Exam 20: Antitrust Law

Illegal horizontal price fixing:

The Clayton Act was passed to:

Fact Pattern 20-1 MicroManage is the fastest growing home-software producer in the country. In 2000, it sold 6% of all home software in the U.S., but in 2011, it sold 55% of all home software. A recent issue of Computer Universe said that MicroManage was "the most dominant and aggressive of all home-software developers." Home software is a small part of the entire software industry. In 2011, MicroManage proposed a merger with Game Master, its main rival. Game Master was responsible for 10% of all home-software sales in 2010. MicroManage's president says that the combination of the firms will allow MicroManage to lower costs and pass the savings on to its customers. The Department of Justice filed suit to stop this merger, claiming the combination would give monopoly power to the merged firm. Justice insists that consumers would lose in the end. -Refer to Fact Pattern 20-1. The proposed merger has a greater chance of being approved if MicroManage can show that:

The antitrust laws may be enforced by:

Violations of Sections 1 and 2 of the Sherman Act by a corporation can result in:

Under the Hart-Scott-Rodino Antitrust Improvement Act, the FTC or the Justice Department may block a planned merger until the firms agree to certain conditions.

A tie-in sale is probably per se illegal if the seller has market power in the tying product, the tied and tying products are separate, and there is evidence of substantial adverse effect in the tied-product market.

In FTC v. Indiana Federation of Dentists, the Supreme Court held that First Amendment freedom of speech allows the Federation to recommend to dentists that they not submit patient records to insurance companies.

The first antitrust statute enacted by Congress (in 1890) was:

Among the groups that have traditionally favored resale price maintenance arrangements are:

China's Anti-Monopoly law was used to restrict InBev ownership share of the beer market in China after InBev merged with Anheuser-Busch.

Which law holds "unfair methods of competition" to be illegal?

Under the ____, lobbying to influence a legislature is not illegal, even if the purpose is anticompetitive.

Under the Hart-Scott-Rodino Antitrust Improvement Act, the government may not block proposed mergers of firms; the mergers must be contested in court later.

When two firms merge, they must notify the Antitrust Division of Justice or the FTC of their plan to merge under the:

In FTC v. Indiana Federation of Dentists, a dentists' organization required its members to withhold x-rays from insurance companies. The Supreme Court held this rule:

In FTC v. Indiana Federation of Dentists, a dentists' organization required its members to withhold x-rays from insurance companies. The Supreme Court held this rule:

A company that performs more than one function internally, (e.g. manufacturing and distributing) is subject to antitrust violations if the internal operations are a vertical arrangement.

Vertical restraints of trade concern contracts among buyers and sellers at different stages of business operations.

Discriminating in price between different purchasers of the same goods, when the effect is to injure competition, was made: