Question 1

Under the Clayton Act,a divestiture order is:

Accepted Answer

A)  notification from the Department of Justice that a merger is about to occur. 
B)  notification from the Department of Justice that a merger did not occur. 
C)  a decision by a court requiring a defendant to sell an enterprise. 
D)  an order by a court requiring an enterprise to dispose of its inventory. 
A)  notification from the Department of Justice that a merger is about to occur. 
B)  notification from the Department of Justice that a merger did not occur. 
C)  a decision by a court requiring a defendant to sell an enterprise. 
D)  an order by a court requiring an enterprise to dispose of its inventory. C

Question 2

The federal government may regulate any area of business to advance the nation's economic needs.

Accepted Answer

A) True 
 B)False  True

Question 3

When large-size enterprises plan to merge,they must give written notice to the Interstate Commerce Commission.

Accepted Answer

A) True 
 B)False  False

Question 4

Tying:

Accepted Answer

A)  is a violation of the Sherman Act. 
B)  occurs when sellers require buyers to purchase an unwanted product to get a wanted one. 
C)  both of the above. 
D)  none of the above. 
A)  is a violation of the Sherman Act. 
B)  occurs when sellers require buyers to purchase an unwanted product to get a wanted one. 
C)  both of the above. 
D)  none of the above.

Question 5

In large cities talent agencies typically charge clients no more than a 10% commission.Tina's Talent,Amy's Actors & Models and the Barton Agency are the only three talent agents in a small city.Due to the limited amount of work available for actors and models in their city,the three talent agents have gotten together and agreed to never charge a commission below 15%.Discuss if this is acceptable under the Sherman Act.

Accepted Answer

This is an example of horizontal price-f

Question 6

Boycotts are always illegal,even when done with good intentions.

Accepted Answer

A) True 
 B)False

Question 7

Unfair competition is controlled by:

Accepted Answer

A)  statutes. 
B)  administrative agencies. 
C)  administrative regulations. 
D)  all of the above. 
A)  statutes. 
B)  administrative agencies. 
C)  administrative regulations. 
D)  all of the above.

Question 8

State governments may regulate business in all of its aspects,even if such regulation imposes a burden on interstate commerce.

Accepted Answer

A) True 
 B)False

Question 9

An agreement between real estate brokers to never charge a commission less than 6% is not an example of price fixing.

Accepted Answer

A) True 
 B)False

Question 10

When the effect of an antitrust violation is to raise prices:

Accepted Answer

A)  damages are automatically considered doubled. 
B)  each plaintiff must sue individually. 
C)  imprisonment for the guilty is mandatory. 
D)  the state attorney general may bring a class action suit for damages. 
A)  damages are automatically considered doubled. 
B)  each plaintiff must sue individually. 
C)  imprisonment for the guilty is mandatory. 
D)  the state attorney general may bring a class action suit for damages.

Question 11

A divestiture order is a decree ordering a defendant to dispose of excessive ownership or control of interests in competing enterprises.

Accepted Answer

A) True 
 B)False

Question 12

The Sherman Act does not prohibit:

Accepted Answer

A)  a company from engaging in purposeful conduct to exclude competitors. 
B)  a seller from dominating a market because of superior product or business. 
C)  competitors from agreeing not to deal with certain buyers. 
D)  all of the above. 
A)  a company from engaging in purposeful conduct to exclude competitors. 
B)  a seller from dominating a market because of superior product or business. 
C)  competitors from agreeing not to deal with certain buyers. 
D)  all of the above.

Question 13

A violator of the Sherman Act may be subject to:

Accepted Answer

A)  fine only. 
B)  imprisonment only. 
C)  both fine and imprisonment. 
D)  neither fine nor imprisonment. 
A)  fine only. 
B)  imprisonment only. 
C)  both fine and imprisonment. 
D)  neither fine nor imprisonment.

Question 14

A manufacturer having a restriction on territories in the form of a sole outlet is a per se violation.

Accepted Answer

A) True 
 B)False

Question 15

The Clayton Act prohibits:

Accepted Answer

A)  all unfair methods of competition. 
B)  conspiracies in restraint of trade. 
C)  attempts to monopolize. 
D)  price discrimination between buyers of like commodities. 
A)  all unfair methods of competition. 
B)  conspiracies in restraint of trade. 
C)  attempts to monopolize. 
D)  price discrimination between buyers of like commodities.

Question 16

The Robinson-Patman Act:

Accepted Answer

A)  prohibits charging different prices to different buyers when the margin costs are the same. 
B)  allows sellers to offer incentives and bonuses to certain customers. 
C)  allows sellers to refuse to deal with anyone for any reason. 
D)  all of the above. 
A)  prohibits charging different prices to different buyers when the margin costs are the same. 
B)  allows sellers to offer incentives and bonuses to certain customers. 
C)  allows sellers to refuse to deal with anyone for any reason. 
D)  all of the above.

Question 17

Having a large percentage of the market is not necessarily a monopoly.

Accepted Answer

A) True 
 B)False

Question 18

Section __________ of the Sherman Act applies to agreements,conduct,or conspiracies to restrain trade,which can consist of price-fixing,typing,and monopolization.

Accepted Answer

A)  A 
B)  B 
C)  1 
D)  2 
A)  A 
B)  B 
C)  1 
D)  2

Question 19

The United States Supreme Court generally has held that vertical merger agreements should not automatically be condemned as an unlawful restraint of interstate commerce merely because they create the potential to monopolize it.

Accepted Answer

A) True 
 B)False

Question 20

A person who is harmed by a conspiracy that violates the Sherman Antitrust Act may sue the wrongdoers for four times the actual damages.

Accepted Answer

A) True 
 B)False

Exam 5: Government Regulation of Competition and Prices

Under the Clayton Act,a divestiture order is:

The federal government may regulate any area of business to advance the nation's economic needs.

When large-size enterprises plan to merge,they must give written notice to the Interstate Commerce Commission.

Tying:

Boycotts are always illegal,even when done with good intentions.

Unfair competition is controlled by:

State governments may regulate business in all of its aspects,even if such regulation imposes a burden on interstate commerce.

An agreement between real estate brokers to never charge a commission less than 6% is not an example of price fixing.

When the effect of an antitrust violation is to raise prices:

A divestiture order is a decree ordering a defendant to dispose of excessive ownership or control of interests in competing enterprises.

The Sherman Act does not prohibit:

A violator of the Sherman Act may be subject to:

A manufacturer having a restriction on territories in the form of a sole outlet is a per se violation.

The Clayton Act prohibits:

The Robinson-Patman Act:

Having a large percentage of the market is not necessarily a monopoly.

Section __________ of the Sherman Act applies to agreements,conduct,or conspiracies to restrain trade,which can consist of price-fixing,typing,and monopolization.

The United States Supreme Court generally has held that vertical merger agreements should not automatically be condemned as an unlawful restraint of interstate commerce merely because they create the potential to monopolize it.

A person who is harmed by a conspiracy that violates the Sherman Antitrust Act may sue the wrongdoers for four times the actual damages.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters