Question 1

A unilateral refusal to deal is a violation of Section 1 of the Sherman Act because there is a concerted action with others.

Accepted Answer

A) True 
 B)False

Question 2

The FTC Act can be used to recover treble damages.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an example of a vertical restraint of trade?

Accepted Answer

A) group boycott 
B) price fixing 
C) resale price maintenance 
D) division of markets 
A) group boycott 
B) price fixing 
C) resale price maintenance 
D) division of markets

Question 4

The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is examined by applying the ________.

Accepted Answer

A) Colgate doctrine 
B) Noerr doctrine 
C) per se rule 
D) rule of reason 
A) Colgate doctrine 
B) Noerr doctrine 
C) per se rule 
D) rule of reason

Question 5

Restraints that are not characterized as per se violations are not further examined using the rule of reason.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a defense to a charge of monopoly?

Accepted Answer

A) the Noerr doctrine 
B) natural monopoly 
C) conscious parallelism 
D) predatory pricing 
A) the Noerr doctrine 
B) natural monopoly 
C) conscious parallelism 
D) predatory pricing

Question 7

The Robinson-Patman Act is a federal statute that makes it mandatory to provide a notification prior to a merger.

Accepted Answer

A) True 
 B)False

Question 8

Only price-fixing conducted by sellers is considered a violation of Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 9

How is a relevant market identified by Section 2 of the Sherman Act?

Accepted Answer

Identifying the relevant market for a Se

Question 10

A merger between two regional fruit-sellers that do not sell fruit in the same geographical area is an example of a ________.

Accepted Answer

A) market extension merger 
B) conglomerate merger 
C) horizontal merger 
D) vertical merger 
A) market extension merger 
B) conglomerate merger 
C) horizontal merger 
D) vertical merger

Question 11

Federal antitrust laws provide only for government lawsuits.

Accepted Answer

A) True 
 B)False

Question 12

Competitors who agree that each will serve only a designated portion of the market are deemed to be engaging in a group boycott.

Accepted Answer

A) True 
 B)False

Question 13

The insurance business enjoys a statutory exemption from antitrust laws.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following businesses and activities enjoys an implied exemption from antitrust laws?

Accepted Answer

A) railroads 
B) agricultural cooperatives 
C) airlines 
D) labor unions 
A) railroads 
B) agricultural cooperatives 
C) airlines 
D) labor unions

Question 15

The Federal Trade Commission and the Department of Justice share the power to enforce the FTC Act.

Accepted Answer

A) True 
 B)False

Question 16

What is a vertical merger?

Accepted Answer

A) a merger between firms in totally unrelated businesses 
B) a merger that integrates the operations of a supplier and a customer 
C) a merger between two companies in similar fields whose sales do not overlap 
D) a merger between two or more companies that compete in the same business and geographical market 
A) a merger between firms in totally unrelated businesses 
B) a merger that integrates the operations of a supplier and a customer 
C) a merger between two companies in similar fields whose sales do not overlap 
D) a merger between two or more companies that compete in the same business and geographical market

Question 17

Conscious parallelism is seen when ________.

Accepted Answer

A) parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices 
B) one party makes an independent choice not to deal with another 
C) two or more firms act the same but no concerted action is shown 
D) a party's anticompetitive effects outweigh their procompetitive effects 
A) parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices 
B) one party makes an independent choice not to deal with another 
C) two or more firms act the same but no concerted action is shown 
D) a party's anticompetitive effects outweigh their procompetitive effects

Question 18

________ is seen when an independent choice is made by one party not to deal with another party.

Accepted Answer

A) Nonprice vertical restraint 
B) Monopoly to deal 
C) Unilateral refusal to deal 
D) Conscious parallelism 
A) Nonprice vertical restraint 
B) Monopoly to deal 
C) Unilateral refusal to deal 
D) Conscious parallelism

Question 19

The rule of reason is characterized by ________.

Accepted Answer

A) an automatic violation of Section 1 of the Sherman Act 
B) an inherently anticompetitive nature 
C) a lack of need for any evidence to deem the restraint unreasonable 
D) an evaluation of the company's market share, power, and other facets 
A) an automatic violation of Section 1 of the Sherman Act 
B) an inherently anticompetitive nature 
C) a lack of need for any evidence to deem the restraint unreasonable 
D) an evaluation of the company's market share, power, and other facets

Question 20

The ________ is a federal statute,enacted in 1930,that prohibits price discrimination.

Accepted Answer

A) Sherman Act 
B) Clayton Act 
C) Robinson-Patman Act 
D) Federal Trade Commission Act 
A) Sherman Act 
B) Clayton Act 
C) Robinson-Patman Act 
D) Federal Trade Commission Act

Exam 46: Antitrust Law and Unfair Trade Practices

A unilateral refusal to deal is a violation of Section 1 of the Sherman Act because there is a concerted action with others.

The FTC Act can be used to recover treble damages.

Which of the following is an example of a vertical restraint of trade?

The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is examined by applying the ________.

Restraints that are not characterized as per se violations are not further examined using the rule of reason.

Which of the following is a defense to a charge of monopoly?

The Robinson-Patman Act is a federal statute that makes it mandatory to provide a notification prior to a merger.

Only price-fixing conducted by sellers is considered a violation of Section 1 of the Sherman Act.

How is a relevant market identified by Section 2 of the Sherman Act?

A merger between two regional fruit-sellers that do not sell fruit in the same geographical area is an example of a ________.

Federal antitrust laws provide only for government lawsuits.

Competitors who agree that each will serve only a designated portion of the market are deemed to be engaging in a group boycott.

The insurance business enjoys a statutory exemption from antitrust laws.

Which of the following businesses and activities enjoys an implied exemption from antitrust laws?

The Federal Trade Commission and the Department of Justice share the power to enforce the FTC Act.

What is a vertical merger?

Conscious parallelism is seen when ________.

________ is seen when an independent choice is made by one party not to deal with another party.

The rule of reason is characterized by ________.

The ________ is a federal statute,enacted in 1930,that prohibits price discrimination.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

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