Question 1

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is​

Accepted Answer

A)  ​a situation that neither restrains trade nor harms competition. 
B)  a legal restraint of trade. 
C)  a per se violation of antitrust law. 
D)  subject to analysis under the rule of reason. 
A)  ​a situation that neither restrains trade nor harms competition. 
B)  a legal restraint of trade. 
C)  a per se violation of antitrust law. 
D)  subject to analysis under the rule of reason.

Question 4

Speedee Snoboards, Inc., refuses to sell its products to Timber Mountain WinterSports Stores, Inc., a retail snowboard dealership. This is

Accepted Answer

A)  ​an exclusive-dealing contract. 
B)  ​a territorial restriction. 
C)  ​attempted monopolization. 
D)  ​a unilateral refusal to deal. 
A)  ​an exclusive-dealing contract. 
B)  ​a territorial restriction. 
C)  ​attempted monopolization. 
D)  ​a unilateral refusal to deal.

Question 5

Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Foods Marketplace, Inc., a retailer. This is​

Accepted Answer

A)  ​"an unfair or deceptive act or practice." 
B)  ​a per se violation. 
C)  ​not a violation. 
D)  ​subject to analysis under the rule of reason. 
A)  ​"an unfair or deceptive act or practice." 
B)  ​a per se violation. 
C)  ​not a violation. 
D)  ​subject to analysis under the rule of reason.

Question 6

Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is​

Accepted Answer

A)  ​a deal that inherently neither restrains trade nor harms competition. 
B)  a legal restraint of trade. 
C)  a per se violation of antitrust law. 
D)  subject to analysis under the rule of reason. 
A)  ​a deal that inherently neither restrains trade nor harms competition. 
B)  a legal restraint of trade. 
C)  a per se violation of antitrust law. 
D)  subject to analysis under the rule of reason.

Question 7

Rugged Bikes, Inc., makes and distributes Rugged-brand bicycles and accessories to authorized dealers, including Super Sports Stores, Inc. Super Sports operates dealerships in several locations. To insulate other dealers from direct competition, Rugged Bikes imposes limits on where Super Sports can sell Rugged products. This is​

Accepted Answer

A)  ​a territorial restriction. 
B)  ​a resale price maintenance agreement. 
C)  a unilateral refusal to deal. 
D)  a price-fixing agreement. 
A)  ​a territorial restriction. 
B)  ​a resale price maintenance agreement. 
C)  a unilateral refusal to deal. 
D)  a price-fixing agreement.

Question 8

It is in society's interest to condemn every firm that acquires a position of power.

Accepted Answer

A) True 
 B)False

Question 9

A suit is filed against AgriSeeds Corporation, alleging that the firm committed the offense of monopolization. To determine whether AgriSeeds has monopoly power requires looking at​

Accepted Answer

A)  ​the company's size alone. 
B)  ​the marketing practices of AgriSeeds's competitors. 
C)  ​AgriSeeds's marketing techniques. 
D)  ​the relevant market. 
A)  ​the company's size alone. 
B)  ​the marketing practices of AgriSeeds's competitors. 
C)  ​AgriSeeds's marketing techniques. 
D)  ​the relevant market.

Question 10

Fact Pattern 31-1
​Bodycare Corporation makes and sells ChemMed, 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.
-Refer to Fact Pattern 31-1.Bodycare pays Deja Vu notto sell its product. This is​

Accepted Answer

A)  ​a market division. 
B)  a refusal to deal. 
C)  an exclusive-dealing contract. 
D)  a price-fixing agreement. 
A)  ​a market division. 
B)  a refusal to deal. 
C)  an exclusive-dealing contract. 
D)  a price-fixing agreement.

Question 11

Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is​

Accepted Answer

A)  ​a per se violation of antitrust law. 
B)  a legal restraint of trade. 
C)  ​subject to evaluation under the rule of reason. 
D)  ​not subject to antitrust law. 
A)  ​a per se violation of antitrust law. 
B)  a legal restraint of trade. 
C)  ​subject to evaluation under the rule of reason. 
D)  ​not subject to antitrust law.

Question 12

To acquire monopoly power in its market, Global Condiments, Inc., sets its prices substantially below the normal costs of production. Under antitrust law, this is​

Accepted Answer

A)  ​a per se violation. 
B)  ​a violation if the firm's competitors set similar prices. 
C)  ​a violation if the firm thereby acquires monopoly power. 
D)  ​not a violation. 
A)  ​a per se violation. 
B)  ​a violation if the firm's competitors set similar prices. 
C)  ​a violation if the firm thereby acquires monopoly power. 
D)  ​not a violation.

Exam 31: Antitrust Law and Promoting Competition

Insurance companies are exempt from antitrust laws whenever state regulation exists.

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

The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is​

Speedee Snoboards, Inc., refuses to sell its products to Timber Mountain WinterSports Stores, Inc., a retail snowboard dealership. This is

Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Foods Marketplace, Inc., a retailer. This is​

Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is​

It is in society's interest to condemn every firm that acquires a position of power.

A suit is filed against AgriSeeds Corporation, alleging that the firm committed the offense of monopolization. To determine whether AgriSeeds has monopoly power requires looking at​

Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is​

To acquire monopoly power in its market, Global Condiments, Inc., sets its prices substantially below the normal costs of production. Under antitrust law, this is​

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The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is

Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Foods Marketplace, Inc., a retailer. This is

Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is

A suit is filed against AgriSeeds Corporation, alleging that the firm committed the offense of monopolization. To determine whether AgriSeeds has monopoly power requires looking at

Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is

To acquire monopoly power in its market, Global Condiments, Inc., sets its prices substantially below the normal costs of production. Under antitrust law, this is