Exam 20: Antitrust Law

In FTC v. Procter and Gamble, the Supreme Court held that Procter and Gamble could not merge with Clorox because even though the firms did not compete currently, they could compete in the future.

In general, vertical price-fixing arrangements are intended to:

When a seller will sell a product only on the condition that the buyer also purchase a different product is a tie-in sale.

Unpopularity of large businesses helped lead to passage of the ____ in 1890.

In Leegin Creative Leather Products v. PSKS, a maker of leather goods would not sell to stores that would not follow its pricing policy (resale price maintenance). The Supreme Court held that:

When a group of competitors conspire to prevent the carrying on of business or to harm a business it is a:

Selling a product at below cost in an effort to get a larger market share may violate the Robinson-Patman Act.

When firms at the same level of operation, such as auto parts dealers, get together for some illegal purpose, it is called:

A ____ occurs when the businesses involved operate at the same level of the market and generally in the same market.

The case of U.S. v. Baker Hughes, concerning a merger of hardrock hydraulic underground drilling rig makers, is an example of a merger that was allowed due to:

The recently enacted Anti-Monopoly Law in the People's Republic of China is:

In FTC v. Proctor & Gamble, the Supreme Court blocked the merger of Clorox and Proctor & Gamble, even though the companies did not make the same products. The court based its decision on which legal theory?

If a company imposing a tie-in has a market share of ____ in the market for the tying product, the use of tying will not be challenged.

Retailers in a city discovered that some products they bought for retail sale were being sold by distributors directly to the public, thereby reducing sales that could have gone to the retailers. The retailers got together and agreed not to buy any goods from distributors who sold directly to the public. This agreement is:

Which of the following conditions must be met for the Supreme Court to impose a per se rule of illegality on a tie-in case:

In the Brooke Group case the Supreme Court held that firms should enforce the Robinson-Patman act by suing competitors who slash prices too low.

Under the Robinson-Patman Act, a producer may not be able to charge one retailer a lower price than it charges another retailer just because the first retailer buys more merchandise. Volume discounts can be a violation of the Robinson-Patman because, according to the law:

Under the failing firm defense, a strong firm in an industry will be allowed to merge with another firm in the same industry if that firm was about to go bankrupt.

Ayau Distributors, which has stores in Ohio and Michigan, sells bedroom furniture for very low prices, but requires that buyers to also purchase a washing machine at a rather high price. This requirement probably is:

A ____ means that the court looks at the facts surrounding business practice before deciding whether it helps or hurts competition.