Question 1

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Accepted Answer

A) unfair conduct. 
B) concerted action. 
C) competitive behavior. 
D) economic advantage. 
A) unfair conduct. 
B) concerted action. 
C) competitive behavior. 
D) economic advantage.

Question 2

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 3

What are the major functions of the Federal Trade Commission (FTC)?

Accepted Answer

The Federal Trade Commission has two maj

Question 4

If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman
Act.

Accepted Answer

A) True 
 B)False

Question 5

The more narrowly that a product market is defined as being, the more likely that the firm will be found to possess monopoly power.

Accepted Answer

A) True 
 B)False

Question 6

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Accepted Answer

A) True 
 B)False

Question 7

A corporation may be guilty of a criminal felony violation of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 8

Antitrust law, as currently applied, focuses on the resulting entity's absolute size.

Accepted Answer

A) True 
 B)False

Question 9

All tying arrangements are per se illegal.

Accepted Answer

A) True 
 B)False

Question 10

Determining how big the corporation is in terms of total assets is the prevalent test of monopoly power.

Accepted Answer

A) True 
 B)False

Question 11

The distinction between horizontal and vertical restraints often determines whether a restraint is illegal per se or should be judged by the rule of reason test.

Accepted Answer

A) True 
 B)False

Question 12

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Accepted Answer

A) True 
 B)False

Question 13

The 1936 Act prohibiting price discrimination in interstate commerce involving commodities of like grade and quality is the:

Accepted Answer

A) Sherman Act. 
B) Clayton Act. 
C) Robinson-Patman Act. 
D) Federal Trade Commission Act. 
A) Sherman Act. 
B) Clayton Act. 
C) Robinson-Patman Act. 
D) Federal Trade Commission Act.

Question 14

Conscious parallelism is sufficient in itself to suggest a conspiracy in violation of Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 15

The principal objective of antitrust law governing mergers is to maintain competition.

Accepted Answer

A) True 
 B)False

Question 16

If Hyvac Vacuum Cleaners requires that Hyvac bags be used for the warranty to be valid, under the Sherman Act, this is:

Accepted Answer

A) illegal per se. 
B) a tying arrangement, which is always judged by rule of reason. 
C) either illegal per se or judged by the rule of reason depending on the economic power of the seller and the amount of interstate commerce in cleaner bags affected. 
D) no violation. 
A) illegal per se. 
B) a tying arrangement, which is always judged by rule of reason. 
C) either illegal per se or judged by the rule of reason depending on the economic power of the seller and the amount of interstate commerce in cleaner bags affected. 
D) no violation.

Question 17

The language of Section 1 of the Sherman Act prohibits every contract that restrains trade, and the courts have interpreted this prohibition literally so as to invalidate all such contracts.

Accepted Answer

A) True 
 B)False

Question 18

The 1992 Horizontal Merger Guidelines, as revised in 1997 and 2010:

Accepted Answer

A) were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B) require a mechanical application; in order to reduce the previously used analytical framework, which was far too subjective and uncertain. 
C) rejects use of the Herfindahl-Hirschman Index. 
D) deals with mergers of powerful buyers and mergers between competing buyers. 
A) were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B) require a mechanical application; in order to reduce the previously used analytical framework, which was far too subjective and uncertain. 
C) rejects use of the Herfindahl-Hirschman Index. 
D) deals with mergers of powerful buyers and mergers between competing buyers.

Exam 40: Antitrust

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

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

What are the major functions of the Federal Trade Commission (FTC)?

If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman Act.

The more narrowly that a product market is defined as being, the more likely that the firm will be found to possess monopoly power.

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

A corporation may be guilty of a criminal felony violation of the Sherman Act.

Antitrust law, as currently applied, focuses on the resulting entity's absolute size.

All tying arrangements are per se illegal.

Determining how big the corporation is in terms of total assets is the prevalent test of monopoly power.

The distinction between horizontal and vertical restraints often determines whether a restraint is illegal per se or should be judged by the rule of reason test.

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

The 1936 Act prohibiting price discrimination in interstate commerce involving commodities of like grade and quality is the:

Conscious parallelism is sufficient in itself to suggest a conspiracy in violation of Section 1 of the Sherman Act.

The principal objective of antitrust law governing mergers is to maintain competition.

If Hyvac Vacuum Cleaners requires that Hyvac bags be used for the warranty to be valid, under the Sherman Act, this is:

The language of Section 1 of the Sherman Act prohibits every contract that restrains trade, and the courts have interpreted this prohibition literally so as to invalidate all such contracts.

The 1992 Horizontal Merger Guidelines, as revised in 1997 and 2010:

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.

Filters