Question 1

Only the Federal Trade Commission (FTC)can obtain an injunction under the FTC Act.

Accepted Answer

A) True 
 B)False

Question 2

The ________ requires certain firms to notify the Federal Trade Commission and the Justice Department in advance of a proposed merger and comply with a thirty-day waiting period before the merger is approved.

Accepted Answer

A)  Celler-Kefauver Act 
B)  Hart-Scott-Rodino Antitrust Improvement Act 
C)  Robinson-Patman Act 
D)  Sherman Act 
A)  Celler-Kefauver Act 
B)  Hart-Scott-Rodino Antitrust Improvement Act 
C)  Robinson-Patman Act 
D)  Sherman Act

Question 3

Price fixing includes stabilizing the price of a commodity or service.

Accepted Answer

A) True 
 B)False

Question 4

A relevant market is characterized by the presence of ________.

Accepted Answer

A)  unique goods and services 
B)  reasonably interchangeable goods and services 
C)  highly differentiated goods and services 
D)  pure monopoly of the defendant's goods and products 
A)  unique goods and services 
B)  reasonably interchangeable goods and services 
C)  highly differentiated goods and services 
D)  pure monopoly of the defendant's goods and products

Question 5

The four largest automobile manufacturers in a country each individually come to a decision to stop purchasing tires from a certain company.In accordance with the ________ doctrine,they cannot be charged with a violation of Section 1 of the Sherman Act.

Accepted Answer

A)  conscious parallelism 
B)  Noerr 
C)  Colgate 
D)  failing company 
A)  conscious parallelism 
B)  Noerr 
C)  Colgate 
D)  failing company

Question 6

________ are a series of laws enacted to specifically limit anticompetitive behavior and monopolistic practices in almost all industries,businesses,and professions operating in the United States.

Accepted Answer

A)  Contract laws 
B)  Antitrust laws 
C)  Laissez-faire laws 
D)  Canon laws 
A)  Contract laws 
B)  Antitrust laws 
C)  Laissez-faire laws 
D)  Canon laws

Question 7

What are tying arrangements? Explain with the help of an example.

Accepted Answer

Section 3 of the Clayton Act prohibits t

Question 8

The unfair advantage is intended to prevent wealthy companies from overwhelming the competition in a given market.

Accepted Answer

A) True 
 B)False

Question 9

A market extension merger is a merger between two companies in similar fields whose sales overlap.

Accepted Answer

A) True 
 B)False

Question 10

The FTC is exclusively empowered to enforce the FTC Act.

Accepted Answer

A) True 
 B)False

Question 11

The unfair advantage theory applies to ________ mergers.

Accepted Answer

A)  horizontal 
B)  market extension 
C)  conglomerate 
D)  vertical 
A)  horizontal 
B)  market extension 
C)  conglomerate 
D)  vertical

Question 12

Conscious parallelism is seen when ________.

Accepted Answer

A)  parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices 
B)  one party makes an independent choice not to deal with another 
C)  two or more firms act the same but no concerted action is shown 
D)  a party's anticompetitive effects outweigh their procompetitive effects 
A)  parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices 
B)  one party makes an independent choice not to deal with another 
C)  two or more firms act the same but no concerted action is shown 
D)  a party's anticompetitive effects outweigh their procompetitive effects

Question 13

Which of the following horizontal restraints of trade contains the element of monopoly?

Accepted Answer

A)  conscious parallelism 
B)  market sharing 
C)  group boycott 
D)  exchange of nonprice information 
A)  conscious parallelism 
B)  market sharing 
C)  group boycott 
D)  exchange of nonprice information

Question 14

The two tests the U.S.Supreme Court has developed for determining the lawfulness of a restraint under Section 1 of the Sherman Act are the rule of reason and the ________.

Accepted Answer

A)  Noerr doctrine 
B)  per se rule 
C)  nolo contendere rule 
D)  Colgate doctrine 
A)  Noerr doctrine 
B)  per se rule 
C)  nolo contendere rule 
D)  Colgate doctrine

Question 15

Price fixing ________.

Accepted Answer

A)  is a reasonable violation of Section 1 of the Sherman Act 
B)  is a process seen exclusively among sellers of goods and services 
C)  is permissible as it helps consumers or protects competitors from ruinous competition 
D)  also involves fixing the quantity of a product or service to be produced or provided 
A)  is a reasonable violation of Section 1 of the Sherman Act 
B)  is a process seen exclusively among sellers of goods and services 
C)  is permissible as it helps consumers or protects competitors from ruinous competition 
D)  also involves fixing the quantity of a product or service to be produced or provided

Question 16

The government may seek civil damages,but not treble damages,for violations of antitrust laws.

Accepted Answer

A) True 
 B)False

Question 17

A per se violation of Section 1 of the Sherman Act that occurs when a party at one level of distribution enters into an agreement with a party at another level to adhere to a price schedule that either sets or stabilizes prices is known as ________.

Accepted Answer

A)  a group boycott 
B)  horizontal price fixing 
C)  resale price maintenance 
D)  nonprice vertical restraints 
A)  a group boycott 
B)  horizontal price fixing 
C)  resale price maintenance 
D)  nonprice vertical restraints

Question 18

What is a vertical merger? With the help of an example,illustrate the difference between backward and forward vertical mergers.

Accepted Answer

A vertical merger is a merger that integ

Question 19

A plaintiff who has not suffered injury because of price discrimination cannot recover damages under Section 2 the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true of the per se rule in restraint of trade?

Accepted Answer

A)  It does not permit any defenses and justifications to save the restraint of trade. 
B)  It applies only to restraints that are found to be unreasonable with certain evidentiary standards being met. 
C)  It applies to restraints that are based primarily on the firm's market share and power. 
D)  It requires a balancing of the positive and negative effects of the challenged restraint. 
A)  It does not permit any defenses and justifications to save the restraint of trade. 
B)  It applies only to restraints that are found to be unreasonable with certain evidentiary standards being met. 
C)  It applies to restraints that are based primarily on the firm's market share and power. 
D)  It requires a balancing of the positive and negative effects of the challenged restraint.

Exam 33: Antitrust Law and Unfair Trade Practices

Only the Federal Trade Commission (FTC)can obtain an injunction under the FTC Act.

The ________ requires certain firms to notify the Federal Trade Commission and the Justice Department in advance of a proposed merger and comply with a thirty-day waiting period before the merger is approved.

Price fixing includes stabilizing the price of a commodity or service.

A relevant market is characterized by the presence of ________.

The four largest automobile manufacturers in a country each individually come to a decision to stop purchasing tires from a certain company.In accordance with the ________ doctrine,they cannot be charged with a violation of Section 1 of the Sherman Act.

________ are a series of laws enacted to specifically limit anticompetitive behavior and monopolistic practices in almost all industries,businesses,and professions operating in the United States.

What are tying arrangements? Explain with the help of an example.

The unfair advantage is intended to prevent wealthy companies from overwhelming the competition in a given market.

A market extension merger is a merger between two companies in similar fields whose sales overlap.

The FTC is exclusively empowered to enforce the FTC Act.

The unfair advantage theory applies to ________ mergers.

Conscious parallelism is seen when ________.

Which of the following horizontal restraints of trade contains the element of monopoly?

The two tests the U.S.Supreme Court has developed for determining the lawfulness of a restraint under Section 1 of the Sherman Act are the rule of reason and the ________.

Price fixing ________.

The government may seek civil damages,but not treble damages,for violations of antitrust laws.

A per se violation of Section 1 of the Sherman Act that occurs when a party at one level of distribution enters into an agreement with a party at another level to adhere to a price schedule that either sets or stabilizes prices is known as ________.

What is a vertical merger? With the help of an example,illustrate the difference between backward and forward vertical mergers.

A plaintiff who has not suffered injury because of price discrimination cannot recover damages under Section 2 the Clayton Act.

Which of the following is true of the per se rule in restraint of trade?

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