Question 1

Companies with substantial assets must notify the FTC before consummating a merger.

Accepted Answer

A) True 
 B)False

Question 2

Resale pricemaintenance (RPM),also called vertical price fixing is not always illegal.It is a rule of reason violation.

Accepted Answer

A) True 
 B)False

Question 3

Violations of antitrust law are either per se violations or rule of reason violations.What are the differences between these two types of violations? Give examples of each.

Accepted Answer

A per se violation is a violation that i

Question 4

Explain horizontal price-fixing and vertical minimum and maximum price-fixing.Discuss their status under antitrust laws.

Accepted Answer

Horizontal price-fixing is the agreement

Question 5

A marketing representative who is tempted to engage in price-fixing due to heavy competition and similar prices for competitors' products should:

Accepted Answer

A) emphasize factors of her product that do not involve price. 
B) emphasize service,reliability,and other factors of her company. 
C) understand the serious criminal and civil penalties of engaging in price-fixing. 
D) All the above. 
A) emphasize factors of her product that do not involve price. 
B) emphasize service,reliability,and other factors of her company. 
C) understand the serious criminal and civil penalties of engaging in price-fixing. 
D) All the above.

Question 6

The following is a violation of the Sherman Abnti Trust Act.

Accepted Answer

A) Setting the minimum price for an item. 
B) Lowering prices to put a competitor out of business. 
C) Monopolize a market 
D) all of the above 
A) Setting the minimum price for an item. 
B) Lowering prices to put a competitor out of business. 
C) Monopolize a market 
D) all of the above

Question 7

The Sarbanes-Oxley Act makes it a crime to retaliate against someone who blows the whistle on any federal offense.

Accepted Answer

A) True 
 B)False

Question 8

Smalltown has two family-owned hardware stores that have been in business for years.Major Hardware decides that Smalltown would be a good place to build one of its superstores.Major opens,advertising unbelievably low prices;in fact,at below cost.Because Major owns stores nationally,it is able to keep prices extremely low until both of the family-owned stores have to go out of business because they cannot compete.After Major is the only hardware store in town,it raises its prices enough to make up for its former losses and to make some additional profit.Discuss this behavior in relation to antitrust law.

Accepted Answer

Major has engaged in predatory pricing.I

Question 9

What law prohibits mergers that are anti-competitive?

Accepted Answer

A) Sherman Act. 
B) Clayton Act. 
C) Robinson-Patman Act. 
D) Radmon Act. 
A) Sherman Act. 
B) Clayton Act. 
C) Robinson-Patman Act. 
D) Radmon Act.

Question 10

A major motion picture distributor offers to provide a television station with three very popular,desirable films.However,as part of the agreement,the distributor requires that the television station also purchase four films that are not very desirable.This type of arrangement is called a:

Accepted Answer

A) reciprocal dealing agreement. 
B) reverter arrangement. 
C) joint custody arrangement. 
D) tying arrangement. 
A) reciprocal dealing agreement. 
B) reverter arrangement. 
C) joint custody arrangement. 
D) tying arrangement.

Question 11

The 1934 Act requires companies with a class of stock that is publicly traded to make regular filings with the SEC.

Accepted Answer

A) True 
 B)False

Question 12

If a company has violated antitrust laws:

Accepted Answer

A) the Justice Department can initiate only noncriminal charges against the violator. 
B) the Federal Trade Commission may file criminal proceedings against the violator. 
C) any private person or company that has been harmed by the violator can file a lawsuit to recover damages. 
D) All the above. 
A) the Justice Department can initiate only noncriminal charges against the violator. 
B) the Federal Trade Commission may file criminal proceedings against the violator. 
C) any private person or company that has been harmed by the violator can file a lawsuit to recover damages. 
D) All the above.

Question 13

Jackie learned of insider trading information while talking to Mark,a director of a large corporation.She took advantage of the information to buy stock and make a huge financial gain.If she is accused of violating securities law,what must the government prove in order to gain a conviction against Jackie?

Accepted Answer

The government must prove that (1)Jackie

Question 14

The U.S.Attorney General brought a Sherman Act lawsuit against competitors in the widget market.The Attorney General alleged that these companies agreed to charge $20 for widgets.Which of the following defenses may apply?

Accepted Answer

A) That the $20 price was fair. 
B) That the $20 price was lower than the price before the agreement. 
C) That the businesses did not agree to charge $20 for widgets. 
D) That the competitors would have gone out of business without the agreement. 
A) That the $20 price was fair. 
B) That the $20 price was lower than the price before the agreement. 
C) That the businesses did not agree to charge $20 for widgets. 
D) That the competitors would have gone out of business without the agreement.

Question 15

The only defense available to a defendant in a per se violation is that the violation never occurred.

Accepted Answer

A) True 
 B)False

Question 16

A monopoly is illegal:

Accepted Answer

A) under any circumstances,under Section 2 of the Sherman Act. 
B) only if it is gained or maintained by using wrongful tactics. 
C) if you have greater than 50 percent of market share. 
D) any time there are no interchangeable products. 
A) under any circumstances,under Section 2 of the Sherman Act. 
B) only if it is gained or maintained by using wrongful tactics. 
C) if you have greater than 50 percent of market share. 
D) any time there are no interchangeable products.

Question 17

Per se violations are subject to both civil and criminal penalties.

Accepted Answer

A) True 
 B)False

Question 18

Assume that three automobile manufacturers all merged into one car company.Such a merger would be a:

Accepted Answer

A) vertical merger. 
B) vertical cooperative arrangement merger. 
C) horizontal merger. 
D) intracompetitive merger. 
A) vertical merger. 
B) vertical cooperative arrangement merger. 
C) horizontal merger. 
D) intracompetitive merger.

Question 19

Both per se and rule of reason violations of the Sherman Act are automatically illegal.

Accepted Answer

A) True 
 B)False

Question 20

When the per se standard applies,the plaintiff:

Accepted Answer

A) needs only to prove the existence of the conduct. 
B) must prove that the activity was an unreasonable restraint of trade. 
C) must show that there was an anti-competitive impact. 
D) None of the above. 
A) needs only to prove the existence of the conduct. 
B) must prove that the activity was an unreasonable restraint of trade. 
C) must show that there was an anti-competitive impact. 
D) None of the above.

Exam 30: Government Regulations:Securities and Antitrust

Companies with substantial assets must notify the FTC before consummating a merger.

Resale pricemaintenance (RPM),also called vertical price fixing is not always illegal.It is a rule of reason violation.

Violations of antitrust law are either per se violations or rule of reason violations.What are the differences between these two types of violations? Give examples of each.

Explain horizontal price-fixing and vertical minimum and maximum price-fixing.Discuss their status under antitrust laws.

A marketing representative who is tempted to engage in price-fixing due to heavy competition and similar prices for competitors' products should:

The following is a violation of the Sherman Abnti Trust Act.

The Sarbanes-Oxley Act makes it a crime to retaliate against someone who blows the whistle on any federal offense.

What law prohibits mergers that are anti-competitive?

A major motion picture distributor offers to provide a television station with three very popular,desirable films.However,as part of the agreement,the distributor requires that the television station also purchase four films that are not very desirable.This type of arrangement is called a:

The 1934 Act requires companies with a class of stock that is publicly traded to make regular filings with the SEC.

If a company has violated antitrust laws:

The U.S.Attorney General brought a Sherman Act lawsuit against competitors in the widget market.The Attorney General alleged that these companies agreed to charge $20 for widgets.Which of the following defenses may apply?

The only defense available to a defendant in a per se violation is that the violation never occurred.

A monopoly is illegal:

Per se violations are subject to both civil and criminal penalties.

Assume that three automobile manufacturers all merged into one car company.Such a merger would be a:

Both per se and rule of reason violations of the Sherman Act are automatically illegal.

When the per se standard applies,the plaintiff:

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