Question 1

Group boycotts are per se violations.

Accepted Answer

A) True 
 B)False  True

Question 2

Following a crash of an Amtrak train between Philadelphia and New York,the eastern corridor north-south route was shut down.Commuters between Washington,D.C.,Philadelphia,and New York City were affected.Many had to resort to air travel.At the time of the shut-down,the airlines serving this corridor raised their airfares.Commuters complained that they were quoted prices of $2,000 for air fares in the route that normally ranged from $300-$500.What would constitute an antitrust violation?​

Accepted Answer

A) ​if the airlines raised their rates in response to the new demand 
B) ​if the airlines communicated to each other about raising the fares 
C) if there was conscious parallelism on raising the fares 
D) if the rates were higher than Amtrak rates 
A) ​if the airlines raised their rates in response to the new demand 
B) ​if the airlines communicated to each other about raising the fares 
C) if there was conscious parallelism on raising the fares 
D) if the rates were higher than Amtrak rates B

Question 3

Monopoly power is the power to control prices or exclude competition.

Accepted Answer

A) True 
 B)False  False

Question 4

Customer and territorial restrictions are per se antitrust violations.

Accepted Answer

A) True 
 B)False

Question 5

Gringo's Restaurant is a small restaurant located in a Mesa,Arizona,neighborhood shopping center that has a grocery store (chain)as its anchor tenant.Carl Williams owns Gringo's and has just negotiated its sale to Wilma Freestone.The covenant not to compete provides that Williams will not open a competing restaurant anywhere within a two-mile radius of Gringo's for a period of two years.The noncompete covenant is:

Accepted Answer

A) too restrictive and is a violation of the Sherman Act. 
B) not subject to review so long as it is part of the sales contract. 
C) probably reasonable and enforceable. 
D) void 
A) too restrictive and is a violation of the Sherman Act. 
B) not subject to review so long as it is part of the sales contract. 
C) probably reasonable and enforceable. 
D) void

Question 6

The Antitrust Modernization Commissionproposed material changes in the antitrust laws to accommodate e-commerce market changes.

Accepted Answer

A) True 
 B)False

Question 7

Covenants not to compete cannot be used in agreements for the sale of businesses.

Accepted Answer

A) True 
 B)False

Question 8

A covenant not to compete in a contract for the sale of a business protects the goodwill of the existing business for the buyer.

Accepted Answer

A) True 
 B)False

Question 9

Manufacturers who refuse to deal with discount houses have committed a per se violation of the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 10

Predatory pricing is:

Accepted Answer

A) pricing below cost. 
B) per se illegal. 
C) price discrimination. 
D) none of the above 
A) pricing below cost. 
B) per se illegal. 
C) price discrimination. 
D) none of the above

Question 11

What would be a defense that merging companies could use if the Justice Department tried to block their merger?​

Accepted Answer

A) ​failing company doctrine 
B) ​definition of the product market 
C) ability of new companies to start in the market 
D) all of the above 
A) ​failing company doctrine 
B) ​definition of the product market 
C) ability of new companies to start in the market 
D) all of the above

Question 12

Horizontal mergers:

Accepted Answer

A) include mergers between manufacturers and jobbers. 
B) can be approved if a failing company is acquired. 
C) are always antitrust violations. 
D) none of the above 
A) include mergers between manufacturers and jobbers. 
B) can be approved if a failing company is acquired. 
C) are always antitrust violations. 
D) none of the above

Question 13

The interstate commerce jurisdictional standard for the Sherman Act requires proof of transactions across state lines.

Accepted Answer

A) True 
 B)False

Question 14

A defense to tying is quality control.

Accepted Answer

A) True 
 B)False

Question 15

Expedia,a third-party online travel-booking company proposed an acquisition of Orbitz,another third-party online travel-booking company.Several hotel companies and consumer advocates objected on the grounds that the result would be that the merged company would control 75% of the third-party online booking business.What standard will the Justice Department apply in determining whether to approve the merger​?

Accepted Answer

A) ​whether the merger will affect competition 
B) ​the views of the hotels and consumer advocates 
C) the quality of service at Orbitz 
D) the fairness of the merger terms 
A) ​whether the merger will affect competition 
B) ​the views of the hotels and consumer advocates 
C) the quality of service at Orbitz 
D) the fairness of the merger terms

Question 16

Private parties can bring suit under the Federal Trade Commission Act.

Accepted Answer

A) True 
 B)False

Question 17

Cross-elasticity of demand is irrelevant in determining the product market.

Accepted Answer

A) True 
 B)False

Question 18

Fair trade laws are still in effect in many states.

Accepted Answer

A) True 
 B)False

Question 19

Exclusive distributorships are:

Accepted Answer

A) covered under the Robinson-Patman Act. 
B) illegal per se. 
C) questioned when there is no interbrand competition. 
D) all of the above 
A) covered under the Robinson-Patman Act. 
B) illegal per se. 
C) questioned when there is no interbrand competition. 
D) all of the above

Question 20

Which of the following is not regulated by the Clayton Act?

Accepted Answer

A) interlocking directorates 
B) mergers 
C) tying sales 
D) monopolization 
E) All of the above are regulated by the Clayton Act. 
A) interlocking directorates 
B) mergers 
C) tying sales 
D) monopolization 
E) All of the above are regulated by the Clayton Act.

Group boycotts are per se violations.

Monopoly power is the power to control prices or exclude competition.

Customer and territorial restrictions are per se antitrust violations.

The Antitrust Modernization Commissionproposed material changes in the antitrust laws to accommodate e-commerce market changes.

Covenants not to compete cannot be used in agreements for the sale of businesses.

A covenant not to compete in a contract for the sale of a business protects the goodwill of the existing business for the buyer.

Manufacturers who refuse to deal with discount houses have committed a per se violation of the antitrust laws.

Predatory pricing is:

What would be a defense that merging companies could use if the Justice Department tried to block their merger?

Horizontal mergers:

The interstate commerce jurisdictional standard for the Sherman Act requires proof of transactions across state lines.

A defense to tying is quality control.

Private parties can bring suit under the Federal Trade Commission Act.

Cross-elasticity of demand is irrelevant in determining the product market.

Fair trade laws are still in effect in many states.

Exclusive distributorships are:

Which of the following is not regulated by the Clayton Act?

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 14: Business Competition: Antitrust

Group boycotts are per se violations.

Monopoly power is the power to control prices or exclude competition.

Customer and territorial restrictions are per se antitrust violations.

The Antitrust Modernization Commissionproposed material changes in the antitrust laws to accommodate e-commerce market changes.

Covenants not to compete cannot be used in agreements for the sale of businesses.

A covenant not to compete in a contract for the sale of a business protects the goodwill of the existing business for the buyer.

Manufacturers who refuse to deal with discount houses have committed a per se violation of the antitrust laws.

Predatory pricing is:

What would be a defense that merging companies could use if the Justice Department tried to block their merger?​

Horizontal mergers:

The interstate commerce jurisdictional standard for the Sherman Act requires proof of transactions across state lines.

A defense to tying is quality control.

Private parties can bring suit under the Federal Trade Commission Act.

Cross-elasticity of demand is irrelevant in determining the product market.

Fair trade laws are still in effect in many states.

Exclusive distributorships are:

Which of the following is not regulated by the Clayton Act?

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

What would be a defense that merging companies could use if the Justice Department tried to block their merger?