Exam 38: Antitrust Law and Promoting Competition

Any conspiracy-even if it occurs outside the United States-that has a substantial effect on U.S. commerce is within the reach of the Sherman Act.

Healthcare Device,Inc.,has exclusive control over the market for its product. Healthcare Device's market power is most likely

A restraint of trade is an agreement between firms that has the effect of reducing anticompetitive business practices.

The U.S. Department of Justice can prosecute violations of all of the antitrust laws.

An anti trust action is brought against Carrier Transport Company,alleging the offense of attempted monopolization. To be guilty of this offense,Carrier's attempt must have

Gearbox,Inc.,a manufacturer of vehicle parts,refuses to sell to Motor Repair & Replace,Inc.,a national vehicle service firm. Gearbox convinces Cam & Cylinder Company,a competitor,to do the same. This is

Unilateral conduct cannot result in a violation of antitrust law.

Body care Corporation makes and sells Chem Med,the most prescribed name-brand blood pressure-lowering medication. Deja Vu Drugs,Inc.,has the potential to make a generic version of the same drug. -Bodycare pays Deja Vu not to sell its product. This is

To prevent its competitors from obtaining sufficient supplies to make their products,Continental Steel,Inc.,uses its market power to increase the prices of those supplies. This is

Joint refusals to deal are not subject to scrutiny under the Sherman Act.

Monopoly power is an extreme amount of market power.

Precision Parts Corporation and Aligned Gears,Inc.,are competitors selling certain machine parts that are otherwise generally unattainable in their geographic market. This market includes the states of Minnesota,North Dakota,and South Dakota. Precision Parts and Aligned Gears agree that Precision Parts will no longer sell in Minnesota and that Aligned Gears will no longer sell in North and South Dakota. Have Precision Parts and Aligned Gears violated any antitrust law? If so,which one? Explain. If they had divided their market by type of customer rather than geographic are,would the result be the same? Why or why not?

Monopoly power in and of itself constitutes the offense of monopolization.

Under what circumstances would Small's Market,a little store in Rustic,an isolated town,be considered a monopoly? If Small's Market is a monopoly,is it in violation of antitrust law?

A court would most likely rule that the agreement between Bodycare and Deja Vu is

A contract under which a seller forbids a buyer to purchase products from the seller's competitors is a tying arrangement.

An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement actually constitutes a reasonable restraint of trade.

The Clayton Act prohibits price discrimination.

An act must substantially affect interstate commerce to violate antitrust law.

Glass worx Corporation has exclusive control over the market for its products. Under anti trust law,this is