Question 1

All tying arrangements and exclusive-dealing contracts are per se illegal.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following activities is judged by the rule-of-reason standard?

Accepted Answer

A)  horizontal price-fixing 
B)  group boycotts 
C)  some divisions of markets 
D)  exchange of information 
A)  horizontal price-fixing 
B)  group boycotts 
C)  some divisions of markets 
D)  exchange of information D

Question 3

Restraint of trade is the action that interferes with the political laws governing an economy.

Accepted Answer

A) True 
 B)False  False

Question 4

Business conduct that may not quite reach the level of prohibition under either the Sherman or the Clayton Act may be actionable under the "unfair" competition language of the FTCA.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a correct statement regarding the global dimensions of U.S. antitrust laws?

Accepted Answer

A)  The U.S. Department of Justice has stated that U.S. antitrust law will be applied to all business practices, even if they have no "direct or intended effect" on the foreign commerce of the United States. 
B)  Most commentators agree that even trivial restraints on the foreign commerce of the United States are likely to be prosecuted. 
C)  U.S. appellate courts have held that U.S. courts have jurisdiction over business conduct by a foreign corporation that is based on a decision by the corporation's government to replace a competitive economic model with a state-regulated model. 
D)  The courts of the United States evaluate the lawfulness of acts of foreign sovereigns performed within their own territories. 
A)  The U.S. Department of Justice has stated that U.S. antitrust law will be applied to all business practices, even if they have no "direct or intended effect" on the foreign commerce of the United States. 
B)  Most commentators agree that even trivial restraints on the foreign commerce of the United States are likely to be prosecuted. 
C)  U.S. appellate courts have held that U.S. courts have jurisdiction over business conduct by a foreign corporation that is based on a decision by the corporation's government to replace a competitive economic model with a state-regulated model. 
D)  The courts of the United States evaluate the lawfulness of acts of foreign sovereigns performed within their own territories.

Question 6

The formulation and enforcement of antitrust policy have been substantially affected by the disciplines of and .

Accepted Answer

A)  economics; ethics 
B)  sociology; economics 
C)  sociology; law 
D)  law; economics 
A)  economics; ethics 
B)  sociology; economics 
C)  sociology; law 
D)  law; economics

Question 7

Which of the following concepts is important in the determination of a company's relevant product market?

Accepted Answer

A)  advertising budget 
B)  retail sales tax rate 
C)  cross-elasticity of demand 
D)  government spending projections 
A)  advertising budget 
B)  retail sales tax rate 
C)  cross-elasticity of demand 
D)  government spending projections

Question 8

The defending parties of civil suits, because of the cost of litigation and the attendant bad publicity,often choose not to fight a case and instead enter into a .

Accepted Answer

A)  consent decree 
B)  guilty plea 
C)  price-fixing clause 
D)  replacement order 
A)  consent decree 
B)  guilty plea 
C)  price-fixing clause 
D)  replacement order

Question 9

If two sales by a single seller to two purchasers take place in intrastate commerce, the Clayton Act does not apply.

Accepted Answer

A) True 
 B)False

Question 10

Section 1 of the Sherman Act of 1890 forbids monopolizing, attempts to monopolize, or conspiracies to monopolize.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of the enforcement of the Clayton Act of 1914?

Accepted Answer

A)  When the Clayton Act was enacted, it provided criminal punishment for violators. 
B)  The Clayton Act does not allow individuals to obtain injunctions. 
C)  The Justice Department, the Federal Trade Commission, and private individuals and corporations can all enforce Section 7 of the Clayton Act. 
D)  If a business is found guilty of violating the Sherman Act, this finding cannot be used as evidence of a violation when a party sues for damages under the Clayton Act. 
A)  When the Clayton Act was enacted, it provided criminal punishment for violators. 
B)  The Clayton Act does not allow individuals to obtain injunctions. 
C)  The Justice Department, the Federal Trade Commission, and private individuals and corporations can all enforce Section 7 of the Clayton Act. 
D)  If a business is found guilty of violating the Sherman Act, this finding cannot be used as evidence of a violation when a party sues for damages under the Clayton Act.

Question 12

Courts generally have defined the geographic market as the area in which the defendant's firm .

Accepted Answer

A)  competes head-on with others in the relevant product market 
B)  focuses the bulk of its budget on advertising 
C)  engages in horizontal price-fixing 
D)  contracts with retailers in cases involving vertical restraints 
A)  competes head-on with others in the relevant product market 
B)  focuses the bulk of its budget on advertising 
C)  engages in horizontal price-fixing 
D)  contracts with retailers in cases involving vertical restraints

Question 13

Trusts were originally business arrangements in which owners of stocks in several companies placed their securities in the hands of , who controlled and managed the companies.

Accepted Answer

A)  stockholders 
B)  trustees 
C)  third party beneficiaries 
D)  assignees 
A)  stockholders 
B)  trustees 
C)  third party beneficiaries 
D)  assignees

Question 14

Non-price vertical restraints are restraints used by a manufacturer to limit the territory in which a retailer may sell the manufacturer's products and the number of stores the retailer can operate, as well as the customers the retailer can serve, in a location.

Accepted Answer

A) True 
 B)False

Question 15

In the context of implied agreements established by circumstantial evidence, which of the following are the two major problems that courts have to deal with that violate the Sherman Act?

Accepted Answer

A)  intra-enterprise conspiracy and restraint of trade 
B)  intra-enterprise conspiracy and conscious parallelism 
C)  class action suits and restraint of trade 
D)  class action suits and conscious parallelism 
A)  intra-enterprise conspiracy and restraint of trade 
B)  intra-enterprise conspiracy and conscious parallelism 
C)  class action suits and restraint of trade 
D)  class action suits and conscious parallelism

Question 16

Which of the following antitrust provisions focuses on the unlawful selling of corporate assets to create a monopoly?

Accepted Answer

A)  Clayton Act, Section 7 
B)  Clayton Act, Section 2 
C)  Sherman Act, Section 2 
D)  Sherman Act, Section 1 
A)  Clayton Act, Section 7 
B)  Clayton Act, Section 2 
C)  Sherman Act, Section 2 
D)  Sherman Act, Section 1

Question 17

Section of the Clayton Act prohibits fictitious brokerage payments.

Accepted Answer

A)  2(a) 
B)  2(d) 
C)  2(c) 
D)  2(f) 
A)  2(a) 
B)  2(d) 
C)  2(c) 
D)  2(f)

Question 18

A corporation convicted of criminal conduct under the Sherman Act faces a fine of up to .

Accepted Answer

A)  $100,000 for each offense 
B)  $100,000 for all offenses in the aggregate 
C)  $10,000,000 per offense to a maximum of $100,000,000 for all offenses in aggregate 
D)  $100,000,000 for each offense 
A)  $100,000 for each offense 
B)  $100,000 for all offenses in the aggregate 
C)  $10,000,000 per offense to a maximum of $100,000,000 for all offenses in aggregate 
D)  $100,000,000 for each offense

Question 19

injury occurs when a seller cuts prices in one geographic area in order to drive out a local competitor.

Accepted Answer

A)  Secondary-line 
B)  Primary-line 
C)  Collateral-line 
D)  Tertiary-line 
A)  Secondary-line 
B)  Primary-line 
C)  Collateral-line 
D)  Tertiary-line

Question 20

Price-fixing among competitors is a serious violation of the Sherman Act.

Accepted Answer

A) True 
 B)False

Exam 24: Antitrust Laws

All tying arrangements and exclusive-dealing contracts are per se illegal.

Which of the following activities is judged by the rule-of-reason standard?

Restraint of trade is the action that interferes with the political laws governing an economy.

Business conduct that may not quite reach the level of prohibition under either the Sherman or the Clayton Act may be actionable under the "unfair" competition language of the FTCA.

Which of the following is a correct statement regarding the global dimensions of U.S. antitrust laws?

The formulation and enforcement of antitrust policy have been substantially affected by the disciplines of and .

Which of the following concepts is important in the determination of a company's relevant product market?

The defending parties of civil suits, because of the cost of litigation and the attendant bad publicity,often choose not to fight a case and instead enter into a .

If two sales by a single seller to two purchasers take place in intrastate commerce, the Clayton Act does not apply.

Section 1 of the Sherman Act of 1890 forbids monopolizing, attempts to monopolize, or conspiracies to monopolize.

Which of the following is true of the enforcement of the Clayton Act of 1914?

Courts generally have defined the geographic market as the area in which the defendant's firm .

Trusts were originally business arrangements in which owners of stocks in several companies placed their securities in the hands of , who controlled and managed the companies.

Non-price vertical restraints are restraints used by a manufacturer to limit the territory in which a retailer may sell the manufacturer's products and the number of stores the retailer can operate, as well as the customers the retailer can serve, in a location.

In the context of implied agreements established by circumstantial evidence, which of the following are the two major problems that courts have to deal with that violate the Sherman Act?

Which of the following antitrust provisions focuses on the unlawful selling of corporate assets to create a monopoly?

Section of the Clayton Act prohibits fictitious brokerage payments.

A corporation convicted of criminal conduct under the Sherman Act faces a fine of up to .

injury occurs when a seller cuts prices in one geographic area in order to drive out a local competitor.

Price-fixing among competitors is a serious violation of the Sherman Act.

Critical Thinking and Legal Reasoning

Introduction to Law and the Legal Environment of Business

The American Legal System

Alternative Tools of Dispute Resolution

Constitutional Principles

White-Collar Crime and the Business Community

Ethics, Social Responsibility, and the Business Manager

The International Legal Environment of Business

The Law of Contracts and Sales I

The Law of Contracts and Sales Ii

The Law of Torts

Product and Service Liability Law

Law of Property: Real and Personal

Intellectual Property

Agency Law

Law and Business Associations I

Law and Business Associations II

The Law of Administrative Agencies

The Employment Relationship and Immigration Laws

Laws Governing Labor-Management Relations

Employment Discrimination

Environmental Law

Rules Governing the Issuance and Trading of Securities

Laws of Debtor-Creditor Relations and Consumer Protection

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