Question 1

Exclusive dealing contracts are per se violations.

Accepted Answer

A) True 
 B)False

Question 2

Meeting the competition is a defense to price discrimination.

Accepted Answer

A) True 
 B)False

Question 3

Universal Syndication has told television stations and networks that they cannot have the rights to play"Friends" reruns unless they also agree to take packages of Charlie Chan movies,Tony Orlando and Dawn,and Rin Tin Tin reruns.The stations and networks complain that Chan movies,Tony,and Rin Tin Tin reruns do not draw viewers and that they have trouble selling the ad time on such shows.Universal Syndication's requirement:

Accepted Answer

A) is a tying arrangement that is a per se violation of federal antitrust law. 
B) is a tying arrangement that may be a violation of federal antitrust law. 
C) is one that it is free to impose so long as other syndicators are selling shows. 
D) none of the above 
A) is a tying arrangement that is a per se violation of federal antitrust law. 
B) is a tying arrangement that may be a violation of federal antitrust law. 
C) is one that it is free to impose so long as other syndicators are selling shows. 
D) none of the above

Question 4

If clients of a brokerage house feel that there are anticompetitive activities being used among and between the various brokerage houses that result in price impacts for them,then:

Accepted Answer

A) their remedy is under the Sherman Act for price fixing or monopolization. 
B) their remedy is under the Clayton Act for vertical price discrimination. 
C) their remedy is under the federal securities laws and regulations. 
D) none of the above 
A) their remedy is under the Sherman Act for price fixing or monopolization. 
B) their remedy is under the Clayton Act for vertical price discrimination. 
C) their remedy is under the federal securities laws and regulations. 
D) none of the above

Question 5

Pat's Bicycle Shop is a Schwinn dealer.In order to be such a dealer,Pat's has to agree not to carry other brands of bicycles.Is this agreement illegal?

Accepted Answer

Key is interbrand competition

Question 6

The American Kennel Club (AKC),an independent organization that establishes standards for breeding and for certification of purebred dogs issued standards for all purebred dog breeds and recommended standards for Labradors.The result was that an English strain of Labradors did not meet the minimum height standards that the AKC recommended,and U.S.breeders of a taller American strain were able to monopolize the market for championship dogs.Which of the following statements is correct?

Accepted Answer

A) The AKC has violated the Sherman Act. 
B) The AKC, however well intentioned, cannot impose standards on an industry. 
C) The AKC has not violated the Sherman Act. 
D) The AKC has violated the Sherman Act if U.S.breeders did benefit from the standards. 
A) The AKC has violated the Sherman Act. 
B) The AKC, however well intentioned, cannot impose standards on an industry. 
C) The AKC has not violated the Sherman Act. 
D) The AKC has violated the Sherman Act if U.S.breeders did benefit from the standards.

Question 7

The ability of a customer to control the prices of a supplier in a market is a monopsony.

Accepted Answer

A) True 
 B)False

Question 8

Covenants not to compete are illegal per se.

Accepted Answer

A) True 
 B)False

Question 9

Equitable remedies are not available under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 10

Vertical mergers are:

Accepted Answer

A) mergers between competitors. 
B) mergers between buyers and sellers. 
C) per se violations of antitrust laws. 
D) none of the above 
A) mergers between competitors. 
B) mergers between buyers and sellers. 
C) per se violations of antitrust laws. 
D) none of the above

Question 11

Tying arrangements are per se antitrust violations.

Accepted Answer

A) True 
 B)False

Question 12

Price control consignments are treated as forms of resale price maintenance.

Accepted Answer

A) True 
 B)False

Question 13

Suggested retail prices sent to retailers by the manufacturer constitute:

Accepted Answer

A) resale price maintenance. 
B) price fixing. 
C) a violation of the antitrust laws if the suggested prices are enforced. 
D) none of the above 
A) resale price maintenance. 
B) price fixing. 
C) a violation of the antitrust laws if the suggested prices are enforced. 
D) none of the above

Question 14

Jay Farnswood is the president of a local group of real estate agents.At their monthly luncheon meeting,Farnswood stood and told his colleagues that he simply could not survive by charging the 5 percent commission rate and noted,"I don't know what the rest of you are going to do,but I am going to charge 6 percent commission on all my listings starting today." Farnswood's statements:

Accepted Answer

A) constitute price fixing. 
B) only reflect his intentions; there is no agreement to fix prices. 
C) constitute an attempt to monopolize. 
D) none of the above 
A) constitute price fixing. 
B) only reflect his intentions; there is no agreement to fix prices. 
C) constitute an attempt to monopolize. 
D) none of the above

Question 15

Treble damages are recoverable for actions brought under:

Accepted Answer

A) the Sherman Act. 
B) the FTC Act. 
C) the Antitrust Improvements Act. 
D) all of the above 
A) the Sherman Act. 
B) the FTC Act. 
C) the Antitrust Improvements Act. 
D) all of the above

Question 16

Which of the following activities is not covered in the Sherman Act?

Accepted Answer

A) attempts to monopolize 
B) price fixing 
C) boycotts 
D) price discrimination 
A) attempts to monopolize 
B) price fixing 
C) boycotts 
D) price discrimination

Question 17

Competition restraints in commercial leases are generally valid.

Accepted Answer

A) True 
 B)False

Question 18

Homer,Inc.is the western regional distributor for Plato Ice Cream.Homer charges grocers in California $3.00 per half gallon but charges Utah grocers only $2.00 per half gallon.Homer says the Utah ice cream market is much more competitive and he has to meet the market.Utah competitors charge between $2.50 and $2.75 per half gallon.Homer:

Accepted Answer

A) has engaged in price discrimination. 
B) is simply meeting the competition. 
C) is exempt from Robinson-Patman because of interstate sales. 
D) none of the above 
A) has engaged in price discrimination. 
B) is simply meeting the competition. 
C) is exempt from Robinson-Patman because of interstate sales. 
D) none of the above

Question 19

Quantity discounts violate the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 20

Generic brands can carry a lesser price than brand-name products even though identical in composition without experiencing price discrimination difficulties.

Accepted Answer

A) True 
 B)False

Exclusive dealing contracts are per se violations.

Meeting the competition is a defense to price discrimination.

If clients of a brokerage house feel that there are anticompetitive activities being used among and between the various brokerage houses that result in price impacts for them,then:

Pat's Bicycle Shop is a Schwinn dealer.In order to be such a dealer,Pat's has to agree not to carry other brands of bicycles.Is this agreement illegal?

The ability of a customer to control the prices of a supplier in a market is a monopsony.

Covenants not to compete are illegal per se.

Equitable remedies are not available under the Sherman Act.

Vertical mergers are:

Tying arrangements are per se antitrust violations.

Price control consignments are treated as forms of resale price maintenance.

Suggested retail prices sent to retailers by the manufacturer constitute:

Treble damages are recoverable for actions brought under:

Which of the following activities is not covered in the Sherman Act?

Competition restraints in commercial leases are generally valid.

Quantity discounts violate the Robinson-Patman Act.

Generic brands can carry a lesser price than brand-name products even though identical in composition without experiencing price discrimination difficulties.

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

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Exam 14: Business Competition: Antitrust

Exclusive dealing contracts are per se violations.

Meeting the competition is a defense to price discrimination.

If clients of a brokerage house feel that there are anticompetitive activities being used among and between the various brokerage houses that result in price impacts for them,then:

Pat's Bicycle Shop is a Schwinn dealer.In order to be such a dealer,Pat's has to agree not to carry other brands of bicycles.Is this agreement illegal?

The ability of a customer to control the prices of a supplier in a market is a monopsony.

Covenants not to compete are illegal per se.

Equitable remedies are not available under the Sherman Act.

Vertical mergers are:

Tying arrangements are per se antitrust violations.

Price control consignments are treated as forms of resale price maintenance.

Suggested retail prices sent to retailers by the manufacturer constitute:

Treble damages are recoverable for actions brought under:

Which of the following activities is not covered in the Sherman Act?

Competition restraints in commercial leases are generally valid.

Quantity discounts violate the Robinson-Patman Act.

Generic brands can carry a lesser price than brand-name products even though identical in composition without experiencing price discrimination difficulties.

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