's economic power by showing that:

Accepted Answer

A) the seller occupied a dominant position in the tying market. 
B) the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C) a substantial number of customers have accepted the tying arrangement and the sole explanation for their willingness to comply is the seller's economic power in the tying market. 
D) All of these. 
A) the seller occupied a dominant position in the tying market. 
B) the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C) a substantial number of customers have accepted the tying arrangement and the sole explanation for their willingness to comply is the seller's economic power in the tying market. 
D) All of these.

Question 8

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, corporate offenders who violate
Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Accepted Answer

A) True 
 B)False

Question 9

The Clayton Act:

Accepted Answer

A) was intended to stop certain trade practices before they become restraints of trade. 
B) added criminal sanctions to the Sherman Act. 
C) repealed the Robinson-Patman Act. 
D) included labor organizations in its coverage. 
A) was intended to stop certain trade practices before they become restraints of trade. 
B) added criminal sanctions to the Sherman Act. 
C) repealed the Robinson-Patman Act. 
D) included labor organizations in its coverage.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Widget Maker, Inc.manufactures and sells widgets.It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers.Does Marklin have liability for price discrimination? Does Widget Maker, Inc.have liability for price discrimination? Explain.

Accepted Answer

Widget Maker, Inc.has liability under th

Question 12

Which of the following remedies are available under the Sherman Act?

Accepted Answer

A) Injunctive 
B) Damages of four times the amount of actual loss sustained 
C) Consequential damages 
D) All of these 
A) Injunctive 
B) Damages of four times the amount of actual loss sustained 
C) Consequential damages 
D) All of these

Question 13

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 14

The Federal Trade Commission can act like a judicial body in conducting hearings and issuing orders to cease and desist.

Accepted Answer

A) True 
 B)False

Question 15

A manufacturer agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus .50 per bowl.This is:

Accepted Answer

A) horizontal price fixing. 
B) vertical price fixing. 
C) vertical market allocation. 
D) a group boycott. 
A) horizontal price fixing. 
B) vertical price fixing. 
C) vertical market allocation. 
D) a group boycott.

Question 16

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 17

If a type of restraint is characterized as per se illegal:

Accepted Answer

A) the plaintiff need only show that the type of restraint occurred. 
B) the defendants may defend on the basis that the restraint was reasonable. 
C) the court is required to conduct extensive economic analysis into the type of harm caused or the business excuse for use of the restraint. 
D) the plaintiff must prove that the restraint limited competition. 
A) the plaintiff need only show that the type of restraint occurred. 
B) the defendants may defend on the basis that the restraint was reasonable. 
C) the court is required to conduct extensive economic analysis into the type of harm caused or the business excuse for use of the restraint. 
D) the plaintiff must prove that the restraint limited competition.

Question 18

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.

Question 19

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller, this is known as a:

Accepted Answer

A) tying arrangement. 
B) vertical boycott. 
C) horizontal restraint. 
D) disparagement. 
A) tying arrangement. 
B) vertical boycott. 
C) horizontal restraint. 
D) disparagement.

Question 20

The Clayton Act deals with interlocking directorates.

Accepted Answer

A) True 
 B)False

Exam 40: Antitrust

Prices can be controlled through direct price fixing or by market allocation.

Conglomerate mergers have been challenged only where:

It is per se illegal under the Sherman Act to set a maximum price, but not a minimum price.

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.

Resulting from a Supreme Court decision, vertical territorial and customer restrictions are now illegal per se rather than being judged by the rule of reason.

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

In tying arrangements, the courts may establish a seller's economic power by showing that:

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

The Clayton Act:

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

Which of the following remedies are available under the Sherman Act?

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

The Federal Trade Commission can act like a judicial body in conducting hearings and issuing orders to cease and desist.

A manufacturer agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus .50 per bowl.This is:

The Clayton Act regulates all but which of the following?

If a type of restraint is characterized as per se illegal:

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

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller, this is known as a:

The Clayton Act deals with interlocking directorates.

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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