Question 1

The Justice Department has expanded its enforcement policy of the Sherman Act to cover foreign companies' conduct that harms U.S.exports.

Accepted Answer

A) True 
 B)False  True

Question 2

An agreement between a manufacturer and a wholesaler is horizontal.

Accepted Answer

A) True 
 B)False  False

Question 3

The National Cooperative Research Act:

Accepted Answer

A) prohibits using the rule of reason test in judging joint ventures in research and development of new technology. 
B) is designed to clear up uncertainty about the legality of joint ventures. 
C) now requires treble damages if joint ventures are formed in violation of Section 1 of the Sherman Act. 
D) All of the above. 
A) prohibits using the rule of reason test in judging joint ventures in research and development of new technology. 
B) is designed to clear up uncertainty about the legality of joint ventures. 
C) now requires treble damages if joint ventures are formed in violation of Section 1 of the Sherman Act. 
D) All of the above. B

Question 4

If a small manufacturer of vacuum cleaners conditions the sales of its cleaners on the buyer's purchasing only that manufacturer's bags,under the Sherman Act this is:

Accepted Answer

A) illegal per se. 
B) a tying arrangement, which will be closely scrutinized by the law. 
C) a vertical customer restriction. 
D) no violation. 
A) illegal per se. 
B) a tying arrangement, which will be closely scrutinized by the law. 
C) a vertical customer restriction. 
D) no violation.

Question 5

The Leegin Creative Leather Products,Inc.v.PSKS,Inc.case held that:

Accepted Answer

A) vertical agreements establishing minimum resale prices should be judged by the rule of reason standard. 
B) vertical agreements establishing minimum resale prices are illegal per se. 
C) horizontal price fixing agreements must be evaluated by studying the reasonableness of the restraint in light of real market forces at work in the situation. 
D) if a seller can show it costs less to sell to a particular buyer, the seller may lawfully pass along the cost savings. 
A) vertical agreements establishing minimum resale prices should be judged by the rule of reason standard. 
B) vertical agreements establishing minimum resale prices are illegal per se. 
C) horizontal price fixing agreements must be evaluated by studying the reasonableness of the restraint in light of real market forces at work in the situation. 
D) if a seller can show it costs less to sell to a particular buyer, the seller may lawfully pass along the cost savings.

Question 6

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true in relation to market share and monopoly power?

Accepted Answer

A) A market share greater than 50% generally indicates monopoly power. 
B) A market share between 50 and 75% is, in itself, inconclusive in determining monopoly power. 
C) Market share is rarely used as a test of monopoly power because it is difficult to determine. 
D) Market share is a common test for monopoly power because it is an easy, objective measurement for courts to determine. 
A) A market share greater than 50% generally indicates monopoly power. 
B) A market share between 50 and 75% is, in itself, inconclusive in determining monopoly power. 
C) Market share is rarely used as a test of monopoly power because it is difficult to determine. 
D) Market share is a common test for monopoly power because it is an easy, objective measurement for courts to determine.

Question 8

Which of the following is correct regarding the Clayton Act?

Accepted Answer

A) It deals with price discrimination, tying contracts, and mergers. 
B) It added criminal sanctions to the Sherman Act. 
C) It repealed the Robinson-Patman Act. 
D) It included labor organizations in its coverage. 
A) It deals with price discrimination, tying contracts, and mergers. 
B) It added criminal sanctions to the Sherman Act. 
C) It repealed the Robinson-Patman Act. 
D) It included labor organizations in its coverage.

Question 9

Group boycotts are not prohibited by the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 10

Any violation of Section 2 of the Sherman Act constituting a conspiracy to monopolize would also constitute a violation of Section 1.

Accepted Answer

A) True 
 B)False

Question 11

With tying arrangements,the courts may establish a seller's economic power by showing that:

Accepted Answer

A) the seller occupied a dominant position in the tying market. 
B) the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C) a substantial number of customers have accepted the tying arrangement and the only explanation for their willingness to comply is the seller's economic power in the tying market. 
D) All of the above. 
E) (a) and (c), but not (b) 
A) the seller occupied a dominant position in the tying market. 
B) the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C) a substantial number of customers have accepted the tying arrangement and the only explanation for their willingness to comply is the seller's economic power in the tying market. 
D) All of the above. 
E) (a) and (c), but not (b)

Question 12

The 2010 Horizontal Merger Guidelines:

Accepted Answer

A) were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B) require a mechanical application; in order to reduce the previously used analytic framework, which was far too subjective and uncertain. 
C) rejects use of the Herfindahl-Hirschman Index. 
D) clarify that merger analysis does not use a single methodology. 
E) None of the above. 
A) were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B) require a mechanical application; in order to reduce the previously used analytic framework, which was far too subjective and uncertain. 
C) rejects use of the Herfindahl-Hirschman Index. 
D) clarify that merger analysis does not use a single methodology. 
E) None of the above.

Question 13

Under the Sherman Act,price fixing is the primary and most serious example of a per se violation.

Accepted Answer

A) True 
 B)False

Question 14

The Federal Trade Commission may issue a cease and desist order having the effect of an injunction.

Accepted Answer

A) True 
 B)False

Question 15

A form of business association organized to carry out a particular business enterprise is a:

Accepted Answer

A) sole proprietorship. 
B) tenancy in common. 
C) joint venture. 
D) competitor. 
A) sole proprietorship. 
B) tenancy in common. 
C) joint venture. 
D) competitor.

Question 16

What are the major functions of the Federal Trade Commission (FTC)and what power does the FTC have?

Accepted Answer

The Federal Trade Commission has two maj

Question 17

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller,this is known as a:

Accepted Answer

A) tying arrangement. 
B) boycott. 
C) horizontal restraint. 
D) disparagement. 
A) tying arrangement. 
B) boycott. 
C) horizontal restraint. 
D) disparagement.

Question 18

The definition of price-fixing includes agreements that may,among other things:

Accepted Answer

A) depress prices. 
B) stabilize prices. 
C) raise prices. 
D) All of the above. 
A) depress prices. 
B) stabilize prices. 
C) raise prices. 
D) All of the above.

Question 19

If a wholesale manufacturer gets a retail outlet for its goods through merger,this is a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 20

The Clayton Act exempts labor,agricultural,and horticultural organizations from all antitrust laws.

Accepted Answer

A) True 
 B)False

Exam 42: Antitrust

The Justice Department has expanded its enforcement policy of the Sherman Act to cover foreign companies' conduct that harms U.S.exports.

An agreement between a manufacturer and a wholesaler is horizontal.

The National Cooperative Research Act:

If a small manufacturer of vacuum cleaners conditions the sales of its cleaners on the buyer's purchasing only that manufacturer's bags,under the Sherman Act this is:

The Leegin Creative Leather Products,Inc.v.PSKS,Inc.case held that:

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Which of the following is true in relation to market share and monopoly power?

Which of the following is correct regarding the Clayton Act?

Group boycotts are not prohibited by the Sherman Act.

Any violation of Section 2 of the Sherman Act constituting a conspiracy to monopolize would also constitute a violation of Section 1.

With tying arrangements,the courts may establish a seller's economic power by showing that:

The 2010 Horizontal Merger Guidelines:

Under the Sherman Act,price fixing is the primary and most serious example of a per se violation.

The Federal Trade Commission may issue a cease and desist order having the effect of an injunction.

A form of business association organized to carry out a particular business enterprise is a:

What are the major functions of the Federal Trade Commission (FTC)and what power does the FTC have?

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller,this is known as a:

The definition of price-fixing includes agreements that may,among other things:

If a wholesale manufacturer gets a retail outlet for its goods through merger,this is a horizontal merger.

The Clayton Act exempts labor,agricultural,and horticultural organizations from all antitrust laws.

Introduction to Law

Business Ethics

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Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

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