Question 1

Section 3 of the Clayton Act was designed to attack:

Accepted Answer

A)  licensing arrangements. 
B)  exclusive dealing contracts. 
C)  aleatory contracts. 
D)  adhesion contracts. 
A)  licensing arrangements. 
B)  exclusive dealing contracts. 
C)  aleatory contracts. 
D)  adhesion contracts. B

Question 2

Horizontal price-fixing is always illegal.

Accepted Answer

A) True 
 B)False  True

Question 3

Describe Section 2 of the Sherman Act.

Accepted Answer

Section 2 of the Sherman Act provides "Every person who shall monopolize,or attempt to monopolize,or combine or conspire with any other person or persons to monopolize any part of trade or commerce among the several states,or with foreign nations shall be deemed guilty of a felony." It is important to note that Section 2 outlaws "monopolizing," not monopolies.In order to show a violation of Section 2,the government or private plaintiff must show not only that the defendant firm has monopoly power but also that there is an intent to monopolize on the defendant's part.Joint action is not necessary in order to violate Section 2; a single firm can be guilty of monopolizing or attempting to monopolize.

Question 4

Horizontal price-fixing:

Accepted Answer

A)  is also called resale price maintenance. 
B)  occurs when the manufacturer gets the retailer to agree to follow the suggested retail price. 
C)  can be legally justified if there was a direct agreement between competitors. 
D)  is an attempt by competitors to interfere with the market and control prices. 
A)  is also called resale price maintenance. 
B)  occurs when the manufacturer gets the retailer to agree to follow the suggested retail price. 
C)  can be legally justified if there was a direct agreement between competitors. 
D)  is an attempt by competitors to interfere with the market and control prices.

Question 5

The federal government's right to regulate business is derived from the _____ of the U.S.Constitution.

Accepted Answer

A)  Commerce Clause 
B)  Separation Clause 
C)  Due Process Clause 
D)  Renegade Clause 
A)  Commerce Clause 
B)  Separation Clause 
C)  Due Process Clause 
D)  Renegade Clause

Question 6

The functional interchangeability test helps to determine if:

Accepted Answer

A)  a firm controls a very high percentage share of the relevant market. 
B)  the defendant had an anticompetitive intent. 
C)  there has been joint action. 
D)  the plaintiff has standing to bring an antitrust suit. 
A)  a firm controls a very high percentage share of the relevant market. 
B)  the defendant had an anticompetitive intent. 
C)  there has been joint action. 
D)  the plaintiff has standing to bring an antitrust suit.

Question 7

The Noerr Doctrine prohibits people and businesses from joining together and lobbying governmental officials.

Accepted Answer

A) True 
 B)False

Question 8

Tie-in contracts occur when a seller refuses to sell a product to a buyer unless the buyer also purchases another product from the seller.

Accepted Answer

A) True 
 B)False

Question 9

The Foreign Trade Antitrust Improvement Act provides that the Sherman Act shall never apply to nonimport trade.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of a consignment agreement?

Accepted Answer

A)  If a manufacturer delivers all goods to its dealers on a consignment basis, the goods become the property of the dealer. 
B)  The owner of goods delivers them to another who is to act as the owner's agent in selling the goods. 
C)  If a manufacturer delivers all goods to its dealers on a consignment basis, the dealer cannot lawfully fix the price of those goods. 
D)  It is always held to be joint action. 
A)  If a manufacturer delivers all goods to its dealers on a consignment basis, the goods become the property of the dealer. 
B)  The owner of goods delivers them to another who is to act as the owner's agent in selling the goods. 
C)  If a manufacturer delivers all goods to its dealers on a consignment basis, the dealer cannot lawfully fix the price of those goods. 
D)  It is always held to be joint action.

Question 11

Section 1 of the Sherman Act applies to _____.

Accepted Answer

A)  unilateral actions 
B)  joint actions 
C)  nonimport trade 
D)  mergers 
A)  unilateral actions 
B)  joint actions 
C)  nonimport trade 
D)  mergers

Question 12

A candy company merging with a greeting cards company is a:

Accepted Answer

A)  vertical merger. 
B)  conglomerate merger. 
C)  product-extension merger. 
D)  market-extension merger. 
A)  vertical merger. 
B)  conglomerate merger. 
C)  product-extension merger. 
D)  market-extension merger.

Question 13

When a manufacturer sells goods to retail outlets and suggests a retail price,there is no violation of Section 1 of the Sherman Act because there is no:

Accepted Answer

A)  merger of any type. 
B)  contract, combination, or conspiracy to fix the price. 
C)  indication of an intent to monopolize. 
D)  exclusive dealing contract. 
A)  merger of any type. 
B)  contract, combination, or conspiracy to fix the price. 
C)  indication of an intent to monopolize. 
D)  exclusive dealing contract.

Question 14

Conglomerate mergers that create a potential for reciprocal dealing have been successfully challenged under:

Accepted Answer

A)  Section 3 of the Clayton Act. 
B)  Section 2 of the Sherman Act. 
C)  Section 7 of the Clayton Act. 
D)  Section 2(a) of the Robinson-Patman Act. 
A)  Section 3 of the Clayton Act. 
B)  Section 2 of the Sherman Act. 
C)  Section 7 of the Clayton Act. 
D)  Section 2(a) of the Robinson-Patman Act.

Question 15

The _____ provides that the Sherman Act shall not apply to nonimport trade unless the conduct has a direct,substantial,and reasonably foreseeable effect on trade or commerce within the United States,on the U.S.import trade,or on the activities of U.S.exporters.

Accepted Answer

A)  Robinson-Patman Act 
B)  Clayton Act 
C)  Noerr Doctrine 
D)  Foreign Trade Antitrust Improvement Act 
A)  Robinson-Patman Act 
B)  Clayton Act 
C)  Noerr Doctrine 
D)  Foreign Trade Antitrust Improvement Act

Question 16

When a manufacturer gets a retailer to agree to follow his suggested price,the agreement does not involve joint action.

Accepted Answer

A) True 
 B)False

Question 17

Tie-in contracts may also violate:

Accepted Answer

A)  Section 1 of the Sherman Act. 
B)  Section 2 of the Sherman Act. 
C)  Section 7 of the Clayton Act. 
D)  Section 2(a) of the Robinson-Patman Act. 
A)  Section 1 of the Sherman Act. 
B)  Section 2 of the Sherman Act. 
C)  Section 7 of the Clayton Act. 
D)  Section 2(a) of the Robinson-Patman Act.

Question 18

Under no circumstances can a single firm lawfully refuse to deal with firms or agree to deal only on certain terms.

Accepted Answer

A) True 
 B)False

Question 19

Describe defenses to direct price discrimination under the Robinson-Patman Act.

Accepted Answer

A seller who can cost justify discrimina

Question 20

Auro Inc.,a manufacturer of lawn mowers,sells a lawn mower model both to retail chain Streetmart and to standalone store Lawnworks in the town of Bayside.Auro sells the model to Streetmart at $5 less per unit than it sells to Lawnworks as Streetmart buys more mowers.Streetmart's retail prices are therefore lower than those of Lawnworks.Which of the following statements is true of this case?

Accepted Answer

A)  Auro is in violation of Section 2(a) of the Robinson-Patman Act. 
B)  Auro is in violation of the provisions of the Parker Doctrine. 
C)  Auro is in violation of the Noerr Doctrine. 
D)  Auro is in violation of Section 3 of the Clayton Act. 
A)  Auro is in violation of Section 2(a) of the Robinson-Patman Act. 
B)  Auro is in violation of the provisions of the Parker Doctrine. 
C)  Auro is in violation of the Noerr Doctrine. 
D)  Auro is in violation of Section 3 of the Clayton Act.

Exam 45: The Antitrust Laws

Section 3 of the Clayton Act was designed to attack:

Horizontal price-fixing is always illegal.

Describe Section 2 of the Sherman Act.

Horizontal price-fixing:

The federal government's right to regulate business is derived from the _____ of the U.S.Constitution.

The functional interchangeability test helps to determine if:

The Noerr Doctrine prohibits people and businesses from joining together and lobbying governmental officials.

Tie-in contracts occur when a seller refuses to sell a product to a buyer unless the buyer also purchases another product from the seller.

The Foreign Trade Antitrust Improvement Act provides that the Sherman Act shall never apply to nonimport trade.

Which of the following is true of a consignment agreement?

Section 1 of the Sherman Act applies to _____.

A candy company merging with a greeting cards company is a:

When a manufacturer sells goods to retail outlets and suggests a retail price,there is no violation of Section 1 of the Sherman Act because there is no:

Conglomerate mergers that create a potential for reciprocal dealing have been successfully challenged under:

The _____ provides that the Sherman Act shall not apply to nonimport trade unless the conduct has a direct,substantial,and reasonably foreseeable effect on trade or commerce within the United States,on the U.S.import trade,or on the activities of U.S.exporters.

When a manufacturer gets a retailer to agree to follow his suggested price,the agreement does not involve joint action.

Tie-in contracts may also violate:

Under no circumstances can a single firm lawfully refuse to deal with firms or agree to deal only on certain terms.

Describe defenses to direct price discrimination under the Robinson-Patman Act.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

Consumer Protection Laws

Environmental Regulation

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