Question 1

Maximum price requirements:

Accepted Answer

A) do not constitute antitrust violations because of the benefits to consumers. 
B) only affect the amount sold and not the competition; and there is no antitrust violation. 
C) constitute resale price maintenance. 
D) none of the above 
A) do not constitute antitrust violations because of the benefits to consumers. 
B) only affect the amount sold and not the competition; and there is no antitrust violation. 
C) constitute resale price maintenance. 
D) none of the above

Question 2

Which of the following $\underline{\text{not}}$ a per se violation of the antitrust laws?

Accepted Answer

A) price fixing. 
B) group boycotts. 
C) predatory pricing. 
D) division of markets. 
E) All of the above are per se violations. 
A) price fixing. 
B) group boycotts. 
C) predatory pricing. 
D) division of markets. 
E) All of the above are per se violations.

Question 3

Predatory pricing below cost with monopoly poweris illegal.

Accepted Answer

A) True 
 B)False

Question 4

The Antitrust Improvements Act gave the Justice Department broader investigative authority.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would $\underline{\text{not}}$  be price fixing?

Accepted Answer

A) agreements to limit production 
B) agreements to limit competitive bidding 
C) agreements to charge the same interest on credit contracts 
D) All of the above are price fixing. 
A) agreements to limit production 
B) agreements to limit competitive bidding 
C) agreements to charge the same interest on credit contracts 
D) All of the above are price fixing.

Question 6

The judicial approach to antitrust cases is one of weighing benefits to competition.

Accepted Answer

A) True 
 B)False

Question 7

Fair trade contracts:

Accepted Answer

A) can no longer be allowed by the states. 
B) are contracts that prohibit exclusive distributorships. 
C) are permissible between manufacturers and retailers. 
D) none of the above 
A) can no longer be allowed by the states. 
B) are contracts that prohibit exclusive distributorships. 
C) are permissible between manufacturers and retailers. 
D) none of the above

Question 8

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry,"the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.The result is that 93 percent of all new pools have the system,and 94 percent of all pool owners buying replacement systems choose Pool Line.The relevant product market is:

Accepted Answer

A) pool cleaning systems. 
B) pool supplies and equipment. 
C) cleaning equipment. 
D) none of the above. 
A) pool cleaning systems. 
B) pool supplies and equipment. 
C) cleaning equipment. 
D) none of the above.

Question 9

An agreement among competitors for elimination of bidding is a violation of federal antitrust laws.

Accepted Answer

A) True 
 B)False

Question 10

Snow-Man manufactures a cotton candy machine.It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy.The cotton candy machine is:

Accepted Answer

A) the tying product. 
B) the tied product. 
C) neither of the above - it is not a tying arrangement 
D) none of the above 
A) the tying product. 
B) the tied product. 
C) neither of the above - it is not a tying arrangement 
D) none of the above

Question 11

What is it called when officers of competing companies serve on each others' boards of directors?

Accepted Answer

A) Intralocking directorates 
B) Interlocking directorates 
C) Cross-locking directorates 
D) Diagonal directorates 
A) Intralocking directorates 
B) Interlocking directorates 
C) Cross-locking directorates 
D) Diagonal directorates

Question 12

There is hardly any cross-elasticity in the gasoline market.

Accepted Answer

A) True 
 B)False

Question 13

Exhaust,Inc.has the exclusive contract with the state of California for building,maintaining,and operating the state's vehicle emission testing centers.Auto Emissions,Inc.has announced it will submit a bid on the upcoming renewal.Exhaust,Inc.has begun lobbying state legislators to pass a bill allowing only in-state firms to be awarded the exclusive emissions contract.Exhaust is a California corporation and Auto Emissions is a New York corporation.Exhaust's conduct is:

Accepted Answer

A) an intentional act designed to create a monopoly and violates the Sherman Act. 
B) a boycott and a violation of the Sherman Act. 
C) an attempt at price fixing and a violation of the Sherman Act. 
D) protected under the Noerr-Pennington doctrine. 
A) an intentional act designed to create a monopoly and violates the Sherman Act. 
B) a boycott and a violation of the Sherman Act. 
C) an attempt at price fixing and a violation of the Sherman Act. 
D) protected under the Noerr-Pennington doctrine.

Question 14

Phillip Esten operates a mail store in which he offers various services such as packaging items for shipment,delivering items to overnight services,and a fax machine.Esten has been charging $2.00 per page for the fax service,but a new store has opened in a nearby shopping center that is charging $1.00 per page.Esten lowers his price to $.50 per page,knowing this charge will not always cover his cost.Esten's actions:

Accepted Answer

A) constitute predatory pricing and are a violation of the Robinson-Patman Act. 
B) constitute meeting the competition. 
C) constitute resale price maintenance violations. 
D) none of the above 
A) constitute predatory pricing and are a violation of the Robinson-Patman Act. 
B) constitute meeting the competition. 
C) constitute resale price maintenance violations. 
D) none of the above

Question 15

Limitations on bidding are permitted in professional bids such as in architecture and service contracts.

Accepted Answer

A) True 
 B)False

Question 16

Competition among Colgate,Crest,and Aim toothpastes is:

Accepted Answer

A) intrabrand competition. 
B) interbrand competition. 
C) controllable through resale price maintenance. 
D) none of the above 
A) intrabrand competition. 
B) interbrand competition. 
C) controllable through resale price maintenance. 
D) none of the above

Question 17

Greg Rafft,president of the Tricounty Brokerage Association,addressed the members at a luncheon meeting.He suggested that the association purchase two of the area's top three title insurance firms.Are there any antitrust problems with such an acquisition?

Accepted Answer

Having brokers own s

Question 18

Explain why the U.S.Supreme Court now applies a rule of reason standard to manufacturers who will no longer sell to retailers who offer deep discounts on the manufacturers' products.

Accepted Answer

The court held that enforcing suggested

Question 19

Fair trade contracts:

Accepted Answer

A) were eliminated in 1975. 
B) have been permitted in nearly one-half of the states. 
C) relate to issues surrounding price discrimination. 
D) none of the above 
A) were eliminated in 1975. 
B) have been permitted in nearly one-half of the states. 
C) relate to issues surrounding price discrimination. 
D) none of the above

Question 20

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry,"the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.The result is that 93 percent of all new pools have the system,and 94 percent of all pool owners buying replacement systems choose Pool Line.Pool Line's competitors have brought suit charging Pool Line with monopolization of the pool cleaning market.Pool Line:

Accepted Answer

A) probably has a monopoly per se because of the 90 percent+ market share figures. 
B) probably has a valid defense of superior skill, foresight, and industry. 
C) will owe treble damages to the competitors. 
D) none of the above 
A) probably has a monopoly per se because of the 90 percent+ market share figures. 
B) probably has a valid defense of superior skill, foresight, and industry. 
C) will owe treble damages to the competitors. 
D) none of the above

Maximum price requirements:

Which of the following $\underline{\text{not}}$ a per se violation of the antitrust laws?

Predatory pricing below cost with monopoly poweris illegal.

The Antitrust Improvements Act gave the Justice Department broader investigative authority.

Which of the following would $\underline{\text{not}}$ be price fixing?

The judicial approach to antitrust cases is one of weighing benefits to competition.

Fair trade contracts:

An agreement among competitors for elimination of bidding is a violation of federal antitrust laws.

Snow-Man manufactures a cotton candy machine.It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy.The cotton candy machine is:

What is it called when officers of competing companies serve on each others' boards of directors?

There is hardly any cross-elasticity in the gasoline market.

Limitations on bidding are permitted in professional bids such as in architecture and service contracts.

Competition among Colgate,Crest,and Aim toothpastes is:

Greg Rafft,president of the Tricounty Brokerage Association,addressed the members at a luncheon meeting.He suggested that the association purchase two of the area's top three title insurance firms.Are there any antitrust problems with such an acquisition?

Explain why the U.S.Supreme Court now applies a rule of reason standard to manufacturers who will no longer sell to retailers who offer deep discounts on the manufacturers' products.

Fair trade contracts:

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

Maximum price requirements:

Which of the following not‾\underline{\text{not}}not​ a per se violation of the antitrust laws?

Predatory pricing below cost with monopoly poweris illegal.

The Antitrust Improvements Act gave the Justice Department broader investigative authority.

Which of the following would not‾\underline{\text{not}}not​ be price fixing?

The judicial approach to antitrust cases is one of weighing benefits to competition.

Fair trade contracts:

An agreement among competitors for elimination of bidding is a violation of federal antitrust laws.

Snow-Man manufactures a cotton candy machine.It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy.The cotton candy machine is:

What is it called when officers of competing companies serve on each others' boards of directors?

There is hardly any cross-elasticity in the gasoline market.

Limitations on bidding are permitted in professional bids such as in architecture and service contracts.

Competition among Colgate,Crest,and Aim toothpastes is:

Greg Rafft,president of the Tricounty Brokerage Association,addressed the members at a luncheon meeting.He suggested that the association purchase two of the area's top three title insurance firms.Are there any antitrust problems with such an acquisition?

Explain why the U.S.Supreme Court now applies a rule of reason standard to manufacturers who will no longer sell to retailers who offer deep discounts on the manufacturers' products.

Fair trade contracts:

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

Which of the following $\underline{\text{not}}$ a per se violation of the antitrust laws?

Which of the following would $\underline{\text{not}}$ be price fixing?