Question 1

In an attempt to limit the power of large purchasers, Congress amended Section 2 of the Clayton Act in 1936 by adopting the:

Accepted Answer

A) Sherman Act. 
B) Federal Trade Commission Act. 
C) Robinson-Patman Act. 
D) All of the above. 
A) Sherman Act. 
B) Federal Trade Commission Act. 
C) Robinson-Patman Act. 
D) All of the above.

Question 2

In determining whether illegal monopolization has occurred and whether a firm has engaged in unfair conduct:

Accepted Answer

A) a firm possessing monopoly power has the burden of proving it acquired such power passively or that the power was thrust upon it. 
B) the court will conclude that monopoly power, combined with conduct designed to exclude competitors, violates Section 1 of the Sherman Act. 
C) a court will find that monopoly power must be accompanied by some type of predatory practice. 
D) courts do not agree on what constitutes unfair conduct.Any of the above approaches may be used. 
A) a firm possessing monopoly power has the burden of proving it acquired such power passively or that the power was thrust upon it. 
B) the court will conclude that monopoly power, combined with conduct designed to exclude competitors, violates Section 1 of the Sherman Act. 
C) a court will find that monopoly power must be accompanied by some type of predatory practice. 
D) courts do not agree on what constitutes unfair conduct.Any of the above approaches may be used.

Question 3

All tying arrangements are per se illegal.

Accepted Answer

A) True 
 B)False

Question 4

If all milk producers in the area agree to set a minimum price for raw milk, this would be an example of:

Accepted Answer

A) horizontal allocation. 
B) vertical market restraint. 
C) horizontal price fixing. 
D) a tying arrangement. 
A) horizontal allocation. 
B) vertical market restraint. 
C) horizontal price fixing. 
D) a tying arrangement.

Question 5

The National Cooperative Research Act was passed to facilitate the use of joint ventures for joint research and development.

Accepted Answer

A) True 
 B)False

Question 6

Three of the airline companies agree that they will not go any lower than $100 each way for coast-to-coast tickets.This is:

Accepted Answer

A) vertical price maintenance. 
B) a horizontal group boycott. 
C) vertical market allocation. 
D) horizontal price fixing. 
A) vertical price maintenance. 
B) a horizontal group boycott. 
C) vertical market allocation. 
D) horizontal price fixing.

Question 7

In normal times, the economic community is best served by:

Accepted Answer

A) free competition in trade and industry. 
B) the elimination of competition. 
C) contracts and combinations that restrain trade. 
D) conscious parallelism to stabilize prices. 
A) free competition in trade and industry. 
B) the elimination of competition. 
C) contracts and combinations that restrain trade. 
D) conscious parallelism to stabilize prices.

Question 8

A merger involving noncompeting firms producing unrelated goods and services is termed a:

Accepted Answer

A) tying arrangement. 
B) vertical merger. 
C) conglomerate merger. 
D) horizontal merger. 
A) tying arrangement. 
B) vertical merger. 
C) conglomerate merger. 
D) horizontal merger.

Question 9

The Sherman Act prohibits contracts that unreasonably restrain trade.

Accepted Answer

A) True 
 B)False

Question 10

If the National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms, this recommendation is probably:

Accepted Answer

A) a per se price fixing violation of the Sherman Act. 
B) not a violation of the Sherman Act, because it has been made by a professional association. 
C) not a violation of the Sherman Act, because a fee is different from a price. 
D) subject to the rule of reason. 
A) a per se price fixing violation of the Sherman Act. 
B) not a violation of the Sherman Act, because it has been made by a professional association. 
C) not a violation of the Sherman Act, because a fee is different from a price. 
D) subject to the rule of reason.

Question 11

Under the 2004 amendments, individuals who violate the Sherman Antitrust Act, Sections 1 or 2, may be imprisoned for ten years and fined up to $1 million.

Accepted Answer

A) True 
 B)False

Question 12

What are the major functions of the Federal Trade Commission (FTC) and what power does the FTC have?

Accepted Answer

The Federal Trade Commission has two maj

Question 13

The manufacturer of Rubberware agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus $ .50 per bowl.This is:

Accepted Answer

A) horizontal price fixing. 
B) vertical price fixing. 
C) vertical market allocation. 
D) a group boycott. 
A) horizontal price fixing. 
B) vertical price fixing. 
C) vertical market allocation. 
D) a group boycott.

Question 14

Agreements by which the seller or lessor of a product conditions the agreement upon the buyer's or lessee's promise not to deal in a competitor's goods are:

Accepted Answer

A) tying arrangements. 
B) exclusive dealing arrangements. 
C) attempts to monopolize. 
D) None of the above. 
A) tying arrangements. 
B) exclusive dealing arrangements. 
C) attempts to monopolize. 
D) None of the above.

Question 15

Which of the following is correct regarding the Clayton Act?

Accepted Answer

A) It deals with price discrimination, tying contracts, and mergers. 
B) It added criminal sanctions to the Sherman Act. 
C) It repealed the Robinson-Patman Act. 
D) It included labor organizations in its coverage. 
A) It deals with price discrimination, tying contracts, and mergers. 
B) It added criminal sanctions to the Sherman Act. 
C) It repealed the Robinson-Patman Act. 
D) It included labor organizations in its coverage.

Question 16

The definition of price-fixing includes agreements that:

Accepted Answer

A) may, among other things, depress prices. 
B) stabilize prices. 
C) raise prices. 
D) All of the above. 
A) may, among other things, depress prices. 
B) stabilize prices. 
C) raise prices. 
D) All of the above.

Question 17

Monopoly power is tested by determining how big the corporation is in terms of total assets.

Accepted Answer

A) True 
 B)False

Question 18

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Accepted Answer

A) True 
 B)False

Question 19

Some group boycotts are illegal per se while others are subject to the rule of reason.

Accepted Answer

A) True 
 B)False

Question 20

All price discrimination is illegal under the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Exam 43: Antitrust

In an attempt to limit the power of large purchasers, Congress amended Section 2 of the Clayton Act in 1936 by adopting the:

In determining whether illegal monopolization has occurred and whether a firm has engaged in unfair conduct:

All tying arrangements are per se illegal.

If all milk producers in the area agree to set a minimum price for raw milk, this would be an example of:

The National Cooperative Research Act was passed to facilitate the use of joint ventures for joint research and development.

Three of the airline companies agree that they will not go any lower than $100 each way for coast-to-coast tickets.This is:

In normal times, the economic community is best served by:

A merger involving noncompeting firms producing unrelated goods and services is termed a:

The Sherman Act prohibits contracts that unreasonably restrain trade.

If the National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms, this recommendation is probably:

Under the 2004 amendments, individuals who violate the Sherman Antitrust Act, Sections 1 or 2, may be imprisoned for ten years and fined up to $1 million.

What are the major functions of the Federal Trade Commission (FTC) and what power does the FTC have?

The manufacturer of Rubberware agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus $ .50 per bowl.This is:

Agreements by which the seller or lessor of a product conditions the agreement upon the buyer's or lessee's promise not to deal in a competitor's goods are:

Which of the following is correct regarding the Clayton Act?

The definition of price-fixing includes agreements that:

Monopoly power is tested by determining how big the corporation is in terms of total assets.

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Some group boycotts are illegal per se while others are subject to the rule of reason.

All price discrimination is illegal under the Robinson-Patman Act.

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

Operation and Dissolution of General Partnerships

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

Consumer Protection

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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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