Exam 40: Antitrust

All price discrimination is illegal under the Robinson-Patman Act.

Margaret tells the members of the Raleigh Association of Restaurant Owners that they will be able to get a better price on linen supplies (tablecloths, napkins) if they will deal with one supplier rather than split their business between two.They all know Margaret deals with Niagara Linen rather than Cayuga.Under the Sherman Act, if they all sign contracts with Niagara:

Market share greater than what percentage generally indicates monopoly power?

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

The court interpretation of the Sherman Act results in the prohibition of monopolies only if a firm possesses market power that it attained unfairly or it abused the monopoly power once attained.

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

The Federal Trade Commission has only three commissioners.

The 2010 guidelines regarding horizontal mergers:

A restraint of trade may be classified as either horizontal or vertical.

A monopolistic market will produce more goods than a competitive market; however, the problem the Sherman Act tries to address is the fact that a monopolistic market will sell those goods at a higher price than a competitive market.

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms.This recommendation is probably:

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

The Sherman Act contains both civil and criminal penalties.

If one major U.S.car manufacturer acquired another, the Clayton Act would require close scrutiny of the transaction.

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

A merger involving firms that are not competitors, customers, or suppliers is termed a:

The Justice Department has issued a "market structure screen," under which the department will not challenge restraints by a firm having less than 25 percent of the relevant market.

Group boycotts are illegal per se.

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, individuals who violate the Sherman Antitrust Act may be imprisoned for ten years and fined up to $1,000,000.

Meeting competition is a defense to a charge of price discrimination under the Robinson-Patman Act.