Question 1

All price discrimination is illegal under the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False  False

Question 2

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.

Accepted Answer

A) True 
 B)False  True

Question 3

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Accepted Answer

A) True 
 B)False  True

Question 4

In enforcing the Sherman Act, the DOJ examines conduct by foreign companies  to determine whether it would violate the law if it occurred within borders of the United States.

Accepted Answer

A) True 
 B)False

Question 5

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Accepted Answer

A) True 
 B)False

Question 6

Under Section 1 of the Sherman Act, which of the following is illegal per se ?

Accepted Answer

A)  Vertical market allocations. 
B)  Monopolies 
C)  Horizontal market allocations. 
D)  Vertical price restraints. 
A)  Vertical market allocations. 
B)  Monopolies 
C)  Horizontal market allocations. 
D)  Vertical price restraints.

Question 7

Elko, Inc.and Fuldan, Inc.closely monitor each other's actions regarding the sale of consumer electronic products.Each corporation tries to match the other's product designs and specifications, prices, and advertising strategies.As a result, the two corporations have similar products, prices, and profits.Is this a violation of the antitrust laws?

Accepted Answer

This may very well be a violation of Sec

Question 8

Group boycotts are not prohibited by the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is correct regarding the Clayton Act?

Accepted Answer

A)  It deals with price discrimination, tying contracts, and mergers. 
B)  It repealed the Robinson-Patman Act. 
C)  It included labor organizations in its coverage. 
D)  It added criminal sanctions to the Sherman Act. 
A)  It deals with price discrimination, tying contracts, and mergers. 
B)  It repealed the Robinson-Patman Act. 
C)  It included labor organizations in its coverage. 
D)  It added criminal sanctions to the Sherman Act.

Question 10

Failure to comply with Section 1, but not Section 2, of the Sherman Act is a criminal violation.

Accepted Answer

A) True 
 B)False

Question 11

Masson Supply sells hinges to retail outlets for $1.20.If Rorsch Ltd.approaches Strunk Hardware, one of Masson's customers, and offers to sell a comparable hinge for $1.10:

Accepted Answer

A)  Masson may not lower its price to Strunk to $1.10 unless it lowers its price to its other customers or it will violate the Robinson-Patman Act. 
B)  Masson may lower its price to Strunk to $1.05 in order to keep Strunk's business, even if Masson does not lower the price to its other customers, without violating the Robinson-Patman Act. 
C)  Masson may lower its price to Strunk without also lowering its price to Masson's other customers in order to allow Strunk to meet a lower price Strunk's competitor charges when selling Rorsch's hinges. 
D)  Masson may, without violating the Robinson-Patman Act, lower its price to Strunk to $1.10, and Masson need not lower its price to its other customers. 
A)  Masson may not lower its price to Strunk to $1.10 unless it lowers its price to its other customers or it will violate the Robinson-Patman Act. 
B)  Masson may lower its price to Strunk to $1.05 in order to keep Strunk's business, even if Masson does not lower the price to its other customers, without violating the Robinson-Patman Act. 
C)  Masson may lower its price to Strunk without also lowering its price to Masson's other customers in order to allow Strunk to meet a lower price Strunk's competitor charges when selling Rorsch's hinges. 
D)  Masson may, without violating the Robinson-Patman Act, lower its price to Strunk to $1.10, and Masson need not lower its price to its other customers.

Question 12

A "Vertical Restraint Index" is a measure of relative market share.

Accepted Answer

A) True 
 B)False

Question 13

The Justice Department has expanded its enforcement policy of the Sherman Act to cover foreign companies' conduct that harms U.S.exports.

Accepted Answer

A) True 
 B)False

Question 14

The National Cooperative Research Act provides that:

Accepted Answer

A)  treble damages apply to all joint ventures formed in violation of the antitrust laws. 
B)  joint ventures in the research and development of new technology are to be judged under the rule of reason test. 
C)  joint venture participants must under all circumstances report their intent to the Justice Department. 
D)  joint ventures formed to divide markets and fix prices are not illegal. 
A)  treble damages apply to all joint ventures formed in violation of the antitrust laws. 
B)  joint ventures in the research and development of new technology are to be judged under the rule of reason test. 
C)  joint venture participants must under all circumstances report their intent to the Justice Department. 
D)  joint ventures formed to divide markets and fix prices are not illegal.

Question 15

The National Cooperative Research Act:

Accepted Answer

A)  prohibits using the rule of reason test in judging joint ventures in research and development of new technology. 
B)  now requires treble damages if joint ventures are formed in violation of Section 1 of the Sherman Act. 
C)  is designed to clear up uncertainty about the legality of joint ventures. 
D)  All of these. 
A)  prohibits using the rule of reason test in judging joint ventures in research and development of new technology. 
B)  now requires treble damages if joint ventures are formed in violation of Section 1 of the Sherman Act. 
C)  is designed to clear up uncertainty about the legality of joint ventures. 
D)  All of these.

Question 16

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms.This recommendation is probably:

Accepted Answer

A)  not a violation of the Sherman Act, because it has been made by a professional association. 
B)  subject to the rule of reason. 
C)  not a violation of the Sherman Act, because a fee is different from a price. 
D)  a per se price fixing violation of the Sherman Act. 
A)  not a violation of the Sherman Act, because it has been made by a professional association. 
B)  subject to the rule of reason. 
C)  not a violation of the Sherman Act, because a fee is different from a price. 
D)  a per se price fixing violation of the Sherman Act.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Under the 2004 amendments, corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Accepted Answer

A) True 
 B)False

Question 19

The rule of reason test, under the Sherman Antitrust Act:

Accepted Answer

A)  considers the defendant's need for the financial gain from the restraint of trade. 
B)  considers the makeup of a relevant industry. 
C)  does not consider competitor's ability to respond to the challenged practice of restraint of trade. 
D)  does not consider the defendant's position in that industry. 
A)  considers the defendant's need for the financial gain from the restraint of trade. 
B)  considers the makeup of a relevant industry. 
C)  does not consider competitor's ability to respond to the challenged practice of restraint of trade. 
D)  does not consider the defendant's position in that industry.

Question 20

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

Accepted Answer

A)  this is per se illegal. 
B)  this will be tested under the rule of reason. 
C)  there is a tying arrangement. 
D)  there is no violation. 
A)  this is per se illegal. 
B)  this will be tested under the rule of reason. 
C)  there is a tying arrangement. 
D)  there is no violation.

Exam 42: Antitrust

All price discrimination is illegal under the Robinson-Patman Act.

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.

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

In enforcing the Sherman Act, the DOJ examines conduct by foreign companies to determine whether it would violate the law if it occurred within borders of the United States.

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Under Section 1 of the Sherman Act, which of the following is illegal per se ?

Group boycotts are not prohibited by the Sherman Act.

Which of the following is correct regarding the Clayton Act?

Failure to comply with Section 1, but not Section 2, of the Sherman Act is a criminal violation.

Masson Supply sells hinges to retail outlets for $1.20.If Rorsch Ltd.approaches Strunk Hardware, one of Masson's customers, and offers to sell a comparable hinge for $1.10:

A "Vertical Restraint Index" is a measure of relative market share.

The Justice Department has expanded its enforcement policy of the Sherman Act to cover foreign companies' conduct that harms U.S.exports.

The National Cooperative Research Act provides that:

The National Cooperative Research Act:

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms.This recommendation is probably:

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

Under the 2004 amendments, corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

The rule of reason test, under the Sherman Antitrust Act:

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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