Question 1

Section 2(a)of the Robinson-Patman Act does not directly address the legality of:

Accepted Answer

A) functional discounts. 
B) partial payment discounts. 
C) quantity discounts. 
D) accumulation discounts. 
A) functional discounts. 
B) partial payment discounts. 
C) quantity discounts. 
D) accumulation discounts. A

Question 2

Section 2(b)of the Robinson-Patman Act allows a seller to price discriminate in certain geographic areas if the competition has a lower price.According to Section 2(b),what can the seller lower the price to?

Accepted Answer

A) To the same price as the competitor 
B) To any price that beats the competitor 
C) 10% discount off the list price of the seller 
D) 50% discount off the list price of the seller 
A) To the same price as the competitor 
B) To any price that beats the competitor 
C) 10% discount off the list price of the seller 
D) 50% discount off the list price of the seller A

Question 3

Mini Corp.and Huge,Inc.are competitors.Mini holds the single largest market share in the markets they compete in.Huge is third in terms of market share.Mini plans to acquire Huge.Which of the following,if true,would help bolster a conclusion that the acquisition is lawful under Section 7 of the Clayton Act?

Accepted Answer

A) That Mini has a history of acquiring ownership over competitors to increase its market share. 
B) That there are about 25 competitors other than Mini and Huge while there were only 10 competitors 10 years ago. 
C) That Mini has a 25 percent market share now and would only be increasing its market share by another 10 percent by acquiring Huge. 
D) That Huge is an aggressive firm and it has developed a plethora of patentable technologies in the last five years. 
A) That Mini has a history of acquiring ownership over competitors to increase its market share. 
B) That there are about 25 competitors other than Mini and Huge while there were only 10 competitors 10 years ago. 
C) That Mini has a 25 percent market share now and would only be increasing its market share by another 10 percent by acquiring Huge. 
D) That Huge is an aggressive firm and it has developed a plethora of patentable technologies in the last five years. B

Question 4

There are three major defenses to price discrimination under the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 5

Predatory Co. ,a large company entering a new geographic market,decided to eliminate its smaller rivals in the new market by selling below cost in that market (but not elsewhere)until the rivals were forced out of business.This type of price discrimination is classified as:

Accepted Answer

A) super-tertiary level discrimination. 
B) tertiary level discrimination. 
C) primary level discrimination. 
D) secondary level discrimination. 
A) super-tertiary level discrimination. 
B) tertiary level discrimination. 
C) primary level discrimination. 
D) secondary level discrimination.

Question 6

Which type of merger occurs between two firms that neither compete with each other nor have a supplier-consumer relationship with each other?

Accepted Answer

A) Conglomerate merger 
B) Vertical merger 
C) Horizontal merger 
D) Product-extension merger 
A) Conglomerate merger 
B) Vertical merger 
C) Horizontal merger 
D) Product-extension merger

Question 7

Technoco,Inc. ,a manufacturer of computers and related equipment,has been requiring wholesalers and retailers who purchase computers from it to also purchase printers as a condition of buying computers.One of Technoco's customers has challenged the legality of this practice.Which of the following factors would weigh against the illegality of this practice?

Accepted Answer

A) Evidence that Technoco's computers are generally considered to be inferior to those of its competitors 
B) Evidence that many other computer manufacturers will sell computers without requiring purchases of printers 
C) Evidence that Technoco is a small company whose total printer sales in the period in question amounted to $19,000 
D) Evidence that Technoco's computers are generally considered to be superior to those of its competitors 
A) Evidence that Technoco's computers are generally considered to be inferior to those of its competitors 
B) Evidence that many other computer manufacturers will sell computers without requiring purchases of printers 
C) Evidence that Technoco is a small company whose total printer sales in the period in question amounted to $19,000 
D) Evidence that Technoco's computers are generally considered to be superior to those of its competitors

Question 8

Bob and Evan both own tanning salons in Ridgemont,California.They form the "Slow Growth Society of Ridgemont" as a lobbying group to persuade Ridgemont City Council to pass a zoning ordinance that would effectively prohibit new personal services businesses such as tanning salons in Ridgemont.This is prohibited under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 9

One of the elements that must be demonstrated before a challenged tying agreement will be held to violate Section 3 of the Clayton Act is that:

Accepted Answer

A) the tying product was available for purchase without the agreement. 
B) the seller had substantial market power in the market for the tied product. 
C) the seller's tying arrangements restrained a "not insubstantial" volume of commerce in the tied product. 
D) the challenged agreement involved two integrated components of a larger product. 
A) the tying product was available for purchase without the agreement. 
B) the seller had substantial market power in the market for the tied product. 
C) the seller's tying arrangements restrained a "not insubstantial" volume of commerce in the tied product. 
D) the challenged agreement involved two integrated components of a larger product.

Question 10

Section 7 of the Clayton Act prohibits mergers of companies that would lessen competition in the market or create a monopoly.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an accurate statement about exclusive dealing agreements?

Accepted Answer

A) The qualitative substantiality test for gauging the legality of exclusive dealing agreements has prompted much criticism. 
B) Exclusive dealing agreements are unlawful even when they have minimal effect on competition or monopolization. 
C) The preventive nature of the Clayton Act does not allow it to cover exclusive dealing agreements. 
D) Historically,exclusive dealing agreements involving a "not insubstantial" amount of commerce have been declared illegal. 
A) The qualitative substantiality test for gauging the legality of exclusive dealing agreements has prompted much criticism. 
B) Exclusive dealing agreements are unlawful even when they have minimal effect on competition or monopolization. 
C) The preventive nature of the Clayton Act does not allow it to cover exclusive dealing agreements. 
D) Historically,exclusive dealing agreements involving a "not insubstantial" amount of commerce have been declared illegal.

Question 12

Which of the following statements about patent licensing is false?

Accepted Answer

A) Firms that seek to monopolize by acquiring most or all of the patents related to an area of commerce will not face liability for violating the Sherman and Clayton Acts. 
B) Patent holders cannot lawfully control the price at which patented items are resold by distributors purchasing them from the patent holder. 
C) Patent holders cannot use their patents to impose tying agreements that would be unlawful under the Sherman and Clayton Acts. 
D) The Supreme Court has recognized that an important part of holding a patent is the right to license others to manufacture the patented item. 
A) Firms that seek to monopolize by acquiring most or all of the patents related to an area of commerce will not face liability for violating the Sherman and Clayton Acts. 
B) Patent holders cannot lawfully control the price at which patented items are resold by distributors purchasing them from the patent holder. 
C) Patent holders cannot use their patents to impose tying agreements that would be unlawful under the Sherman and Clayton Acts. 
D) The Supreme Court has recognized that an important part of holding a patent is the right to license others to manufacture the patented item.

Question 13

In 1994,which Act did Congress envision as a vehicle for attacking practices that monopolists employed to acquire monopoly power?

Accepted Answer

A) Sherman Act 
B) Clayton Act 
C) Robinson-Patman Act 
D) Smith-Lever Act 
A) Sherman Act 
B) Clayton Act 
C) Robinson-Patman Act 
D) Smith-Lever Act

Question 14

The Foreign Sovereign Immunities Act (FSIA)provides that all commercial activities of foreign sovereigns and their agents are exempt from antitrust liability.

Accepted Answer

A) True 
 B)False

Question 15

There are no criminal penalties for violating the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 16

The qualitative substantiality test was employed by the Supreme Court in the landmark case of:

Accepted Answer

A) Tampa Electric Co.v.Nashville Coal Co. 
B) Standard Oil Co.v.United States 
C) Olin Corporation v.Federal Trade Commission 
D) Federal Trade Commission v.Staples,Inc. 
A) Tampa Electric Co.v.Nashville Coal Co. 
B) Standard Oil Co.v.United States 
C) Olin Corporation v.Federal Trade Commission 
D) Federal Trade Commission v.Staples,Inc.

Question 17

________ of the Robinson-Patman Act prevents large buyers,either directly or through subsidiary brokerage agents,from receiving phony commissions or brokerage payments from their suppliers.

Accepted Answer

A) Section 2(f) 
B) Section 2(c) 
C) Section 2(a) 
D) Section 2(e) 
A) Section 2(f) 
B) Section 2(c) 
C) Section 2(a) 
D) Section 2(e)

Question 18

The Justice Department and the Federal Trade Commission (FTC)share responsibility for enforcing the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 19

Mr.Blue and Mr.Yellow own all of the casinos in Delta City.Mr.Green wants to open a casino in Delta City but finds it too difficult to break into the market.Mr.Green sues Mr.Blue and Mr.Yellow for antitrust violation under the Clayton Act.What is the likely reason for the case being dismissed?

Accepted Answer

A) The Clayton Act does not deal with antitrust issues associated with real estate,services,or intangibles. 
B) The Clayton Act does not permit a plaintiff to sue two defendants. 
C) Gambling is a vice and as such cannot be litigated in the court system. 
D) The common law dictates that businesses cannot sue after failing to establish themselves in the commercial market. 
A) The Clayton Act does not deal with antitrust issues associated with real estate,services,or intangibles. 
B) The Clayton Act does not permit a plaintiff to sue two defendants. 
C) Gambling is a vice and as such cannot be litigated in the court system. 
D) The common law dictates that businesses cannot sue after failing to establish themselves in the commercial market.

Question 20

Ordinarily,a higher degree of proof of likely competitive injury is required in cases involving secondary level price discrimination.

Accepted Answer

A) True 
 B)False

Exam 50: The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Section 2(a)of the Robinson-Patman Act does not directly address the legality of:

Section 2(b)of the Robinson-Patman Act allows a seller to price discriminate in certain geographic areas if the competition has a lower price.According to Section 2(b),what can the seller lower the price to?

There are three major defenses to price discrimination under the Robinson-Patman Act.

Predatory Co. ,a large company entering a new geographic market,decided to eliminate its smaller rivals in the new market by selling below cost in that market (but not elsewhere)until the rivals were forced out of business.This type of price discrimination is classified as:

Which type of merger occurs between two firms that neither compete with each other nor have a supplier-consumer relationship with each other?

One of the elements that must be demonstrated before a challenged tying agreement will be held to violate Section 3 of the Clayton Act is that:

Section 7 of the Clayton Act prohibits mergers of companies that would lessen competition in the market or create a monopoly.

Which of the following is an accurate statement about exclusive dealing agreements?

Which of the following statements about patent licensing is false?

In 1994,which Act did Congress envision as a vehicle for attacking practices that monopolists employed to acquire monopoly power?

The Foreign Sovereign Immunities Act (FSIA)provides that all commercial activities of foreign sovereigns and their agents are exempt from antitrust liability.

There are no criminal penalties for violating the Clayton Act.

The qualitative substantiality test was employed by the Supreme Court in the landmark case of:

________ of the Robinson-Patman Act prevents large buyers,either directly or through subsidiary brokerage agents,from receiving phony commissions or brokerage payments from their suppliers.

The Justice Department and the Federal Trade Commission (FTC)share responsibility for enforcing the Clayton Act.

Mr.Blue and Mr.Yellow own all of the casinos in Delta City.Mr.Green wants to open a casino in Delta City but finds it too difficult to break into the market.Mr.Green sues Mr.Blue and Mr.Yellow for antitrust violation under the Clayton Act.What is the likely reason for the case being dismissed?

Ordinarily,a higher degree of proof of likely competitive injury is required in cases involving secondary level price discrimination.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

Employment Law

Environmental Regulation

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