Question 1

Trade arrangements governing the relationships in the different states of production, distribution and sale of the same product are:

Accepted Answer

A)  horizontal business arrangements 
B)  vertical business arrangements 
C)  real business arrangements 
D)  single product business arrangements 
E)  sideways business arrangements 
A)  horizontal business arrangements 
B)  vertical business arrangements 
C)  real business arrangements 
D)  single product business arrangements 
E)  sideways business arrangements

Question 2

A controversial aspect of the Robinson-Patman Act is that it:

Accepted Answer

A)  allows sellers to charge different prices for different buyers 
B)  tends to over-stimulate competition 
C)  discourages small retailers from being able to compete 
D)  denies sellers some benefits of vertical integration 
E)  all of the other choices 
A)  allows sellers to charge different prices for different buyers 
B)  tends to over-stimulate competition 
C)  discourages small retailers from being able to compete 
D)  denies sellers some benefits of vertical integration 
E)  all of the other choices

Question 3

The Department of the Commerce has published a series of merger guidelines that discuss factors considered in determining whether a merger is likely to be challenged.

Accepted Answer

A) True 
 B)False

Question 4

The sponsors of the Sherman Antitrust Act saw it as:

Accepted Answer

A)  a way to reduce concerns that some industries were dominated by a few firms 
B)  a way to maintain industry dominance by a few efficient firms in each industry 
C)  a way to increase tax revenue from big businesses 
D)  a way to lessen the tax burden on small businesses 
E)  a way to increase private investment in big business 
A)  a way to reduce concerns that some industries were dominated by a few firms 
B)  a way to maintain industry dominance by a few efficient firms in each industry 
C)  a way to increase tax revenue from big businesses 
D)  a way to lessen the tax burden on small businesses 
E)  a way to increase private investment in big business

Question 5

Charging different prices in different markets for the same goods is called:

Accepted Answer

A)  boycott pricing 
B)  vertical discrimination 
C)  price disparagement 
D)  boycotting 
E)  none of the other choices 
A)  boycott pricing 
B)  vertical discrimination 
C)  price disparagement 
D)  boycotting 
E)  none of the other choices

Question 6

In U.S. v. Baker Hughes, the power-buyer defense was used to show that the defendant illegally monopolized its market, and was subject to treble damages under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 7

A private party that wins treble damages for a violation of the Sherman Act will receive:

Accepted Answer

A)  twice their actual money damages 
B)  twice their actual money damages plus court costs and attorney fees 
C)  three times their actual money damages plus court costs and attorney fees 
D)  court fees and attorney fees 
E)  half their actual money damages plus court costs and attorney fees 
A)  twice their actual money damages 
B)  twice their actual money damages plus court costs and attorney fees 
C)  three times their actual money damages plus court costs and attorney fees 
D)  court fees and attorney fees 
E)  half their actual money damages plus court costs and attorney fees

Question 8

Under the merger guidelines a major reason to approve a merger is:

Accepted Answer

A)  the demonstration that the merger will increase profits 
B)  the demonstration that the merger will reduce profits 
C)  the demonstration that the merger will create jobs 
D)  the demonstration that the merger will enhance efficiency in the market 
E)  the demonstration that the merger will reduce market share 
A)  the demonstration that the merger will increase profits 
B)  the demonstration that the merger will reduce profits 
C)  the demonstration that the merger will create jobs 
D)  the demonstration that the merger will enhance efficiency in the market 
E)  the demonstration that the merger will reduce market share

Question 9

Volume discounts are specified by the Robinson-Patman Act as exempt from restrictions on price discrimination.

Accepted Answer

A) True 
 B)False

Question 10

The main issue in FTC v. Indiana Federation of Dentists was that of information sharing with the public about the price of dental services.

Accepted Answer

A) True 
 B)False

Question 11

The antitrust standards of the European Union and the U.S. are growing closer together.

Accepted Answer

A) True 
 B)False

Question 12

In State Oil Co. v. Khan, a gasoline distributor controlled the maximum gas sales markup that its gas station dealers could charge (maximum price fixing). The Supreme Court held that:

Accepted Answer

A)  all vertical price fixing subject to a rule of reason 
B)  vertical price fixing of maximum retail prices was illegal 
C)  when vertical price fixing lowers prices, it may be justified by rule of reason 
D)  vertical price fixing may cause dealers to be able to furnish more services in an anticompetitive manner 
E)  vertical price fixing may hurt the ability of sellers to compete 
A)  all vertical price fixing subject to a rule of reason 
B)  vertical price fixing of maximum retail prices was illegal 
C)  when vertical price fixing lowers prices, it may be justified by rule of reason 
D)  vertical price fixing may cause dealers to be able to furnish more services in an anticompetitive manner 
E)  vertical price fixing may hurt the ability of sellers to compete

Question 13

Certain "exclusive deals" are prohibited by the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements about the per se rule and the rule of reason antitrust doctrines is true?

Accepted Answer

A)  under rule of reason, only proof of an antitrust violation is needed for the courts to rule the firm violates antitrust laws 
B)  under per se, the court rules that the actions of the firm are not justified given the weight of the evidence 
C)  under rule of reason, the court consider the impact of a business practice to determine if it is harmful to competition 
D)  under per se, if precedent found a business action to be illegal it always remains illegal 
E)  none of the other choices 
A)  under rule of reason, only proof of an antitrust violation is needed for the courts to rule the firm violates antitrust laws 
B)  under per se, the court rules that the actions of the firm are not justified given the weight of the evidence 
C)  under rule of reason, the court consider the impact of a business practice to determine if it is harmful to competition 
D)  under per se, if precedent found a business action to be illegal it always remains illegal 
E)  none of the other choices

Question 15

The Sherman Act applies to trusts, not to corporations and other business forms.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  Clayton Act 
B)  Lanham Act 
C)  FTC Act 
D)  Norris-LaGuardia Act 
E)  none of the other choices 
A)  Clayton Act 
B)  Lanham Act 
C)  FTC Act 
D)  Norris-LaGuardia Act 
E)  none of the other choices

Question 17

Charging different prices in different markets for the same product may violate the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 18

The Clayton Act is intended to:

Accepted Answer

A)  stop a business practice early in use to prevent a firm becoming a monopoly 
B)  deal with established monopolies that were expanding their influence 
C)  increase the ability of firms to develop monopolies 
D)  force higher taxes on monopolies 
E)  limit fluctuations in the stock market caused by monopolistic practices 
A)  stop a business practice early in use to prevent a firm becoming a monopoly 
B)  deal with established monopolies that were expanding their influence 
C)  increase the ability of firms to develop monopolies 
D)  force higher taxes on monopolies 
E)  limit fluctuations in the stock market caused by monopolistic practices

Question 19

Which of the following is a provision of the Sherman Act:

Accepted Answer

A)  unfair methods of competition in or affecting commerce...are...unlawful 
B)  it shall be unlawful for any person engaged in commerce...to discriminate in prices between purchasers of commodities of like grade and quality 
C)  no corporation...shall acquire...another corporation...where...the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly 
D)  all of the other choices are parts of the Act 
E)  none of the other choices are parts of the Act 
A)  unfair methods of competition in or affecting commerce...are...unlawful 
B)  it shall be unlawful for any person engaged in commerce...to discriminate in prices between purchasers of commodities of like grade and quality 
C)  no corporation...shall acquire...another corporation...where...the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly 
D)  all of the other choices are parts of the Act 
E)  none of the other choices are parts of the Act

Question 20

When the impact of a merger of competitors on a geographic market is being considered, it:

Accepted Answer

A)  must be the national market for federal purposes 
B)  must be a market in at least two states for it to be in interstate commerce under the statutes 
C)  can be a market in a small area and still be challenged 
D)  can be any market in the U.S., but the impact on foreign markets is not to be considered 
E)  must simultaneously demonstrate harm on a product market 
A)  must be the national market for federal purposes 
B)  must be a market in at least two states for it to be in interstate commerce under the statutes 
C)  can be a market in a small area and still be challenged 
D)  can be any market in the U.S., but the impact on foreign markets is not to be considered 
E)  must simultaneously demonstrate harm on a product market

Exam 20: Antitrust Law

Trade arrangements governing the relationships in the different states of production, distribution and sale of the same product are:

A controversial aspect of the Robinson-Patman Act is that it:

The Department of the Commerce has published a series of merger guidelines that discuss factors considered in determining whether a merger is likely to be challenged.

The sponsors of the Sherman Antitrust Act saw it as:

Charging different prices in different markets for the same goods is called:

In U.S. v. Baker Hughes, the power-buyer defense was used to show that the defendant illegally monopolized its market, and was subject to treble damages under the Sherman Act.

A private party that wins treble damages for a violation of the Sherman Act will receive:

Under the merger guidelines a major reason to approve a merger is:

Volume discounts are specified by the Robinson-Patman Act as exempt from restrictions on price discrimination.

The main issue in FTC v. Indiana Federation of Dentists was that of information sharing with the public about the price of dental services.

The antitrust standards of the European Union and the U.S. are growing closer together.

In State Oil Co. v. Khan, a gasoline distributor controlled the maximum gas sales markup that its gas station dealers could charge (maximum price fixing). The Supreme Court held that:

Certain "exclusive deals" are prohibited by the Clayton Act.

Which of the following statements about the per se rule and the rule of reason antitrust doctrines is true?

The Sherman Act applies to trusts, not to corporations and other business forms.

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

Charging different prices in different markets for the same product may violate the Robinson-Patman Act.

The Clayton Act is intended to:

Which of the following is a provision of the Sherman Act:

When the impact of a merger of competitors on a geographic market is being considered, it:

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