Exam 27: Antitrust Law

A market division by class of customer between rival firms does not violate antitrust law.

The primary measure of monopoly power is a competitor's assessment of the acts of a firm under review.

To acquire monopoly power in its market,Sugar,Inc. ,sets its prices substantially below the costs of production.Under antitrust law,this is​

Monopoly power may be proved by evidence that a firm used its power to control prices.

Through smart business management,Harvest Bakery obtains monopoly power in its market.This is​

Fresh Vegetables,Inc. ,a wholesaler,refuses to sell its produce to Good Foods Marketplace,Inc. ,a retailer.This is​

For products that are sold nationwide,the relevant geographic market is the entire globe.

By contract,Oil Shale Corporation forbids Petro,Inc. ,a wholesale buyer of Oil Shale's products,from purchasing the products of its competitors.This exclusive-dealing contract is allowed​

Pump Makers Inc.makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers.This is​

The Sherman Act is an example of legislation designed to curb anticompetitive business practices.

Size alone determines whether a firm is a monopoly.

Omni Discount Company and Price-Lo Stores,Inc. ,agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production,markets,and prices,effectively reducing competition and increasing profits.This is most likely​

An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement actually constitutes a reasonable restraint of trade.

A group boycott that is intended to eliminate competition is legal.

Clear View Corporation offers to sell its flat-panel display monitors to Best Computer & Video,Inc. ,only if Best agrees to buy Clear View's servicing of its products along with the monitors.This is​

Trail Bikes,Inc. ,makes and distributes Trail-brand bicycles and accessories to authorized dealers.To prevent price-cutting by dealers in direct competition,Trail Bikes imposes limits on where each dealer can sell Trail products.This is​

Fact Pattern 27-1 Pharma Corporation makes and sells QualMed,the most prescribed name-brand blood pressure-lowering medication.Renew Drugs,Inc. ,has the potential to make a generic version of the same drug. -Refer to Fact Pattern 27-1.A court would most likely rule that the agreement between Pharma and Renew is​

Earthgro,Inc. ,is one of many producers of cut flowers.Earthgro refuses to sell its products to Florist Shops Corporation.Under antitrust law,this refusal is most likely​

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Joint refusals to deal are not subject to scrutiny under the Sherman Act.