Question 1

The Clayton Act was passed to supplement the Sherman Act by attacking specific practices that monopolists had historically followed to gain monopoly power.

Accepted Answer

A) True 
 B)False

Question 2

Describe the type of behavior Section 3 of the Clayton Act is designed to attack.

Accepted Answer

Section 3 of the Clayton Act is designed

Question 3

As the Clayton Act deals with probable harms to competition,there is criminal liability for Clayton Act violations.

Accepted Answer

A) True 
 B)False

Question 4

The Parker Doctrine is often referred to as the state action exemption.

Accepted Answer

A) True 
 B)False

Question 5

The purpose of U.S.antitrust law is to encourage and protect competition.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true of Section 2 of the Sherman Act?

Accepted Answer

A)  Joint action is necessary in order to violate Section 2. 
B)  Section 2 does not outlaw monopolies. 
C)  In order to show a violation of Section 2, the government or a private plaintiff must not show that the defendant firm has monopoly power. 
D)  Section 2 outlaws contracts, combinations, and conspiracies. 
A)  Joint action is necessary in order to violate Section 2. 
B)  Section 2 does not outlaw monopolies. 
C)  In order to show a violation of Section 2, the government or a private plaintiff must not show that the defendant firm has monopoly power. 
D)  Section 2 outlaws contracts, combinations, and conspiracies.

Question 7

Section 3 of the Clayton Act applies to:

Accepted Answer

A)  service contracts. 
B)  true consignments. 
C)  anticompetitive behavior. 
D)  formal agreements only. 
A)  service contracts. 
B)  true consignments. 
C)  anticompetitive behavior. 
D)  formal agreements only.

Question 8

Full rule of reason analysis:

Accepted Answer

A)  cannot be determined until after a court conducts a thorough market analysis. 
B)  is a "quick look" form of rule of reason analysis. 
C)  applies to restraints that are facially illegal like per se restraints. 
D)  is utilized for restraints that have an obvious adverse impact on competition. 
A)  cannot be determined until after a court conducts a thorough market analysis. 
B)  is a "quick look" form of rule of reason analysis. 
C)  applies to restraints that are facially illegal like per se restraints. 
D)  is utilized for restraints that have an obvious adverse impact on competition.

Question 9

Tie-in contracts:

Accepted Answer

A)  do not violate Section 3 of the Clayton Act regardless of the seller having monopoly power in the tie-in product. 
B)  do not violate Section 1 of the Sherman Act under any circumstance. 
C)  violate Section 3 of the Clayton Act if the seller has foreclosed competitors from a substantial volume of commerce in the tied product. 
D)  violate Section 7 of the Clayton Act if they violate Section 1 of the Sherman Act. 
A)  do not violate Section 3 of the Clayton Act regardless of the seller having monopoly power in the tie-in product. 
B)  do not violate Section 1 of the Sherman Act under any circumstance. 
C)  violate Section 3 of the Clayton Act if the seller has foreclosed competitors from a substantial volume of commerce in the tied product. 
D)  violate Section 7 of the Clayton Act if they violate Section 1 of the Sherman Act.

Question 10

Describe the Hart-Scott-Rodino Antitrust Improvements Act.

Accepted Answer

Proposed mergers or acquisitions affecti

Question 11

Federal antitrust laws apply to:

Accepted Answer

A)  intrastate commerce exclusively. 
B)  behavior that substantially affects interstate commerce or international trade. 
C)  behavior that affects external economies other than the U.S. 
D)  any type of nonimport trade. 
A)  intrastate commerce exclusively. 
B)  behavior that substantially affects interstate commerce or international trade. 
C)  behavior that affects external economies other than the U.S. 
D)  any type of nonimport trade.

Question 12

An oil producer's merger with an oil refiner is an example of a _____.

Accepted Answer

A)  conglomerate merger 
B)  push down merger 
C)  horizontal merger 
D)  vertical merger 
A)  conglomerate merger 
B)  push down merger 
C)  horizontal merger 
D)  vertical merger

Question 13

A restaurant called Habib's agrees to buy all the groceries it needs from Rida Supermarket.Which of the following contracts is created in this case?

Accepted Answer

A)  Requirements contract 
B)  Tie-in contract 
C)  Exclusive dealing contract 
D)  Adhesion contract 
A)  Requirements contract 
B)  Tie-in contract 
C)  Exclusive dealing contract 
D)  Adhesion contract

Question 14

Which of the following is true of joint ventures?

Accepted Answer

A)  They are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution. 
B)  They directly violate Section 2 of the Sherman Act. 
C)  They do not violate Section 1 of the Sherman Act as they involve cooperation between actual or potential competitors. 
D)  They refer to the acquisition of one company by the other. 
A)  They are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution. 
B)  They directly violate Section 2 of the Sherman Act. 
C)  They do not violate Section 1 of the Sherman Act as they involve cooperation between actual or potential competitors. 
D)  They refer to the acquisition of one company by the other.

Question 15

Acts classified as per se illegal are presumed to be illegal.

Accepted Answer

A) True 
 B)False

Question 16

The abbreviated rule of reason analysis applies to restraints:

Accepted Answer

A)  in which the overall reasonableness cannot be ascertained without a thorough examination of their pernicious and beneficial effects in the relevant markets. 
B)  that have an obvious adverse impact on competition, but whose overall reasonableness cannot be immediately ascertained. 
C)  that require thorough inquiry into the anticompetitive effects because the effects are not obvious. 
D)  that deserve a per se treatment because of their obvious unreasonableness. 
A)  in which the overall reasonableness cannot be ascertained without a thorough examination of their pernicious and beneficial effects in the relevant markets. 
B)  that have an obvious adverse impact on competition, but whose overall reasonableness cannot be immediately ascertained. 
C)  that require thorough inquiry into the anticompetitive effects because the effects are not obvious. 
D)  that deserve a per se treatment because of their obvious unreasonableness.

Question 17

If a distributor persuades a manufacturer to refuse to deal with a rival distributor,the two parties:

Accepted Answer

A)  have committed a per se violation of Section 1 of the Sherman Act. 
B)  do not violate Section 1 of the Sherman Act since this is a unilateral action. 
C)  are conspiring to form a monopoly, thus directly violating Section 2 of the Sherman Act. 
D)  are attempting vertical price-fixing. 
A)  have committed a per se violation of Section 1 of the Sherman Act. 
B)  do not violate Section 1 of the Sherman Act since this is a unilateral action. 
C)  are conspiring to form a monopoly, thus directly violating Section 2 of the Sherman Act. 
D)  are attempting vertical price-fixing.

Question 18

Jekyll Inc.,a camera dealer,refuses to sell its cameras to customers unless they also agree to buy memory cards and other camera accessories from Jekyll.This scenario is an example of a(n)_____.

Accepted Answer

A)  requirements contract 
B)  tie-in contract 
C)  exclusive dealing contract 
D)  adhesion contract 
A)  requirements contract 
B)  tie-in contract 
C)  exclusive dealing contract 
D)  adhesion contract

Question 19

What is price-fixing?

Accepted Answer

Price-fixing is an attempt to interfere

Question 20

Unilateral actions,even if they have an anticompetitive effect,do not violate Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Exam 45: The Antitrust Laws

The Clayton Act was passed to supplement the Sherman Act by attacking specific practices that monopolists had historically followed to gain monopoly power.

Describe the type of behavior Section 3 of the Clayton Act is designed to attack.

As the Clayton Act deals with probable harms to competition,there is criminal liability for Clayton Act violations.

The Parker Doctrine is often referred to as the state action exemption.

The purpose of U.S.antitrust law is to encourage and protect competition.

Which of the following statements is true of Section 2 of the Sherman Act?

Section 3 of the Clayton Act applies to:

Full rule of reason analysis:

Tie-in contracts:

Describe the Hart-Scott-Rodino Antitrust Improvements Act.

Federal antitrust laws apply to:

An oil producer's merger with an oil refiner is an example of a _____.

A restaurant called Habib's agrees to buy all the groceries it needs from Rida Supermarket.Which of the following contracts is created in this case?

Which of the following is true of joint ventures?

Acts classified as per se illegal are presumed to be illegal.

The abbreviated rule of reason analysis applies to restraints:

If a distributor persuades a manufacturer to refuse to deal with a rival distributor,the two parties:

Jekyll Inc.,a camera dealer,refuses to sell its cameras to customers unless they also agree to buy memory cards and other camera accessories from Jekyll.This scenario is an example of a(n)_____.

What is price-fixing?

Unilateral actions,even if they have an anticompetitive effect,do not violate Section 1 of the Sherman 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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