Exam 42: Antitrust

All tying arrangements are per se illegal.

The National Cooperative Research Act was passed to facilitate the use of joint ventures for joint research and development.

The Federal Trade Commission was created by the Sherman Act and its powers are limited to preventing unfair methods of competition as set forth in the Sherman Act.

Group boycotts are not prohibited by the Sherman Act.

With tying arrangements, the courts may establish a seller's economic power by showing that:

To find a violation of Section 2 of the Sherman Act, if sufficient monopoly power has been proved, the law must then show that the firm has engaged in unfair conduct .

When the per se approach is inappropriate in a Section 1 Sherman Act case but the challenged conduct has obvious anticompetitive effects, courts may use an intermediate test which is a "quick look" rule of reason analysis.

Monopoly power is tested by determining how big the corporation is in terms of total assets.

What are the major functions of the Federal Trade Commission (FTC) and what power does the FTC have?

Section 1 of the Sherman Act outlaws monopolies and attempts to monopolize.

Discuss the validity and effect of each of the following: a. Two manufacturers of the same product decide to allocate territories with one taking the southern states. b. A labor union encourages its members and all consumers to boycott a product manufactured by a company that refuses to honor a union contract. c. Betty's Bargain Department Store sells its products for 10% under the suggested retail price. One manufacturer tells the store it will not supply wholesale goods to it unless it charges at least the suggested retail price.

The courts have interpreted the Sherman Act as prohibiting contracts that unreasonably restrain trade.

The Clayton Act deals with which of the following situations?

The Robinson-Patman Act adds to the Clayton Act merger provisions.

A form of business association organized to carry out a particular business enterprise is a:

Failure to comply with Section 1 or 2 of the Sherman Act:

An agreement between a manufacturer and a wholesaler is horizontal.

Which of the following is true in relation to market share and monopoly power?

Mitch Matthews at M&M Furniture Co. had an argument with the Selphi Sofa representative, so he decided that M&M  would boycott Selphi . Under the Sherman Act, this is:

Creativ-Design, Inc. has 68% of the market share in a particular geographic region for one of its products. Does Creativ-Design have a monopoly? Explain.