Question 1

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

Accepted Answer

A)  A court decision condemning certain business practices prohibited by U.S. antitrust laws will always give the plaintiff equitable relief. 
B)  Very few foreign corporations have assets such as bank accounts in the United States. 
C)  Section 6 of the Sherman Act provides for forfeiture of property to enforce an antitrust decree. 
D)  All treaties between the United States and a foreign country provide for the implementation of judicial decrees of U.S. courts in the foreign country's courts. 
A)  A court decision condemning certain business practices prohibited by U.S. antitrust laws will always give the plaintiff equitable relief. 
B)  Very few foreign corporations have assets such as bank accounts in the United States. 
C)  Section 6 of the Sherman Act provides for forfeiture of property to enforce an antitrust decree. 
D)  All treaties between the United States and a foreign country provide for the implementation of judicial decrees of U.S. courts in the foreign country's courts.

Question 2

The Bank Merger Act has become more significant in light of a 1985 executive order by former U.S. president Ronald Reagan approving regional banking and acquisitions by banks across state lines, when state legislatures have given prior approval.

Accepted Answer

A) True 
 B)False

Question 3

Describe the Bank Merger Act.

Accepted Answer

The Bank Merger Act of 1966 requires tha

Question 4

Advocates of the promotion of the maximization of consumer welfare using market principles and efficiency criteria define consumer welfare as an improvement in the allocation of resources without an impairment to productive efficiency.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following antitrust provisions focuses on monopolization and conspiracies to monopolize?

Accepted Answer

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

Question 6

The courts of the United States do not evaluate the lawfulness of acts of foreign sovereigns performed within their own territories, even if the foreign commerce of the United States is affected by those acts, because the doctrine forbids them to do so.

Accepted Answer

A)  commercial impracticability 
B)  substantial performance 
C)  act-of-state 
D)  impossibility of performance 
A)  commercial impracticability 
B)  substantial performance 
C)  act-of-state 
D)  impossibility of performance

Question 7

Parens patriae suits are usually brought by a state attorney general on behalf of purchasers and taxpayers in a state.

Accepted Answer

A) True 
 B)False

Question 8

Describe the Antitrust Enforcement Assistance Act of 1994.

Accepted Answer

In 1994, the U.S. Congress passed the An

Question 9

A tying arrangement involves .

Accepted Answer

A)  a seller agreeing to sell a product on condition that the purchaser buys a second product 
B)  two companies with similar products merging to increase their market share 
C)  one company purchasing another company with similar products using a hostile takeover approach 
D)  a purchaser agreeing to buy a product at a "suggested retail price" 
A)  a seller agreeing to sell a product on condition that the purchaser buys a second product 
B)  two companies with similar products merging to increase their market share 
C)  one company purchasing another company with similar products using a hostile takeover approach 
D)  a purchaser agreeing to buy a product at a "suggested retail price"

Question 10

The Chicago School approach to antitrust policy argues that antitrust decisions should be based solely on the criterion of of welfare.

Accepted Answer

A)  maximization; stakeholder 
B)  maximization; consumer 
C)  equalization; stakeholder 
D)  equalization; consumer 
A)  maximization; stakeholder 
B)  maximization; consumer 
C)  equalization; stakeholder 
D)  equalization; consumer

Question 11

When the International Association of Machinists brought a suit claiming that an agreement by member states of the Organization of Petroleum Exporting Countries (OPEC) to increase the price of crude oil through taxes and price-setting was in violation of Sections 1 and 2 of the Act, the federal district court dismissed the case for lack of jurisdiction based on the
Doctrine.

Accepted Answer

A)  Sherman; act-of-state 
B)  Sherman; commercial impracticability 
C)  Clayton; substantial performance 
D)  Clayton; frustration of purpose 
A)  Sherman; act-of-state 
B)  Sherman; commercial impracticability 
C)  Clayton; substantial performance 
D)  Clayton; frustration of purpose

Question 12

List the factors courts have traditionally examined in order to gauge a merger's impact on competition.

Accepted Answer

The courts have traditionally gauged a m

Question 13

Summarize the provisions of the Clayton Act as amended by the Robinson-Patman Act.

Accepted Answer

Section 2(a) of the Clayton Act prohibit

Question 14

Secondary-line injury occurs when competitors of one of the buyers are injured because the seller sold to that one buyer at a lower price than it sold to the others.

Accepted Answer

A) True 
 B)False

Question 15

Advocates of the antitrust goal that preserves small businesses and an economy characterized by many sellers competing with one another would .

Accepted Answer

A)  define consumer welfare as an improvement in the allocation of resources without an impairment to productive efficiency 
B)  argue that when large companies are allowed to merge, fix prices, and participate in joint ventures, jobs are lost and plants are shut down in some areas 
C)  argue that there is a direct correlation between large corporations, economic power, and control of the political process 
D)  break up large corporations such as General Motors (GM), International Business Machines (IBM), and Microsoft 
A)  define consumer welfare as an improvement in the allocation of resources without an impairment to productive efficiency 
B)  argue that when large companies are allowed to merge, fix prices, and participate in joint ventures, jobs are lost and plants are shut down in some areas 
C)  argue that there is a direct correlation between large corporations, economic power, and control of the political process 
D)  break up large corporations such as General Motors (GM), International Business Machines (IBM), and Microsoft

Question 16

A trust is defined as a .

Accepted Answer

A)  policy that is based solely on the goal of economic efficiency or the maximization of consumer welfare 
B)  business arrangement in which owners of stocks in several companies place their securities with trustees, who jointly manage the companies and pay the owners a specific share of their earnings 
C)  policy that is based on the desirability of preserving competition to prevent the accumulation of economic and political power, the dislocation of labor, and market inefficiency 
D)  business arrangement in which owners of stocks in several companies place their securities in an account that stores earnings 
A)  policy that is based solely on the goal of economic efficiency or the maximization of consumer welfare 
B)  business arrangement in which owners of stocks in several companies place their securities with trustees, who jointly manage the companies and pay the owners a specific share of their earnings 
C)  policy that is based on the desirability of preserving competition to prevent the accumulation of economic and political power, the dislocation of labor, and market inefficiency 
D)  business arrangement in which owners of stocks in several companies place their securities in an account that stores earnings

Question 17

Which of the following is true of the enforcement of antitrust laws?

Accepted Answer

A)  Enforcement of antitrust laws is carried out only in the public sectors. 
B)  Enforcement of antitrust laws is carried out only in the private sectors. 
C)  The Antitrust Division of the Justice Department exclusively enforces the Sherman Act. 
D)  The Antitrust Division of the Justice Department has exclusive jurisdiction to enforce the Federal Trade Commission Act. 
A)  Enforcement of antitrust laws is carried out only in the public sectors. 
B)  Enforcement of antitrust laws is carried out only in the private sectors. 
C)  The Antitrust Division of the Justice Department exclusively enforces the Sherman Act. 
D)  The Antitrust Division of the Justice Department has exclusive jurisdiction to enforce the Federal Trade Commission Act.

Question 18

The Harvard School is a(n) approach to antitrust policy.

Accepted Answer

A)  structural 
B)  centralized 
C)  subjective 
D)  efficiency-based 
A)  structural 
B)  centralized 
C)  subjective 
D)  efficiency-based

Question 19

The Chicago School approach to antitrust policy is a or approach to antitrust policy.

Accepted Answer

A)  fairness; equity 
B)  fairness; efficiency 
C)  market; equity 
D)  market; efficiency 
A)  fairness; equity 
B)  fairness; efficiency 
C)  market; equity 
D)  market; efficiency

Question 20

Landmark Oil Company has a contract with Atlas Oil Stations that requires Atlas to buy all its oil and petroleum products from Landmark only. This is an example of a(n) .

Accepted Answer

A)  market division contract 
B)  vertical price-fixing arrangement 
C)  tying arrangement 
D)  exclusive dealing contract 
A)  market division contract 
B)  vertical price-fixing arrangement 
C)  tying arrangement 
D)  exclusive dealing contract

Exam 24: Antitrust Laws

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

The Bank Merger Act has become more significant in light of a 1985 executive order by former U.S. president Ronald Reagan approving regional banking and acquisitions by banks across state lines, when state legislatures have given prior approval.

Describe the Bank Merger Act.

Advocates of the promotion of the maximization of consumer welfare using market principles and efficiency criteria define consumer welfare as an improvement in the allocation of resources without an impairment to productive efficiency.

Which of the following antitrust provisions focuses on monopolization and conspiracies to monopolize?

The courts of the United States do not evaluate the lawfulness of acts of foreign sovereigns performed within their own territories, even if the foreign commerce of the United States is affected by those acts, because the doctrine forbids them to do so.

Parens patriae suits are usually brought by a state attorney general on behalf of purchasers and taxpayers in a state.

Describe the Antitrust Enforcement Assistance Act of 1994.

A tying arrangement involves .

The Chicago School approach to antitrust policy argues that antitrust decisions should be based solely on the criterion of of welfare.

List the factors courts have traditionally examined in order to gauge a merger's impact on competition.

Summarize the provisions of the Clayton Act as amended by the Robinson-Patman Act.

Secondary-line injury occurs when competitors of one of the buyers are injured because the seller sold to that one buyer at a lower price than it sold to the others.

Advocates of the antitrust goal that preserves small businesses and an economy characterized by many sellers competing with one another would .

A trust is defined as a .

Which of the following is true of the enforcement of antitrust laws?

The Harvard School is a(n) approach to antitrust policy.

The Chicago School approach to antitrust policy is a or approach to antitrust policy.

Landmark Oil Company has a contract with Atlas Oil Stations that requires Atlas to buy all its oil and petroleum products from Landmark only. This is an example of a(n) .

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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