Question 1

A person or enterprise harmed by a Sherman Act violation may bring an action for:

Accepted Answer

A)  punitive damages only. 
B)  treble damages. 
C)  quadruple damages. 
D)  actual damages only. 
A)  punitive damages only. 
B)  treble damages. 
C)  quadruple damages. 
D)  actual damages only.

Question 2

Governments may regulate prices but not credit terms.

Accepted Answer

A) True 
 B)False

Question 3

__________ power relates to a firm's ability to control price and exclude competitors.

Accepted Answer

A)  Market 
B)  Competitive 
C)  Product 
D)  Production 
A)  Market 
B)  Competitive 
C)  Product 
D)  Production

Question 4

Requiring buyers to purchase one product in order to get another is acceptable practice and not a violation of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 5

Freezo Refrigerators are sold by various retailers.Most of the same retailers also sell Icy Refrigerators.The Freezo brand outsells Icy in some stores,but not in others.Freezo has decided to offer secret bonuses and discounts to retailers where the sale of Freezo Refrigerators lags behind the sale of Icy Refrigerators.Freezo sees this action as an advertising ploy to increase market share.Retail stores where Freezo is number one are not eligible for any of these bonuses and discounts.Discuss the implications of Freezo's advertising plan.

Accepted Answer

Both the Clayton Act and the Robinson-Pa

Question 6

A person who attempts to monopolize any part of the trade or commerce among the states:

Accepted Answer

A)  is guilty of a misdemeanor. 
B)  is guilty of a felony. 
C)  can be fined up to $500,000. 
D)  none of the above. 
A)  is guilty of a misdemeanor. 
B)  is guilty of a felony. 
C)  can be fined up to $500,000. 
D)  none of the above.

Question 7

A state may prohibit a seller from selling below cost if the purpose is to harm competitors.

Accepted Answer

A) True 
 B)False

Question 8

Quickness Computer,Inc.is a manufacturer of computers.A Hollywood star indicated on national television that Quickness was his favorite computer.Buoyed by this comment,sales of Quickness computers surged.Since demand outpaced supply,Quickness decided to sell no more computers unless an accompanying software package was purchased.A competitor informed the Office of the Attorney General of this policy,asserting it was illegal.Decide.

Accepted Answer

It is a violation of law to force purcha

Question 9

A "suggested retail price" is not a violation of the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 10

The Robinson-Patman Act guarantees a seller the right to refuse to deal with anyone for any reason or purpose.

Accepted Answer

A) True 
 B)False

Question 11

The Clayton Act prohibits price discrimination between different buyers of like commodities when the effect may be to substantially lessen competition.

Accepted Answer

A) True 
 B)False

Question 12

Under the Clayton Act,when large-scale enterprises plan to merge,they must in advance:

Accepted Answer

A)  notify the New York Stock Exchange. 
B)  notify the President of the United States. 
C)  complete the necessary financing arrangements. 
D)  notify the Antitrust Division of the Department of Justice. 
A)  notify the New York Stock Exchange. 
B)  notify the President of the United States. 
C)  complete the necessary financing arrangements. 
D)  notify the Antitrust Division of the Department of Justice.

Question 13

Price discrimination is not permitted even when it can be justified on the basis of a difference in grade,quality,or quantity.

Accepted Answer

A) True 
 B)False

Question 14

Price regulations:

Accepted Answer

A)  may be imposed by the national government. 
B)  may be imposed by state governments. 
C)  include rules regarding credit terms and other charges. 
D)  all of the above. 
A)  may be imposed by the national government. 
B)  may be imposed by state governments. 
C)  include rules regarding credit terms and other charges. 
D)  all of the above.

Question 15

The attorney general of a state may bring a class action suit to recover damages for those injured by an antitrust violation which raised prices.

Accepted Answer

The answer of The attorney general of a state may...

Question 16

Criminal penalties are possible under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 17

The government can regulate not just businesses,but also business competition and prices.

Accepted Answer

A) True 
 B)False

Question 18

The Sherman Act focuses on:

Accepted Answer

A)  unfair methods of competition. 
B)  combinations or contracts in restraint of trade. 
C)  permitted price discriminations. 
D)  intrastate commerce. 
A)  unfair methods of competition. 
B)  combinations or contracts in restraint of trade. 
C)  permitted price discriminations. 
D)  intrastate commerce.

Question 19

The Sherman Act applies to:

Accepted Answer

A)  buying activities. 
B)  selling activities. 
C)  production activities. 
D)  all of the above. 
A)  buying activities. 
B)  selling activities. 
C)  production activities. 
D)  all of the above.

Question 20

Vertical mergers:

Accepted Answer

A)  occur between firms that have a competitor relationship. 
B)  occur between firms that have buyer and seller relationships. 
C)  are not covered by the Clayton Act. 
D)  are always protected by the federal government. 
A)  occur between firms that have a competitor relationship. 
B)  occur between firms that have buyer and seller relationships. 
C)  are not covered by the Clayton Act. 
D)  are always protected by the federal government.

Exam 5: Government Regulation of Competition and Prices

A person or enterprise harmed by a Sherman Act violation may bring an action for:

Governments may regulate prices but not credit terms.

__________ power relates to a firm's ability to control price and exclude competitors.

Requiring buyers to purchase one product in order to get another is acceptable practice and not a violation of the Sherman Act.

A person who attempts to monopolize any part of the trade or commerce among the states:

A state may prohibit a seller from selling below cost if the purpose is to harm competitors.

A "suggested retail price" is not a violation of the antitrust laws.

The Robinson-Patman Act guarantees a seller the right to refuse to deal with anyone for any reason or purpose.

The Clayton Act prohibits price discrimination between different buyers of like commodities when the effect may be to substantially lessen competition.

Under the Clayton Act,when large-scale enterprises plan to merge,they must in advance:

Price discrimination is not permitted even when it can be justified on the basis of a difference in grade,quality,or quantity.

Price regulations:

The attorney general of a state may bring a class action suit to recover damages for those injured by an antitrust violation which raised prices.

Criminal penalties are possible under the Sherman Act.

The government can regulate not just businesses,but also business competition and prices.

The Sherman Act focuses on:

The Sherman Act applies to:

Vertical mergers:

The Nature and Sources of Law

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