Question 1

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

Question 2

A restraint of trade may be classified as either horizontal or vertical.

Accepted Answer

A) True 
 B)False

Question 3

The definition of price-fixing includes agreements that may, among other things:

Accepted Answer

A)  depress prices. 
B)  stabilize prices. 
C)  raise prices. 
D)  All of these. 
A)  depress prices. 
B)  stabilize prices. 
C)  raise prices. 
D)  All of these.

Question 4

Section 1 of the Sherman Act does not prohibit concerted action.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

It is per se illegal under the Sherman Act for sellers to agree to a maximum price, but not a minimum price.

Accepted Answer

A) True 
 B)False

Question 8

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Accepted Answer

A)  unfair conduct or abuse of power. 
B)  concerted action. 
C)  competitive behavior. 
D)  economic advantage. 
A)  unfair conduct or abuse of power. 
B)  concerted action. 
C)  competitive behavior. 
D)  economic advantage.

Question 9

The Federal Trade Commission may issue a cease and desist order having the effect of an injunction.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

In an attempt to limit the power of large purchasers, Congress amended Section 2 of the Clayton Act in 1936 by adopting the:

Accepted Answer

A)  Sherman Act. 
B)  Federal Trade Commission Act. 
C)  Robinson-Patman Act. 
D)  All of these. 
A)  Sherman Act. 
B)  Federal Trade Commission Act. 
C)  Robinson-Patman Act. 
D)  All of these.

Question 12

In the case of Eastman Kodak Co. v. Image Technical Services, Inc. the U.S. Supreme Court identified the exact conduct, beyond mere possession of monopoly power, which violates Section 2 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  sole proprietorship. 
B)  tenancy in common. 
C)  joint venture. 
D)  competitor. 
A)  sole proprietorship. 
B)  tenancy in common. 
C)  joint venture. 
D)  competitor.

Question 14

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

Accepted Answer

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

Question 15

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 16

The manufacturer of Rubberware agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus. 50 per bowl. This is:

Accepted Answer

A)  horizontal price fixing. 
B)  vertical price fixing. 
C)  vertical market allocation. 
D)  a group boycott. 
A)  horizontal price fixing. 
B)  vertical price fixing. 
C)  vertical market allocation. 
D)  a group boycott.

Question 17

The National Cooperative Research Act provides that:

Accepted Answer

A)  joint ventures in the research and development of new technology are to be judged under the rule of reason test. 
B)  treble damages apply to all joint ventures formed in violation of the antitrust laws. 
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)  joint ventures in the research and development of new technology are to be judged under the rule of reason test. 
B)  treble damages apply to all joint ventures formed in violation of the antitrust laws. 
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 18

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

Accepted Answer

A) True 
 B)False

Question 19

The 2010 Horizontal Merger Guidelines:

Accepted Answer

A)  were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B)  require a mechanical application; in order to reduce the previously used analytic framework, which was far too subjective and uncertain. 
C)  rejects use of the Herfindahl-Hirschman Index. 
D)  clarify that merger analysis does not use a single methodology. 
A)  were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B)  require a mechanical application; in order to reduce the previously used analytic framework, which was far too subjective and uncertain. 
C)  rejects use of the Herfindahl-Hirschman Index. 
D)  clarify that merger analysis does not use a single methodology.

Question 20

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

Accepted Answer

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

Exam 42: Antitrust

The National Cooperative Research Act:

A restraint of trade may be classified as either horizontal or vertical.

The definition of price-fixing includes agreements that may, among other things:

Section 1 of the Sherman Act does not prohibit concerted action.

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

It is per se illegal under the Sherman Act for sellers to agree to a maximum price, but not a minimum price.

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

The Federal Trade Commission may issue a cease and desist order having the effect of an injunction.

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

In an attempt to limit the power of large purchasers, Congress amended Section 2 of the Clayton Act in 1936 by adopting the:

In the case of Eastman Kodak Co. v. Image Technical Services, Inc. the U.S. Supreme Court identified the exact conduct, beyond mere possession of monopoly power, which violates Section 2 of the Sherman Act.

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

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

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

The manufacturer of Rubberware agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus. 50 per bowl. This is:

The National Cooperative Research Act provides that:

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

The 2010 Horizontal Merger Guidelines:

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

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