Question 1

If a wholesaler gets a retail outlet for its goods through merger, this is a horizontal merger.

Accepted Answer

A) True 
 B)False  False

Question 2

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Accepted Answer

A) unfair conduct or abuse of power. 
B) concerted action. 
C) competitive behavior. 
D) economic advantage. 
A) unfair conduct or abuse of power. 
B) concerted action. 
C) competitive behavior. 
D) economic advantage. A

Question 3

When the per se approach is inappropriate in a Section 1 Sherman Act case but the challenged conduct has obvious anticompetitive effects, courts may use an intermediate test which is a "quick look" rule of reason analysis.

Accepted Answer

A) True 
 B)False  True

Question 4

The Supreme Court in the Leegin Creative Leather Products, Inc.v.PSKS, Inc.case, held that:

Accepted Answer

A) the per se rule of unlawfulness is the appropriate standard to judge vertical price restraints. 
B) the rule of reason is the appropriate standard to judge vertical price restraints. 
C) resale price maintenance does not have economic dangers. 
D) vertical agreements setting minimum resale prices have only anticompetitive effects. 
A) the per se rule of unlawfulness is the appropriate standard to judge vertical price restraints. 
B) the rule of reason is the appropriate standard to judge vertical price restraints. 
C) resale price maintenance does not have economic dangers. 
D) vertical agreements setting minimum resale prices have only anticompetitive effects.

Question 5

A form of business association organized to carry out a particular business enterprise is a:

Accepted Answer

A) sole proprietorship. 
B) tenancy in common. 
C) joint venture. 
D) competitor. 
A) sole proprietorship. 
B) tenancy in common. 
C) joint venture. 
D) competitor.

Question 6

The Clayton Act exempts labor, agricultural, and horticultural organizations from all antitrust laws.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true in relation to market share and monopoly power?

Accepted Answer

A) A market share greater than 50% generally indicates monopoly power. 
B) A market share between 50 and 75% is, in itself, inconclusive in determining monopoly power. 
C) Market share is rarely used as a test of monopoly power because it is difficult to determine. 
D) Market share is a common test for monopoly power because it is an easy, objective measurement for courts to determine. 
A) A market share greater than 50% generally indicates monopoly power. 
B) A market share between 50 and 75% is, in itself, inconclusive in determining monopoly power. 
C) Market share is rarely used as a test of monopoly power because it is difficult to determine. 
D) Market share is a common test for monopoly power because it is an easy, objective measurement for courts to determine.

Question 8

In determining market share, the relevant geographic market is the national market.

Accepted Answer

A) True 
 B)False

Question 9

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Accepted Answer

A) True 
 B)False

Question 10

Failure to comply with Section 1, but not Section 2, of the Sherman Act is a criminal violation.

Accepted Answer

A) True 
 B)False

Question 11

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

Accepted Answer

A) this is per se illegal. 
B) there is no violation. 
C) this will be tested under the rule of reason. 
D) there is a tying arrangement. 
A) this is per se illegal. 
B) there is no violation. 
C) this will be tested under the rule of reason. 
D) there is a tying arrangement.

Question 12

The 1992 and 1997 Horizontal Merger Guidelines:

Accepted Answer

A) were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B) require a mechanical application; in order to reduce the previously used analytic framework, which was far too subjective and uncertain. 
C) rejects use of the Herfindahl-Hirschman Index. 
D) consist of four market concentration categories. 
E) None of the above. 
A) were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B) require a mechanical application; in order to reduce the previously used analytic framework, which was far too subjective and uncertain. 
C) rejects use of the Herfindahl-Hirschman Index. 
D) consist of four market concentration categories. 
E) None of the above.

Question 13

In enacting Section 2 of the Clayton Act, Congress was concerned with sellers who sought to harm or eliminate their competitors through:

Accepted Answer

A) mergers. 
B) price discrimination. 
C) tying arrangements. 
D) None of the above. 
A) mergers. 
B) price discrimination. 
C) tying arrangements. 
D) None of the above.

Question 14

Elko, Inc.and Fuldan, Inc.closely monitor each other's actions regarding the sale of consumer electronic products.Each corporation tries to match the other's product designs and specifications, prices, and advertising strategies.As a result, the two corporations have similar products, prices, and profits.Is this a violation of the antitrust laws?

Accepted Answer

This may very well be a violation of Sec

Question 15

Section 2 of the Sherman Act prohibits contracts, combinations, and conspiracies that restrain trade.

Accepted Answer

A) True 
 B)False

Question 16

The Justice Department has expanded its enforcement policy of the Sherman Act to cover foreign companies' conduct that harms U.S.exports.

Accepted Answer

A) True 
 B)False

Question 17

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

Accepted Answer

A) True 
 B)False

Question 18

The Clayton Act deals with which of the following provisions?

Accepted Answer

A) Supply discrimination. 
B) Tying contracts and mergers. 
C) Interlocking ties. 
D) Monopoly conspiracies. 
A) Supply discrimination. 
B) Tying contracts and mergers. 
C) Interlocking ties. 
D) Monopoly conspiracies.

Question 19

The Federal Trade Commission may issue a cease and desist order having the effect of an injunction.

Accepted Answer

A) True 
 B)False

Question 20

If a small manufacturer of vacuum cleaners conditions the sales of its cleaners on the buyer's purchasing only that manufacturer's bags, under the Sherman Act this is:

Accepted Answer

A) illegal per se. 
B) a tying arrangement, which will be closely scrutinized by the law. 
C) a vertical customer restriction. 
D) no violation. 
A) illegal per se. 
B) a tying arrangement, which will be closely scrutinized by the law. 
C) a vertical customer restriction. 
D) no violation.

Exam 43: Antitrust

If a wholesaler gets a retail outlet for its goods through merger, this is a horizontal merger.

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

When the per se approach is inappropriate in a Section 1 Sherman Act case but the challenged conduct has obvious anticompetitive effects, courts may use an intermediate test which is a "quick look" rule of reason analysis.

The Supreme Court in the Leegin Creative Leather Products, Inc.v.PSKS, Inc.case, held that:

A form of business association organized to carry out a particular business enterprise is a:

The Clayton Act exempts labor, agricultural, and horticultural organizations from all antitrust laws.

Which of the following is true in relation to market share and monopoly power?

In determining market share, the relevant geographic market is the national market.

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Failure to comply with Section 1, but not Section 2, of the Sherman Act is a criminal violation.

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

The 1992 and 1997 Horizontal Merger Guidelines:

In enacting Section 2 of the Clayton Act, Congress was concerned with sellers who sought to harm or eliminate their competitors through:

Section 2 of the Sherman Act prohibits contracts, combinations, and conspiracies that restrain trade.

The Justice Department has expanded its enforcement policy of the Sherman Act to cover foreign companies' conduct that harms U.S.exports.

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

The Clayton Act deals with which of the following provisions?

The Federal Trade Commission may issue a cease and desist order having the effect of an injunction.

If a small manufacturer of vacuum cleaners conditions the sales of its cleaners on the buyer's purchasing only that manufacturer's bags, under the Sherman Act this is:

Introduction to Law

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