Question 1

Section 1 of the Sherman Act outlaws monopolies and attempts to monopolize.

Accepted Answer

A) True 
 B)False

Question 2

To find a violation of Section 2 of the Sherman Act,if sufficient monopoly power has been proved,the law must then show that the firm has engaged in unfair conduct.

Accepted Answer

A) True 
 B)False

Question 3

Three of the airline companies agree that they will not go any lower than $100 each way for coast-to-coast tickets.This is:

Accepted Answer

A) vertical price maintenance. 
B) a horizontal group boycott. 
C) vertical market allocation. 
D) horizontal price fixing. 
A) vertical price maintenance. 
B) a horizontal group boycott. 
C) vertical market allocation. 
D) horizontal price fixing.

Question 4

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Accepted Answer

A) True 
 B)False

Question 5

In the case of Eastman Kodak Co.v.Image Technical Services,Inc.the U.S.Supreme Court identified the exact conduct,beyond mere possession of monopoly power,which violates Section 2 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 6

Section 2 of the Sherman Act prohibits contracts,combinations,and conspiracies that restrain trade.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following remedies is available under the Sherman Act?

Accepted Answer

A) Injunctions. 
B) Consequential damages. 
C) Restitution. 
D) None of the above. 
A) Injunctions. 
B) Consequential damages. 
C) Restitution. 
D) None of the above.

Question 8

It is per se illegal under the Sherman Act for sellers to agree to a maximum price,but not a minimum price.

Accepted Answer

A) True 
 B)False

Question 9

In an attempt to limit the power of large purchasers,Congress amended Section 2 of the Clayton Act in 1936 by adopting the:

Accepted Answer

A) Sherman Act. 
B) Federal Trade Commission Act. 
C) Robinson-Patman Act. 
D) All of the above. 
A) Sherman Act. 
B) Federal Trade Commission Act. 
C) Robinson-Patman Act. 
D) All of the above.

Question 10

In enacting Section 2 of the Clayton Act,Congress was concerned with sellers who sought to harm or eliminate their competitors through:

Accepted Answer

A) mergers. 
B) price discrimination. 
C) tying arrangements. 
D) None of the above. 
A) mergers. 
B) price discrimination. 
C) tying arrangements. 
D) None of the above.

Question 11

A restraint involving collaboration among competitors at the same level in the chain of distribution is:

Accepted Answer

A) a vertical restraint. 
B) a horizontal restraint. 
C) price fixing. 
D) a trust. 
A) a vertical restraint. 
B) a horizontal restraint. 
C) price fixing. 
D) a trust.

Question 12

The Robinson-Patman Act adds to the Clayton Act merger provisions.

Accepted Answer

A) True 
 B)False

Question 13

Agreements by which the seller or lessor of a product conditions the agreement upon the buyer's or lessee's promise not to deal in a competitor's goods are:

Accepted Answer

A) tying arrangements. 
B) exclusive dealing arrangements. 
C) attempts to monopolize. 
D) None of the above. 
A) tying arrangements. 
B) exclusive dealing arrangements. 
C) attempts to monopolize. 
D) None of the above.

Question 14

The concerted action requirement of the Sherman Act Section 1:

Accepted Answer

A) may be established by an express agreement. 
B) is not met when a parent corporation and its wholly owned subsidiaries agree to a restraint in trade. 
C) requires factors, additional to conscious parallelism, such as identical sealed bids from each competitor. 
D) All of the above 
A) may be established by an express agreement. 
B) is not met when a parent corporation and its wholly owned subsidiaries agree to a restraint in trade. 
C) requires factors, additional to conscious parallelism, such as identical sealed bids from each competitor. 
D) All of the above

Question 15

Under the Clayton Act,private parties can bring civil actions in federal court for treble damages and attorneys' fees.

Accepted Answer

A) True 
 B)False

Question 16

Masson Supply sells hinges to retail outlets for $1.20.If Rorsch Ltd.approaches Strunk Hardware,one of Masson's customers,and offers to sell a comparable hinge for $1.10:

Accepted Answer

A) Masson may, without violating the Robinson-Patman Act, lower its price to Strunk to $1.10, and Masson need not lower its price to its other customers. 
B) Masson may not lower its price to Strunk to $1.10 unless it lowers its price to its other customers or it will violate the Robinson-Patman Act. 
C) Masson may lower its price to Strunk to $1.05 in order to keep Strunk's business, even if Masson does not lower the price to its other customers, without violating the Robinson-Patman Act. 
D) Masson may lower its price to Strunk without also lowering its price to Masson's other customers in order to allow Strunk to meet a lower price Strunk's competitor charges when selling Rorsch's hinges. 
E) Both (c) and (d). 
A) Masson may, without violating the Robinson-Patman Act, lower its price to Strunk to $1.10, and Masson need not lower its price to its other customers. 
B) Masson may not lower its price to Strunk to $1.10 unless it lowers its price to its other customers or it will violate the Robinson-Patman Act. 
C) Masson may lower its price to Strunk to $1.05 in order to keep Strunk's business, even if Masson does not lower the price to its other customers, without violating the Robinson-Patman Act. 
D) Masson may lower its price to Strunk without also lowering its price to Masson's other customers in order to allow Strunk to meet a lower price Strunk's competitor charges when selling Rorsch's hinges. 
E) Both (c) and (d).

Question 17

The National Cooperative Research Act was passed to facilitate the use of joint ventures for joint research and development.

Accepted Answer

A) True 
 B)False

Question 18

Harry Jones at Jones Brothers Furniture Co.does not like the Brite Lamp Co.representative,so he decided that Jones Brothers would boycott Brite.Under the Sherman Act,this is:

Accepted Answer

A) per se illegal. 
B) no violation. 
C) a tying arrangement. 
D) vertical market allocation. 
A) per se illegal. 
B) no violation. 
C) a tying arrangement. 
D) vertical market allocation.

Question 19

Monopoly power is tested by determining how big the corporation is in terms of total assets.

Accepted Answer

A) True 
 B)False

Question 20

To determine "market share" requires knowledge of which of the following?

Accepted Answer

A) What other products are substitutable for the product. 
B) Where the product is sold. 
C) How much of the product is sold. 
D) All of the above 
A) What other products are substitutable for the product. 
B) Where the product is sold. 
C) How much of the product is sold. 
D) All of the above

Exam 42: Antitrust

Section 1 of the Sherman Act outlaws monopolies and attempts to monopolize.

To find a violation of Section 2 of the Sherman Act,if sufficient monopoly power has been proved,the law must then show that the firm has engaged in unfair conduct.

Three of the airline companies agree that they will not go any lower than $100 each way for coast-to-coast tickets.This is:

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

In the case of Eastman Kodak Co.v.Image Technical Services,Inc.the U.S.Supreme Court identified the exact conduct,beyond mere possession of monopoly power,which violates Section 2 of the Sherman Act.

Section 2 of the Sherman Act prohibits contracts,combinations,and conspiracies that restrain trade.

Which of the following remedies is available under the Sherman Act?

It is per se illegal under the Sherman Act for sellers to agree to a maximum price,but not a minimum price.

In an attempt to limit the power of large purchasers,Congress amended Section 2 of the Clayton Act in 1936 by adopting the:

In enacting Section 2 of the Clayton Act,Congress was concerned with sellers who sought to harm or eliminate their competitors through:

A restraint involving collaboration among competitors at the same level in the chain of distribution is:

The Robinson-Patman Act adds to the Clayton Act merger provisions.

Agreements by which the seller or lessor of a product conditions the agreement upon the buyer's or lessee's promise not to deal in a competitor's goods are:

The concerted action requirement of the Sherman Act Section 1:

Under the Clayton Act,private parties can bring civil actions in federal court for treble damages and attorneys' fees.

Masson Supply sells hinges to retail outlets for $1.20.If Rorsch Ltd.approaches Strunk Hardware,one of Masson's customers,and offers to sell a comparable hinge for $1.10:

The National Cooperative Research Act was passed to facilitate the use of joint ventures for joint research and development.

Harry Jones at Jones Brothers Furniture Co.does not like the Brite Lamp Co.representative,so he decided that Jones Brothers would boycott Brite.Under the Sherman Act,this is:

Monopoly power is tested by determining how big the corporation is in terms of total assets.

To determine "market share" requires knowledge of which of the following?

Introduction to Law

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Intentional Torts

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