Question 1

Meeting the competition is a defense to price discrimination.

Accepted Answer

A) True 
 B)False

Question 2

Fair trade contracts are:

Accepted Answer

A) valid. 
B) permitted under state laws. 
C) an issue related to resale price maintenance. 
D) none of the above 
A) valid. 
B) permitted under state laws. 
C) an issue related to resale price maintenance. 
D) none of the above

Question 3

The Celler-Kefauver Act regulates asset acquisitions.

Accepted Answer

A) True 
 B)False

Question 4

Resale price maintenance is a vertical restraint of trade.

Accepted Answer

A) True 
 B)False

Question 5

Hospitals in Arizona,New Mexico and Colorado are regulated on their emergency room fee schedules by a state hospital emergency room board.The board consists of representatives from all of the hospitals in the state.The board meets twice each year and establishes the prices for emergency room care.The states have assumed a regulatory oversight rule because of the need for universal access for emergency care.The prices charged for emergency room care in these 3 states exceed the average charges in California,Utah,Nevada,Idaho,Oregon and Washington.Patients who experience the higher charges in Arizona,New Mexico and Colorado are concerned about the higher rates.Discuss any legal rights and remedies they may have.

Accepted Answer

Even when prices are established by a re

Question 6

A group of local architects has met and decided that their bidding on public works projects has created a danger for the public because the bids come in so dangerously low that building safety is sacrificed.The action of the architects:

Accepted Answer

A) does not violate the Sherman Act because of the reason for their boycott. 
B) does not violate the Sherman Act because they offer services only and do not sell goods. 
C) violates the Sherman Act in spite of their motivation. 
D) none of the above 
A) does not violate the Sherman Act because of the reason for their boycott. 
B) does not violate the Sherman Act because they offer services only and do not sell goods. 
C) violates the Sherman Act in spite of their motivation. 
D) none of the above

Question 7

Yazaki,an auto parts manufacturer,made agreements with three competitors to decide in advance who would bid on contracts with auto manufacturers and what the price would be.The auto parts manufacturers then took turns winning various contracts.Which of the following statements is correct?

Accepted Answer

A) The companies engaged in resale price maintenance. 
B) The companies created a monopsony. 
C) The companies were involved in a tying arrangement. 
D) The companies were involved in divvying up the market and price-fixing. 
A) The companies engaged in resale price maintenance. 
B) The companies created a monopsony. 
C) The companies were involved in a tying arrangement. 
D) The companies were involved in divvying up the market and price-fixing.

Question 8

What is the maximum penalty a corporation can receive for a violation of the Sherman Act?

Accepted Answer

A) $350,000 
B) three years' imprisonment 
C) $10 million 
D) both a and b 
A) $350,000 
B) three years' imprisonment 
C) $10 million 
D) both a and b

Question 9

In Weyerhaeuser v.Ross-Simmons,Weyerhaeuser was found liable for:

Accepted Answer

A) predatory bidding. 
B) predatory pricing. 
C) nothing. 
D) monopsony violations. 
A) predatory bidding. 
B) predatory pricing. 
C) nothing. 
D) monopsony violations.

Question 10

There is no price discrimination when lower prices are charged for generic label cans of the same product.

Accepted Answer

A) True 
 B)False

Question 11

An agreement among competitors to control the supply of their products to the market violates the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 12

The eventual result in the U.S.v.Microsoft case was:

Accepted Answer

A) Bill Gates was sentenced to one year in prison for violations of the Sherman Act. 
B) The court concluded there were no violations of the Sherman Act. 
C) The court concluded that Microsoft violated the Sherman Act. 
D) The court concluded that Microsoft did not possess monopoly power. 
E) none of the above 
A) Bill Gates was sentenced to one year in prison for violations of the Sherman Act. 
B) The court concluded there were no violations of the Sherman Act. 
C) The court concluded that Microsoft violated the Sherman Act. 
D) The court concluded that Microsoft did not possess monopoly power. 
E) none of the above

Question 13

Territorial restrictions are:

Accepted Answer

A) illegal per se. 
B) questioned when there is no interbrand competition. 
C) the same as tying sales. 
D) none of the above 
A) illegal per se. 
B) questioned when there is no interbrand competition. 
C) the same as tying sales. 
D) none of the above

Question 14

Resale price maintenance is:

Accepted Answer

A) arule of reasonviolation. 
B) an attempt by a retailer to control prices. 
C) regulated by the Clayton Act. 
D) all of the above 
A) arule of reasonviolation. 
B) an attempt by a retailer to control prices. 
C) regulated by the Clayton Act. 
D) all of the above

Question 15

The Robinson-Patman Act deals with price discrimination.

Accepted Answer

A) True 
 B)False

Question 16

A monopsony is the same thing as a monopoly.

Accepted Answer

A) True 
 B)False

Question 17

A boycott against subcontractors who are cheaper because of safety concerns is still an illegal group boycott.

Accepted Answer

A) True 
 B)False

Question 18

The Sherman Act imposes fines and imprisonment for violations.

Accepted Answer

A) True 
 B)False

Question 19

Coca-Cola,Inc.and PepsiCo,Inc.have only one distributor each in the Phoenix area.The Phoenix market is an intensely competitive soft drink market with prices being among the lowest in the nation.A local restaurateur has requested a dealership from PepsiCo and has been denied.He claims an antitrust violation.Which of the following statements is true?

Accepted Answer

A) The denial of the distributorship to someone who can afford it is anticompetitive and is a per se violation. 
B) The denial is justifiable given the level of interbrand competition. 
C) The denial is an example of resale price maintenance. 
D) none of the above 
A) The denial of the distributorship to someone who can afford it is anticompetitive and is a per se violation. 
B) The denial is justifiable given the level of interbrand competition. 
C) The denial is an example of resale price maintenance. 
D) none of the above

Question 20

Which of the following is not an antitrust violation so long as there is sufficient interbrand competition?

Accepted Answer

A) resale price maintenance 
B) sole outlets and exclusive distributorships 
C) price discrimination 
D) all of the above 
A) resale price maintenance 
B) sole outlets and exclusive distributorships 
C) price discrimination 
D) all of the above

Meeting the competition is a defense to price discrimination.

Fair trade contracts are:

The Celler-Kefauver Act regulates asset acquisitions.

Resale price maintenance is a vertical restraint of trade.

A group of local architects has met and decided that their bidding on public works projects has created a danger for the public because the bids come in so dangerously low that building safety is sacrificed.The action of the architects:

Yazaki,an auto parts manufacturer,made agreements with three competitors to decide in advance who would bid on contracts with auto manufacturers and what the price would be.The auto parts manufacturers then took turns winning various contracts.Which of the following statements is correct?

What is the maximum penalty a corporation can receive for a violation of the Sherman Act?

In Weyerhaeuser v.Ross-Simmons,Weyerhaeuser was found liable for:

There is no price discrimination when lower prices are charged for generic label cans of the same product.

An agreement among competitors to control the supply of their products to the market violates the Sherman Act.

The eventual result in the U.S.v.Microsoft case was:

Territorial restrictions are:

Resale price maintenance is:

The Robinson-Patman Act deals with price discrimination.

A monopsony is the same thing as a monopoly.

A boycott against subcontractors who are cheaper because of safety concerns is still an illegal group boycott.

The Sherman Act imposes fines and imprisonment for violations.

Which of the following is not an antitrust violation so long as there is sufficient interbrand competition?

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

Meeting the competition is a defense to price discrimination.

Fair trade contracts are:

The Celler-Kefauver Act regulates asset acquisitions.

Resale price maintenance is a vertical restraint of trade.

A group of local architects has met and decided that their bidding on public works projects has created a danger for the public because the bids come in so dangerously low that building safety is sacrificed.The action of the architects:

Yazaki,an auto parts manufacturer,made agreements with three competitors to decide in advance who would bid on contracts with auto manufacturers and what the price would be.The auto parts manufacturers then took turns winning various contracts.Which of the following statements is correct?

What is the maximum penalty a corporation can receive for a violation of the Sherman Act?

In Weyerhaeuser v.Ross-Simmons,Weyerhaeuser was found liable for:

There is no price discrimination when lower prices are charged for generic label cans of the same product.

An agreement among competitors to control the supply of their products to the market violates the Sherman Act.

The eventual result in the U.S.v.Microsoft case was:

Territorial restrictions are:

Resale price maintenance is:

The Robinson-Patman Act deals with price discrimination.

A monopsony is the same thing as a monopoly.

A boycott against subcontractors who are cheaper because of safety concerns is still an illegal group boycott.

The Sherman Act imposes fines and imprisonment for violations.

Which of the following is not an antitrust violation so long as there is sufficient interbrand competition?

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