Exam 5: Government Regulation of Competition and Prices

Criminal penalties are possible under the Sherman Act.

The Clayton Act prohibits price discrimination between different buyers of like commodities when the effect may be to substantially lessen competition.

Under the Robinson-Patman Act, wholesalers may give new distributors free advertising and other services to help them compete with other distributors who have been doing business for a number of years and have become firmly established.

__________ power relates to a firm's ability to control price and exclude competitors.

Section __________ of the Sherman Act applies to agreements, conduct, or conspiracies to restrain trade, which can consist of price-fixing, typing, and monopolization.

Requiring buyers to purchase one product in order to get another is acceptable practice and not a violation of the Sherman Act.

Boycotts are always illegal, even when done with good intentions.

The Robinson-Patman Act guarantees a seller the right to refuse to deal with anyone for any reason or purpose.