Question 1

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Accepted Answer

A) True 
 B)False

Question 2

Section 1 of the Sherman Act does not prohibit concerted action.

Accepted Answer

A) True 
 B)False

Question 3

Like the Sherman Act,Section 3 of the Clayton Act applies only to practices involving commodities,not to those that involve services,intangibles,or land.

Accepted Answer

A) True 
 B)False

Question 4

All price discrimination is illegal under the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 5

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

Accepted Answer

A) this is per se illegal. 
B) there is no violation. 
C) this will be tested under the rule of reason. 
D) there is a tying arrangement. 
A) this is per se illegal. 
B) there is no violation. 
C) this will be tested under the rule of reason. 
D) there is a tying arrangement.

Question 6

Sarreno Cheese Co.supplies mozzarella cheese to pizza restaurants at $1.70 per pound.In order to snare the business of one large pizza chain,Sarreno offers to sell them cheese at $1.45 per pound.This will violate the Robinson-Patman Act unless:

Accepted Answer

A) the pizza chain can already get the cheese for $1.45 elsewhere. 
B) Sarreno can show its price is justified because of a cost savings based on quantity. 
C) Sarreno lowers the price to all its customers. 
D) Two of the above, (b) and (c). 
E) Any of the above. 
A) the pizza chain can already get the cheese for $1.45 elsewhere. 
B) Sarreno can show its price is justified because of a cost savings based on quantity. 
C) Sarreno lowers the price to all its customers. 
D) Two of the above, (b) and (c). 
E) Any of the above.

Question 7

The courts have interpreted the Sherman Act as prohibiting contracts that unreasonably restrain trade.

Accepted Answer

A) True 
 B)False

Question 8

Under the 2004 amendments,corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Accepted Answer

A) True 
 B)False

Question 9

W & W,Inc.manufactures and sells widgets.It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers.Does Marklin have liability for price discrimination? Does W & W,Inc.have liability for price discrimination?

Accepted Answer

W & W,Inc.,if its action substantially l

Question 10

The National Cooperative Research Act provides that:

Accepted Answer

A) joint ventures in the research and development of new technology are to be judged under the rule of reason test. 
B) treble damages apply to all joint ventures formed in violation of the antitrust laws. 
C) joint venture participants must under all circumstances report their intent to the Justice Department. 
D) joint ventures formed to divide markets and fix prices are not illegal. 
A) joint ventures in the research and development of new technology are to be judged under the rule of reason test. 
B) treble damages apply to all joint ventures formed in violation of the antitrust laws. 
C) joint venture participants must under all circumstances report their intent to the Justice Department. 
D) joint ventures formed to divide markets and fix prices are not illegal.

Question 11

A restraint of trade may be classified as either horizontal or vertical.

Accepted Answer

A) True 
 B)False

Question 12

If all milk producers in the area agree to set a minimum price for raw milk,this would be an example of:

Accepted Answer

A) horizontal allocation. 
B) vertical market restraint. 
C) horizontal price fixing. 
D) a tying arrangement. 
A) horizontal allocation. 
B) vertical market restraint. 
C) horizontal price fixing. 
D) a tying arrangement.

Question 13

The Clayton Act deals with which of the following situations?

Accepted Answer

A) Supply discrimination. 
B) Tying contracts and mergers. 
C) Interlocking ties. 
D) Monopoly conspiracies. 
A) Supply discrimination. 
B) Tying contracts and mergers. 
C) Interlocking ties. 
D) Monopoly conspiracies.

Question 14

Characterizing a type of restraint as per se illegal significantly affects the prosecution of an antitrust suit.

Accepted Answer

A) True 
 B)False

Question 15

Regarding Section 2 of the Sherman Act,the standard test applied by the courts requires proof of a specific intent to monopolize plus a dangerous probability of success; however,this test neither defines "intent" nor gives a standard of power by which to measure "success."

Accepted Answer

A) True 
 B)False

Question 16

If United Widgets lowers its price to all buyers of 10 or more widgets because it costs United less to sell that quantity,it is not a violation of the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 17

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

Accepted Answer

A) True 
 B)False

Question 18

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:

Accepted Answer

A) 	a per se price fixing violation of the Sherman Act. 
B) 	not a violation of the Sherman Act, because it has been made by a professional association. 
C) 	not a violation of the Sherman Act, because a fee is different from a price. 
D) 	subject to the rule of reason. 
A) 	a per se price fixing violation of the Sherman Act. 
B) 	not a violation of the Sherman Act, because it has been made by a professional association. 
C) 	not a violation of the Sherman Act, because a fee is different from a price. 
D) 	subject to the rule of reason.

Question 19

All tying arrangements are per se illegal.

Accepted Answer

A) True 
 B)False

Question 20

The principal objective of antitrust law governing mergers is to maintain competition.

Accepted Answer

A) True 
 B)False

Exam 42: Antitrust

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Section 1 of the Sherman Act does not prohibit concerted action.

Like the Sherman Act,Section 3 of the Clayton Act applies only to practices involving commodities,not to those that involve services,intangibles,or land.

All price discrimination is illegal under the Robinson-Patman Act.

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

Sarreno Cheese Co.supplies mozzarella cheese to pizza restaurants at $1.70 per pound.In order to snare the business of one large pizza chain,Sarreno offers to sell them cheese at $1.45 per pound.This will violate the Robinson-Patman Act unless:

The courts have interpreted the Sherman Act as prohibiting contracts that unreasonably restrain trade.

Under the 2004 amendments,corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

W & W,Inc.manufactures and sells widgets.It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers.Does Marklin have liability for price discrimination? Does W & W,Inc.have liability for price discrimination?

The National Cooperative Research Act provides that:

A restraint of trade may be classified as either horizontal or vertical.

If all milk producers in the area agree to set a minimum price for raw milk,this would be an example of:

The Clayton Act deals with which of the following situations?

Characterizing a type of restraint as per se illegal significantly affects the prosecution of an antitrust suit.

Regarding Section 2 of the Sherman Act,the standard test applied by the courts requires proof of a specific intent to monopolize plus a dangerous probability of success; however,this test neither defines "intent" nor gives a standard of power by which to measure "success."

If United Widgets lowers its price to all buyers of 10 or more widgets because it costs United less to sell that quantity,it is not a violation of the Robinson-Patman Act.

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:

All tying arrangements are per se illegal.

The principal objective of antitrust law governing mergers is to maintain competition.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

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Employment Law

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Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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