Exam 20: Antitrust Law

The power-buyer defense to opposition to a merger can be used when:

Acme produces hamburger at a processing plant. Stores send trucks to pick up the meat. Prince, a large chain of grocery stores, tells Acme it will buy its hamburger if Acme will charge it 5% less than what the grocery stores pay. Acme sells the meat to Prince for less. What violation of the antitrust law may have occurred?

Tie-in arrangements are allowed under which of the following conditions:

According to the Department of Justice Vertical Restraint Guidelines tie-in sales will be per se illegal if the following conditions exist except for which one:

All antitrust suits are brought by the federal government.

A group conspiracy that prevents the carrying on of business is called a boycott.

In Eastman Kodak Co. v. Image Technical Services, Inc., the Supreme Court upheld a business arrangement devised by Kodak that required independent service organizations to buy all replacement parts from Kodak.

A horizontal merger occurs when:

In Leegin Creative Leather Products v. PSKS, the Supreme Court held that minimum vertical price fixing controls (resale price maintenance) would per se legal.

A(n) ____ means that that certain business agreements or activities will automatically be held to be illegal if found to exist.

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court held the practice was:

Coca-Cola's limitation on where a bottler is permitted to sell and deliver the product is an example of:

The Federal Trade Commission Act was enacted by Congress in:

In Leegin Creative Leather Products v. PSKS, the Supreme Court held that minimum vertical price fixing controls (resale price maintenance) would be viewed with a rule of reason.

Generally, it is legal to share price information, so long as it is done openly.

Which of the following may be at least partly exempt from antitrust laws?

The Robinson-Patman Act:

In U.S. v. El Paso Natural Gas, two gas pipeline companies in physically distinct markets, and not in competition, were not allowed to merge because it was possible that in the future they could compete with one another.

You own a hair salon in a college town. Because there is competition for customers, the salons have been in a price war. You invite all salon owners to your home. They decide that the price war is hurting everyone and agree to charge standard rates for hairstyling. This arrangement is:

Which of the following groups could promote a boycott: