Exam 30: Government Regulations:Securities and Antitrust

Insiders must turn over to the corporation any profits they make from the?purchase and sale or sale and purchase of company securities made within a six-month period.

This agreement violates the: Fact Pattern 39-1 Two universities located within 30 miles of each other agree to divide their market so as to help them both.The two schools draw a line down a map and each university agrees to accept students only on their side of the line.

Which of the following is not an element of a tying agreement under the Clayton Act?

Gary,Louise,and Brian,who own competing gas stations in town,happen to see each other at a restaurant one morning and have breakfast together.While talking,they decide to set their gas prices at the same amount.They have committed an illegal act only if the agreed price is unfair to consumers.

Pat's Pen Co.manufacturers and sells an inexpensive ball-point pen.Salley's Stationery purchases the pens for $.25 each in quantities of 1,000.Salley's discovered that a national chain,a competitor of Salley's,buys the pen at $.20 for 1,000.If Salley's Stationery sues Pat's Pen Co.for price discrimination:

Explain the overall purposes of the Sherman Antitrust Act,the Clayton Act,and the Robinson-Patman Act.How do each of these Acts relate to each other?

The 1933 Act prohibits fraud only in transactions involving registered securities.

A Tippee

The Sherman Act was enacted to deal with.....

A defense to a civil action brought under Section 10(b)and Rule 10b-5 of the 1934 Act would be:

The most accurate statement about the Robinson-Patman Act is:

In the case of Leegin Creative Leather Products Inc.v.Psks,Inc.the court had to decide..

Under the Robinson-Patman Act was it is legal to charge a different price for a product if...

Such an agreement is:

The SEC has enforcement powers,including the power to issue cease and desist orders,to levy fines,and to confiscate profits from illegal transactions.

What is true about insider trading?

The Clayton Act prohibits anti-competitive mergers.

Insider trading is illegal only if the person with secret information has a duty to disclose to those with whom he trades,thus in Chiarella v US,Mr.Chiarella was found innocent.

The Sherman Act was designed to prevent extreme concentrations of economic power.

Ed was an independent owner of a chain of TV stores.He successfully got customers into his store by cutting his prices on widely advertised name-brand products in order to sell other products for which he received a bigger profit.When the manufacturers of three of the name-brand products discovered Ed's actions,they agreed secretly to stop selling him their TVs.The three manufacturers: