Question 1

Group boycotts are illegal per se.

Accepted Answer

A) True 
 B)False  False

Question 2

For purposes of the concerted action requirement under Section 1 of the Sherman Act:

Accepted Answer

A)  a corporation is viewed separately from its wholly owned subsidiaries. 
B)  a firm and its employees are viewed as one entity. 
C)  concerted action must be established by an express agreement. 
D)  All of these are correct. 
A)  a corporation is viewed separately from its wholly owned subsidiaries. 
B)  a firm and its employees are viewed as one entity. 
C)  concerted action must be established by an express agreement. 
D)  All of these are correct. B

Question 3

Sareno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.50 per pound. In order to snare the business from a pizzeria, Sareno offers to sell them cheese at $1.25 per pound. This will violate the Robinson- Patman Act unless:

Accepted Answer

A)  the pizzeria can already get the cheese for $1.15 elsewhere. 
B)  Sareno can show it is cost justified because of quantity. 
C)  Sareno lowers the price to all its customers. 
D)  Any of these. 
A)  the pizzeria can already get the cheese for $1.15 elsewhere. 
B)  Sareno can show it is cost justified because of quantity. 
C)  Sareno lowers the price to all its customers. 
D)  Any of these. D

Question 4

Determining how big the corporation is in terms of total assets is the prevalent test of monopoly power.

Accepted Answer

A) True 
 B)False

Question 5

The 1992 Horizontal Merger Guidelines, as revised in 1997 and 2010:

Accepted Answer

A)  were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B)  require a mechanical application; in order to reduce the previously used analytical framework, which was far too subjective and uncertain. 
C)  rejects use of the Herfindahl-Hirschman Index. 
D)  deals with mergers of powerful buyers and mergers between competing buyers. 
A)  were issued by the Justice Department to be additional to the FTC's separate guidelines. 
B)  require a mechanical application; in order to reduce the previously used analytical framework, which was far too subjective and uncertain. 
C)  rejects use of the Herfindahl-Hirschman Index. 
D)  deals with mergers of powerful buyers and mergers between competing buyers.

Question 6

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 7

Antitrust law, as currently applied, focuses on the resulting entity's absolute size.

Accepted Answer

A) True 
 B)False

Question 8

The Sherman Act contains both civil and criminal penalties.

Accepted Answer

A) True 
 B)False

Question 9

Prices can be controlled through direct price fixing or by market allocation.

Accepted Answer

A) True 
 B)False

Question 10

The more narrowly that a product market is defined as being, the more likely that the firm will be found to possess monopoly power.

Accepted Answer

A) True 
 B)False

Question 11

If X Co. agrees with S Co. that X will not sell beer in Wisconsin if S will not sell beer in Colorado, under the Sherman Act, this is:

Accepted Answer

A)  no violation. 
B)  a per se illegal horizontal price fixing agreement. 
C)  a per se illegal horizontal market allocation. 
D)  a per se illegal horizontal tying agreement. 
A)  no violation. 
B)  a per se illegal horizontal price fixing agreement. 
C)  a per se illegal horizontal market allocation. 
D)  a per se illegal horizontal tying agreement.

Question 12

Market share greater than what percentage generally indicates monopoly power?

Accepted Answer

A)  25%. 
B)  30%. 
C)  50%. 
D)  75%. 
A)  25%. 
B)  30%. 
C)  50%. 
D)  75%.

Question 13

What are the major functions of the Federal Trade Commission (FTC)?

Accepted Answer

The Federal Trade Commission has two maj

Question 14

Explain how price differentials may be justified so that the Robinson-Patman Act is not violated.

Accepted Answer

Price discrimination is forbidden only w

Question 15

The Justice Department's policy toward conduct by foreign companies is to:

Accepted Answer

A)  focus on boycotts and cartels that harm U.S. exports. 
B)  examine conduct to determine whether it would violate the law if it occurred within the borders of the U.S. 
C)  expand the enforcement of the Sherman Act to include conduct by foreign companies that harms U.S. exports. 
D)  All of these. 
A)  focus on boycotts and cartels that harm U.S. exports. 
B)  examine conduct to determine whether it would violate the law if it occurred within the borders of the U.S. 
C)  expand the enforcement of the Sherman Act to include conduct by foreign companies that harms U.S. exports. 
D)  All of these.

Question 16

A corporation may be guilty of a criminal felony violation of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 17

Discuss the validity and effect of each of the following:
a.  Two manufacturers of the same product decide to allocate territories, with one taking the southern States.
b.  A labor union encourages its members and all consumers to boycott a product manufactured by a company that refuses to honor a union contract.
Carrin's Department Store sells its products for 10% under the suggested retail price. One
c. manufacturer tells the store it will not supply wholesale goods to it unless it charges at least the suggested retail price.

Accepted Answer

_a_.^Thi^sⁱ^s^a^horizonta^l^marke^t^allocation^.^I^tⁱ^s^a^pe^r^s^e^violatioⁿ^o^f^Sectioⁿ¹^o^f^the ^Shermaⁿ^Act. _b_.^Thi^s^woul^d^b^e^aⁿ^illega^l^grou^p^boycott^,^excep^t^tha^tⁱ^t^involve^s^a^labo^r^union^,^an^d^the ^Claytoⁿ^Ac^t^exempt^s^labo^r^union^s^fro^m^al^l^antitrus^t^laws. Until recently it was considered a p

Question 18

Elko Inc. and Fulda Inc. closely monitor each other's actions regarding the sale of consumer electronic products.

Accepted Answer

Each corporation tries to match the othe

Question 19

In 2007, the Supreme Court held that vertical price restraints are per se violations of Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 20

Conscious parallelism is sufficient in itself to suggest a conspiracy in violation of Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Exam 40: Antitrust

Group boycotts are illegal per se.

For purposes of the concerted action requirement under Section 1 of the Sherman Act:

Sareno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.50 per pound. In order to snare the business from a pizzeria, Sareno offers to sell them cheese at $1.25 per pound. This will violate the Robinson- Patman Act unless:

Determining how big the corporation is in terms of total assets is the prevalent test of monopoly power.

The 1992 Horizontal Merger Guidelines, as revised in 1997 and 2010:

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

Antitrust law, as currently applied, focuses on the resulting entity's absolute size.

The Sherman Act contains both civil and criminal penalties.

Prices can be controlled through direct price fixing or by market allocation.

The more narrowly that a product market is defined as being, the more likely that the firm will be found to possess monopoly power.

If X Co. agrees with S Co. that X will not sell beer in Wisconsin if S will not sell beer in Colorado, under the Sherman Act, this is:

Market share greater than what percentage generally indicates monopoly power?

What are the major functions of the Federal Trade Commission (FTC)?

Explain how price differentials may be justified so that the Robinson-Patman Act is not violated.

The Justice Department's policy toward conduct by foreign companies is to:

A corporation may be guilty of a criminal felony violation of the Sherman Act.

Elko Inc. and Fulda Inc. closely monitor each other's actions regarding the sale of consumer electronic products.

In 2007, the Supreme Court held that vertical price restraints are per se violations of Section 1 of the Sherman Act.

Conscious parallelism is sufficient in itself to suggest a conspiracy in violation of Section 1 of the Sherman Act.

Introduction to Law

Business Ethics and the Social Responsibility of Business

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

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

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