Question 1

A monopsony is illegal per se.

Accepted Answer

A) True 
 B)False

Question 2

Generally,joint ventures among competitors in international business are per se violations of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 3

A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels to discuss their markets and kept notes with phrases such as "Must act together with the Korean makers in order to reap success," and "Extremely confidential.Must not distribute." The result was that the LCD screen producers were able to command high prices for their products,prices that were non-negotiable.Which of the following statements is correct about their conduct?​

Accepted Answer

A) ​The manufacturers had engaged in a per se violation of antitrust laws. 
B) ​The manufacturers violated the Sherman Act. 
C) The manufacturers violated the Clayton Act. 
D) both a and b 
E) all of the above 
A) ​The manufacturers had engaged in a per se violation of antitrust laws. 
B) ​The manufacturers violated the Sherman Act. 
C) The manufacturers violated the Clayton Act. 
D) both a and b 
E) all of the above

Question 4

Only Clayton Act violations carry treble damages.

Accepted Answer

A) True 
 B)False

Question 5

Sole outlets are not antitrust violations when there is interbrand competition.

Accepted Answer

A) True 
 B)False

Question 6

324 Liquor Corporation is a retail liquor and wine dealer.In New York,the wholesalers establish the prices for retail sales and the State Liquor Authority enforces those prices.324 was cited for violations when it sold a State Liquor Authority investigator a bottle of Chatham Gin for $9.45 (the price was to be $9.65)and a bottle of Smirnoff for $11.59 (the price was to be $11.89).At the hearing,324 contends that the statutory scheme for regulating prices violates the antitrust laws.Is 324 correct?

Accepted Answer

A state can regulate prices,but it is th

Question 7

Cross-elasticity of demand is:

Accepted Answer

A) the willingness to substitute other products. 
B) a factor in determining resale price maintenance. 
C) a factor in determining the geographic market. 
D) all of the above 
A) the willingness to substitute other products. 
B) a factor in determining resale price maintenance. 
C) a factor in determining the geographic market. 
D) all of the above

Question 8

Monopolization is a vertical restraint of trade.

Accepted Answer

A) True 
 B)False

Question 9

Georges Marciano Guess Company sells its clothes with tags on them with a price indicating "suggested retail price." Are there any antitrust violations with this practice?

Accepted Answer

No,unenfor

Question 10

Termination of a TV retailer's sales contract with a TV manufacturer by that manufacturer for selling the manufacturer's TVs at too-low prices is:

Accepted Answer

A) a per se violation of the Sherman Act. 
B) resale price maintenance subject to a rule of reason review. 
C) price fixing. 
D) none of the above 
A) a per se violation of the Sherman Act. 
B) resale price maintenance subject to a rule of reason review. 
C) price fixing. 
D) none of the above

Question 11

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.Snow-Man's requirement:

Accepted Answer

A) is an example of an exclusive dealing contract. 
B) is a tying arrangement. 
C) is a requirements contract. 
D) none of the above 
A) is an example of an exclusive dealing contract. 
B) is a tying arrangement. 
C) is a requirements contract. 
D) none of the above

Question 12

Sedres,Inc.is the manufacturer of the current best-selling TV video game system.Sedres will not sell parts for repair of the systems to anyone other than its authorized dealers.All Sedres authorized dealers are required to send used parts back to Sedres.Sedres will terminate an authorized dealer if it uses non-Sedres parts for repairs.Sedres' policies on dealers:

Accepted Answer

A) constitute violations of the Sherman Act. 
B) are simply valid quality control mechanisms. 
C) are valid since no one is barred from entry. 
D) would be violations only if there were no other TV video game manufacturers. 
A) constitute violations of the Sherman Act. 
B) are simply valid quality control mechanisms. 
C) are valid since no one is barred from entry. 
D) would be violations only if there were no other TV video game manufacturers.

Question 13

Colleges and universities around the country keep a common pool of information among them about National Merit Scholars and disclose in their pool information about tuition,scholarship packages,and financial aid.Is such a pool of information appropriate under federal antitrust laws?

Accepted Answer

The Justice Department recently entered

Question 14

Market power is:

Accepted Answer

A) represented by a relatively inelastic demand curve. 
B) defined by statute. 
C) the same as market share above 50 percent. 
D) all of the above 
A) represented by a relatively inelastic demand curve. 
B) defined by statute. 
C) the same as market share above 50 percent. 
D) all of the above

Question 15

Which of the following statutes was the first federal antitrust statute?

Accepted Answer

A) Clayton Act 
B) Sherman Act 
C) Federal Trade Commission Act 
D) none of the above 
A) Clayton Act 
B) Sherman Act 
C) Federal Trade Commission Act 
D) none of the above

Question 16

Several law firms in the Detroit area have met and agreed not to charge more than $200 for a simple will so that they can more effectively compete with the increasing number of legal clinics.The agreement for a price maximum is:

Accepted Answer

A) not an antitrust violation because the public benefits from maximum prices. 
B) not an antitrust violation because it is a service and not a sale of goods. 
C) price fixing and an antitrust violation. 
D) none of the above 
A) not an antitrust violation because the public benefits from maximum prices. 
B) not an antitrust violation because it is a service and not a sale of goods. 
C) price fixing and an antitrust violation. 
D) none of the above

Question 17

Which of the following is not required for an enforceable covenant not to compete?

Accepted Answer

A) sale of a business 
B) reasonable geographic scope 
C) reasonable time limits 
D) All of the above are required. 
A) sale of a business 
B) reasonable geographic scope 
C) reasonable time limits 
D) All of the above are required.

Question 18

Which of the following arrangements is subject to the rule of reason test?

Accepted Answer

A) sole outlets and exclusive distributorships 
B) resale price maintenance 
C) tying 
D) All of the above are under the rule of reason test. 
A) sole outlets and exclusive distributorships 
B) resale price maintenance 
C) tying 
D) All of the above are under the rule of reason test.

Question 19

In about 2003,day spas,chain whitening franchises,and other businesses began to offer teeth whitening.Dentists began complaining to State Boards of Dental Examiners and wanted to have non-dentist teeth whitening prohibited.The dentists said that they were concerned about public health and safety in having non-licensed individuals performing teeth whitening.The State Boards are made up mostly of dentists and generally one or two consumer representatives.In North Carolina,the Board issued an order that shut down the non-dentist teeth whitening businesses.Which of the following statements is correct?​

Accepted Answer

A) ​The dental board can take such action because the Noerr-Pennington doctrine protects them when the action is taken by a government body. 
B) ​The dental board's actions were anticompetitive. 
C) The health and safety argument is valid only if supported by evidence. 
D) both b and c 
A) ​The dental board can take such action because the Noerr-Pennington doctrine protects them when the action is taken by a government body. 
B) ​The dental board's actions were anticompetitive. 
C) The health and safety argument is valid only if supported by evidence. 
D) both b and c

Question 20

Zenith Radio and other American TV manufacturers brought suit against Japanese TV manufacturers for charging artificially low prices in the United States.Can the Japanese manufacturers be sued in the United States?

Accepted Answer

Yes,if they're doing

A monopsony is illegal per se.

Generally,joint ventures among competitors in international business are per se violations of the Sherman Act.

Only Clayton Act violations carry treble damages.

Sole outlets are not antitrust violations when there is interbrand competition.

Cross-elasticity of demand is:

Monopolization is a vertical restraint of trade.

Georges Marciano Guess Company sells its clothes with tags on them with a price indicating "suggested retail price." Are there any antitrust violations with this practice?

Termination of a TV retailer's sales contract with a TV manufacturer by that manufacturer for selling the manufacturer's TVs at too-low prices is:

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.Snow-Man's requirement:

Colleges and universities around the country keep a common pool of information among them about National Merit Scholars and disclose in their pool information about tuition,scholarship packages,and financial aid.Is such a pool of information appropriate under federal antitrust laws?

Market power is:

Which of the following statutes was the first federal antitrust statute?

Several law firms in the Detroit area have met and agreed not to charge more than $200 for a simple will so that they can more effectively compete with the increasing number of legal clinics.The agreement for a price maximum is:

Which of the following is not required for an enforceable covenant not to compete?

Which of the following arrangements is subject to the rule of reason test?

Zenith Radio and other American TV manufacturers brought suit against Japanese TV manufacturers for charging artificially low prices in the United States.Can the Japanese manufacturers be sued in the United States?

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

A monopsony is illegal per se.

Generally,joint ventures among competitors in international business are per se violations of the Sherman Act.

Only Clayton Act violations carry treble damages.

Sole outlets are not antitrust violations when there is interbrand competition.

Cross-elasticity of demand is:

Monopolization is a vertical restraint of trade.

Georges Marciano Guess Company sells its clothes with tags on them with a price indicating "suggested retail price." Are there any antitrust violations with this practice?

Termination of a TV retailer's sales contract with a TV manufacturer by that manufacturer for selling the manufacturer's TVs at too-low prices is:

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.Snow-Man's requirement:

Colleges and universities around the country keep a common pool of information among them about National Merit Scholars and disclose in their pool information about tuition,scholarship packages,and financial aid.Is such a pool of information appropriate under federal antitrust laws?

Market power is:

Which of the following statutes was the first federal antitrust statute?

Several law firms in the Detroit area have met and agreed not to charge more than $200 for a simple will so that they can more effectively compete with the increasing number of legal clinics.The agreement for a price maximum is:

Which of the following is not required for an enforceable covenant not to compete?

Which of the following arrangements is subject to the rule of reason test?

Zenith Radio and other American TV manufacturers brought suit against Japanese TV manufacturers for charging artificially low prices in the United States.Can the Japanese manufacturers be sued in the United States?

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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