Question 1

The Robinson-Patman Act outlawed secondary and tertiary price discrimination.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following requires a buyer to purchase one product from a seller as a condition of purchasing another product from the same seller,therefore preventing the buyer from purchasing the latter product from the seller's competitors?

Accepted Answer

A) Tying agreement 
B) Price fixing agreement 
C) Exclusive dealing agreements 
D) Market sharing agreement 
A) Tying agreement 
B) Price fixing agreement 
C) Exclusive dealing agreements 
D) Market sharing agreement

Question 3

The Robinson-Patman Act applies if a Texas manufacturer discriminated as to the sales price to two Texas customers.

Accepted Answer

A) True 
 B)False

Question 4

Soundco,Inc. ,a leading manufacturer of stereo equipment,sells equipment to both wholesalers and retailers.Soundco regularly charges wholesalers less than it charges retailers for the same equipment.Contending that this pricing practice violated the Robinson-Patman Act,various retailers have sued Soundco.What should Soundco argue in an effort to avoid liability?

Accepted Answer

Soundco should argue that in charging lo

Question 5

What needs to be shown for most Clayton Act violations?

Accepted Answer

A) Only a probability of any anticompetitive effect 
B) A strong probability of a significant anticompetitive effect 
C) A strong probability of any anticompetitive effect 
D) Only a probability of a significant anticompetitive effect 
A) Only a probability of any anticompetitive effect 
B) A strong probability of a significant anticompetitive effect 
C) A strong probability of any anticompetitive effect 
D) Only a probability of a significant anticompetitive effect

Question 6

Which of the following statements about agricultural cooperatives exemption under the Clayton Act and the Capper-Volstead Act is true?

Accepted Answer

A) Courts have broadly construed the agricultural cooperative exemption. 
B) The agricultural cooperative exemption extends to all collective marketing activities. 
C) The agricultural cooperative exemption does not legitimize coercive practices that are unnecessary to accomplish lawful cooperative goals. 
D) Agricultural cooperatives that include members not engaged in the production of agricultural commodities have been granted exempt status. 
A) Courts have broadly construed the agricultural cooperative exemption. 
B) The agricultural cooperative exemption extends to all collective marketing activities. 
C) The agricultural cooperative exemption does not legitimize coercive practices that are unnecessary to accomplish lawful cooperative goals. 
D) Agricultural cooperatives that include members not engaged in the production of agricultural commodities have been granted exempt status.

Question 7

Which of the following is a market share factor that federal regulators consider when determining the legality of horizontal mergers?

Accepted Answer

A) The probability of increasing concentration in the relevant market. 
B) The prior conduct of both the acquiring firm and the acquired firm. 
C) The existence of barriers to the entry of new competitors into the relevant market. 
D) The probable future competitive strength of the acquired firm. 
A) The probability of increasing concentration in the relevant market. 
B) The prior conduct of both the acquiring firm and the acquired firm. 
C) The existence of barriers to the entry of new competitors into the relevant market. 
D) The probable future competitive strength of the acquired firm.

Question 8

Which Section of The Clayton Act originally prohibited local and territorial price discrimination by sellers?

Accepted Answer

A) Section 2 
B) Section 3 
C) Section 7 
D) Section 8 
A) Section 2 
B) Section 3 
C) Section 7 
D) Section 8

Question 9

Bunyan Corp.has patented a revolutionary chainsaw.To maximize the revenues from its patent and recover its research and development expenses,Bunyan requires other manufacturers that make the chainsaw under license from Bunyan to adhere to a minimum price schedule.Bunyan also requires its retail dealers to adhere to a minimum resale price schedule.The Justice Department has challenged Bunyan's marketing practices as unlawful.Is the challenge valid? Explain your reasoning.

Accepted Answer

The Justice Department's challenge is pa

Question 10

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

Accepted Answer

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

Question 11

There is/are no ________ for violating the provisions of the Clayton Act.

Accepted Answer

A) injunctive relief 
B) treble damages 
C) cease-and-desist orders 
D) criminal penalties 
A) injunctive relief 
B) treble damages 
C) cease-and-desist orders 
D) criminal penalties

Question 12

Which of the following is used to describe the acquisition of one company by another?

Accepted Answer

A) Monopoly 
B) Merger 
C) Dissolution 
D) Tying 
A) Monopoly 
B) Merger 
C) Dissolution 
D) Tying

Question 13

Reliable Corp.owns the nationwide chain of Reliable Auto Repair shops.Although Reliable has the single largest share in the nationwide auto repair market,the intensely competitive nature of this market means that Reliable's share is only 8 percent.In a lawsuit filed against Reliable,the plaintiff alleges that Reliable regularly agrees to provide automobile repairs only if the customer whose car needs repairs also agrees to purchase a certain paste wax manufactured by Reliable.The plaintiff asserts that this practice violates Section 3 of the Clayton Act.Which of the following is the strongest argument for Reliable to avoid liability?

Accepted Answer

A) That Reliable does not possess sufficient auto repair market power to appreciably restrain competition in the paste wax market. 
B) That most of its customers need to buy paste wax anyway. 
C) That auto repairs are not a commodity. 
D) That Reliable's competitors in the sale of paste wax are doing quite well,regardless of how much paste wax Reliable may sell in this manner. 
A) That Reliable does not possess sufficient auto repair market power to appreciably restrain competition in the paste wax market. 
B) That most of its customers need to buy paste wax anyway. 
C) That auto repairs are not a commodity. 
D) That Reliable's competitors in the sale of paste wax are doing quite well,regardless of how much paste wax Reliable may sell in this manner.

Question 14

________ of the Robinson-Patman Act makes it illegal for a buyer knowingly to induce or receive a discriminatory price in violation of Section 2(a)of the Robinson-Patman Act.

Accepted Answer

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

Question 15

As stated in the text and mentioned in North Carolina State Board of Dental Examiners v.Federal Trade Commission,the state action exemption was developed in:

Accepted Answer

A) Parker v.Brown 
B) Standard Oil Co.v.United States 
C) Union Labor Life Insurance Co.v.Pireno 
D) Federal Trade Commission v.Staples,Inc. 
A) Parker v.Brown 
B) Standard Oil Co.v.United States 
C) Union Labor Life Insurance Co.v.Pireno 
D) Federal Trade Commission v.Staples,Inc.

Question 16

The Noerr-Pennington doctrine provides an exception to the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 17

Which types of mergers have traditionally been subject to the greatest degree of scrutiny under the Clayton Act?

Accepted Answer

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

Question 18

The Robinson-Patman Act applies to discriminatory acts that occur in trade and commerce.

Accepted Answer

A) True 
 B)False

Question 19

The ________ provides that an American court cannot adjudicate a politically sensitive dispute whose resolution would require the court to judge the legality of a foreign government's sovereign act.

Accepted Answer

A) state action doctrine 
B) sovereign compulsion doctrine 
C) doctrine of sovereign immunity 
D) act of state doctrine 
A) state action doctrine 
B) sovereign compulsion doctrine 
C) doctrine of sovereign immunity 
D) act of state doctrine

Question 20

When large chain stores use their buying power to induce manufacturers to sell to them at prices lower than those offered to their smaller,independent competitors,this type of price discrimination is classified as:

Accepted Answer

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

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

The Robinson-Patman Act outlawed secondary and tertiary price discrimination.

Which of the following requires a buyer to purchase one product from a seller as a condition of purchasing another product from the same seller,therefore preventing the buyer from purchasing the latter product from the seller's competitors?

The Robinson-Patman Act applies if a Texas manufacturer discriminated as to the sales price to two Texas customers.

What needs to be shown for most Clayton Act violations?

Which of the following statements about agricultural cooperatives exemption under the Clayton Act and the Capper-Volstead Act is true?

Which of the following is a market share factor that federal regulators consider when determining the legality of horizontal mergers?

Which Section of The Clayton Act originally prohibited local and territorial price discrimination by sellers?

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

There is/are no ________ for violating the provisions of the Clayton Act.

Which of the following is used to describe the acquisition of one company by another?

________ of the Robinson-Patman Act makes it illegal for a buyer knowingly to induce or receive a discriminatory price in violation of Section 2(a)of the Robinson-Patman Act.

As stated in the text and mentioned in North Carolina State Board of Dental Examiners v.Federal Trade Commission,the state action exemption was developed in:

The Noerr-Pennington doctrine provides an exception to the Clayton Act.

Which types of mergers have traditionally been subject to the greatest degree of scrutiny under the Clayton Act?

The Robinson-Patman Act applies to discriminatory acts that occur in trade and commerce.

The ________ provides that an American court cannot adjudicate a politically sensitive dispute whose resolution would require the court to judge the legality of a foreign government's sovereign act.

When large chain stores use their buying power to induce manufacturers to sell to them at prices lower than those offered to their smaller,independent competitors,this type of price discrimination is classified as:

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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