Question 1

To determine "market share" requires knowledge of which of the following?

Accepted Answer

A) What other products are substitutable for the product. 
B) Where the product is sold. 
C) How much of the product is sold. 
D) All of the above 
A) What other products are substitutable for the product. 
B) Where the product is sold. 
C) How much of the product is sold. 
D) All of the above

Question 2

Which of the following remedies is available under the Sherman Act?

Accepted Answer

A) Injunctions. 
B) Consequential damages. 
C) Restitution. 
D) None of the above. 
A) Injunctions. 
B) Consequential damages. 
C) Restitution. 
D) None of the above.

Question 3

With tying arrangements, the courts may establish a seller's economic power by showing that:

Accepted Answer

A) the seller occupied a dominant position in the tying market. 
B) the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C) a substantial number of customers have accepted the tying arrangement and the only explanation for their willingness to comply is the seller's economic power in the tying market. 
D) Any of the above. 
E) (a) and (c), but not (b) 
A) the seller occupied a dominant position in the tying market. 
B) the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C) a substantial number of customers have accepted the tying arrangement and the only explanation for their willingness to comply is the seller's economic power in the tying market. 
D) Any of the above. 
E) (a) and (c), but not (b)

Question 4

A restraint of trade may be classified as either horizontal or vertical.

Accepted Answer

A) True 
 B)False

Question 5

A monopolistic market will produce fewer goods than a competitive market would, but price would not ordinarily be affected.

Accepted Answer

A) True 
 B)False

Question 6

Any violation of Section 2 of the Sherman Act constituting a conspiracy to monopolize would also constitute a violation of Section 1.

Accepted Answer

A) True 
 B)False

Question 7

Under Section 1 of the Sherman Act, which of the following is illegal per se?

Accepted Answer

A) Vertical market allocations. 
B) Horizontal market allocations. 
C) Vertical price fixing. 
D) (b) and (c). 
A) Vertical market allocations. 
B) Horizontal market allocations. 
C) Vertical price fixing. 
D) (b) and (c).

Question 8

Which of the following occurs when the seller of a product, service, or intangible conditions its sale on the buyer's purchasing a second product, service, or intangible from the seller?

Accepted Answer

A) Boycott. 
B) Tying agreement. 
C) Monopoly. 
D) Price fixing. 
A) Boycott. 
B) Tying agreement. 
C) Monopoly. 
D) Price fixing.

Question 9

Sarreno Cheese Co.supplies mozzarella cheese to pizza restaurants at $1.50 per pound.In order to snare the business from one large pizza chain, Sarreno offers to sell them cheese at $1.25 per pound.This will violate the Robinson-Patman Act unless:

Accepted Answer

A) the pizza chain can already get the cheese for $1.25 elsewhere. 
B) Sarreno can show its price is justified because of a cost savings based on quantity. 
C) Sarreno lowers the price to all its customers. 
D) Two of the above, (b) and (c). 
E) Any of the above. 
A) the pizza chain can already get the cheese for $1.25 elsewhere. 
B) Sarreno can show its price is justified because of a cost savings based on quantity. 
C) Sarreno lowers the price to all its customers. 
D) Two of the above, (b) and (c). 
E) Any of the above.

Question 10

The concerted action requirement of the Sherman Act Section 1:

Accepted Answer

A) may be established by an express agreement. 
B) is not met when a parent corporation and its wholly owned subsidiaries agree to a restraint in trade. 
C) requires factors, additional to conscious parallelism, such as identical sealed bids from each competitor. 
D) All of the above 
A) may be established by an express agreement. 
B) is not met when a parent corporation and its wholly owned subsidiaries agree to a restraint in trade. 
C) requires factors, additional to conscious parallelism, such as identical sealed bids from each competitor. 
D) All of the above

Question 11

The Justice Department's and states' settlement with Microsoft, affirmed by the D.C.Circuit Court of Appeals in 2004, allowed Microsoft to remain one company and, among other things, allowed Microsoft to keep confidential the programming interfaces that its products rely on to link to Windows code.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the validity and effect of each of the following:
a.Two manufacturers of the same product decide to allocate territories with one taking the southern states.
b.A labor union encourages its members and all consumers to boycott a product manufactured by a company that refuses to honor a union contract.
c.Bargain Betty's Department Store sells its products for 10% under the suggested retail price.One manufacturer tells the store it will not supply wholesale goods to it unless it charges at least the suggested retail price.

Accepted Answer

a.This is a horizontal market allocation

Question 13

Harry Jones at Jones Brothers Furniture Co.does not like the Brite Lamp Co.representative, so he decided that Jones Brothers would boycott Brite.Under the Sherman Act, this is:

Accepted Answer

A) per se illegal. 
B) no violation. 
C) a tying arrangement. 
D) vertical market allocation. 
A) per se illegal. 
B) no violation. 
C) a tying arrangement. 
D) vertical market allocation.

Question 14

Section 1 of the Sherman Act outlaws monopolies and attempts to monopolize.

Accepted Answer

A) True 
 B)False

Question 15

W & W, Inc.manufactures and sells widgets.It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers.Does Marklin have liability for price discrimination? Does W & W, Inc.have liability for price discrimination? Explain.

Accepted Answer

W & W, Inc.has liability under the Robin

Question 16

The validity, under antitrust law, of a joint venture depends on the competitors' purpose in forming it.

Accepted Answer

A) True 
 B)False

Question 17

In the case of Eastman Kodak Co.v.Image Technical Services, Inc.the U.S.Supreme Court stated that to violate Section 2 of the Sherman Act, Kodak would have to possess monopoly power in the relevant market and willfully acquire or maintain that power, as distinguished from growing or developing as a consequence of a superior product, business acumen, or historic accident.

Accepted Answer

A) True 
 B)False

Question 18

Under the Clayton Act, private parties can bring civil actions in federal court for treble damages and attorneys' fees.

Accepted Answer

A) True 
 B)False

Question 19

The National Cooperative Research Act:

Accepted Answer

A) prohibits using the rule of reason test in judging joint ventures in research and development of new technology. 
B) is designed to clear up uncertainty about the legality of joint ventures. 
C) now requires treble damages if joint ventures are formed in violation of Section 1 of the Sherman Act. 
D) All of the above. 
A) prohibits using the rule of reason test in judging joint ventures in research and development of new technology. 
B) is designed to clear up uncertainty about the legality of joint ventures. 
C) now requires treble damages if joint ventures are formed in violation of Section 1 of the Sherman Act. 
D) All of the above.

Question 20

Section 1 of the Sherman Act does not prohibit concerted action.

Accepted Answer

A) True 
 B)False

Exam 43: Antitrust

To determine "market share" requires knowledge of which of the following?

Which of the following remedies is available under the Sherman Act?

With tying arrangements, the courts may establish a seller's economic power by showing that:

A restraint of trade may be classified as either horizontal or vertical.

A monopolistic market will produce fewer goods than a competitive market would, but price would not ordinarily be affected.

Any violation of Section 2 of the Sherman Act constituting a conspiracy to monopolize would also constitute a violation of Section 1.

Under Section 1 of the Sherman Act, which of the following is illegal per se?

Which of the following occurs when the seller of a product, service, or intangible conditions its sale on the buyer's purchasing a second product, service, or intangible from the seller?

Sarreno Cheese Co.supplies mozzarella cheese to pizza restaurants at $1.50 per pound.In order to snare the business from one large pizza chain, Sarreno offers to sell them cheese at $1.25 per pound.This will violate the Robinson-Patman Act unless:

The concerted action requirement of the Sherman Act Section 1:

The Justice Department's and states' settlement with Microsoft, affirmed by the D.C.Circuit Court of Appeals in 2004, allowed Microsoft to remain one company and, among other things, allowed Microsoft to keep confidential the programming interfaces that its products rely on to link to Windows code.

Harry Jones at Jones Brothers Furniture Co.does not like the Brite Lamp Co.representative, so he decided that Jones Brothers would boycott Brite.Under the Sherman Act, this is:

Section 1 of the Sherman Act outlaws monopolies and attempts to monopolize.

The validity, under antitrust law, of a joint venture depends on the competitors' purpose in forming it.

Under the Clayton Act, private parties can bring civil actions in federal court for treble damages and attorneys' fees.

The National Cooperative Research Act:

Section 1 of the Sherman Act does not prohibit concerted action.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

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Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Accountants Legal Liability

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Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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