Question 1

Group boycotts are per se violations.

Accepted Answer

A) True 
 B)False  True

Question 2

Termination of a TV retailer's sales contract with a TV manufacturer by that manufacturer for selling the manufacturer's TVs at too-low prices is:

Accepted Answer

A) a per se violation of the Sherman Act. 
B) resale price maintenance subject to a rule of reason review. 
C) price fixing. 
D) None of the above 
A) a per se violation of the Sherman Act. 
B) resale price maintenance subject to a rule of reason review. 
C) price fixing. 
D) None of the above B

Question 3

The Robinson-Patman Act deals with price discrimination.

Accepted Answer

A) True 
 B)False  True

Question 4

The failing company doctrine is an exception to horizontal merger restrictions.

Accepted Answer

A) True 
 B)False

Question 5

Fair trade contracts:

Accepted Answer

A) are void. 
B) have been consistently enforced since 1975 to the present day. 
C) have been changed by the Leegin case. 
D) have been changed by the Khan case. 
A) are void. 
B) have been consistently enforced since 1975 to the present day. 
C) have been changed by the Leegin case. 
D) have been changed by the Khan case.

Question 6

Homer, Inc. is the western regional distributor for Plato Ice Cream. Homer charges grocers in California $3.00 per half gallon but charges Utah grocers only $2.00 per half gallon. Homer says the Utah ice cream market is much more competitive and he has to meet the market. Utah competitors charge between $2.50 and $2.75 per half gallon. Homer:

Accepted Answer

A) has engaged in price discrimination. 
B) is simply meeting the competition. 
C) is exempt from Robinson-Patman because of interstate sales. 
D) None of the above 
A) has engaged in price discrimination. 
B) is simply meeting the competition. 
C) is exempt from Robinson-Patman because of interstate sales. 
D) None of the above

Question 7

A covenant in the sale of a dry cleaning business that prohibits the seller from operating a dry cleaning business anywhere in that state is too restrictive to be enforced.

Accepted Answer

A) True 
 B)False

Question 8

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines. The result is that 93 percent of all new pools have the system, and 94 percent of all pool owners buying replacement systems choose Pool Line. Pool Line's competitors have brought suit charging Pool Line with monopolization of the pool cleaning market. Pool Line:

Accepted Answer

A) probably has a monopoly per se because of the 90 percent+ market share figures. 
B) probably has a valid defense of superior skill, foresight, and industry. 
C) will owe treble damages to the competitors. 
D) has probably obtained a monopoly illegally. 
A) probably has a monopoly per se because of the 90 percent+ market share figures. 
B) probably has a valid defense of superior skill, foresight, and industry. 
C) will owe treble damages to the competitors. 
D) has probably obtained a monopoly illegally.

Question 9

Covenants not to compete are illegal per se.

Accepted Answer

A) True 
 B)False

Question 10

An agreement among competitors to control the supply of their products to the market violates the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 11

Horizontal mergers:

Accepted Answer

A) include mergers between manufacturers and jobbers. 
B) can be approved if a failing company is acquired. 
C) are always antitrust violations. 
D) have a detrimental effect on competition. 
A) include mergers between manufacturers and jobbers. 
B) can be approved if a failing company is acquired. 
C) are always antitrust violations. 
D) have a detrimental effect on competition.

Question 12

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines. The result is that 93 percent of all new pools have the system, and 94 percent of all pool owners buying replacement systems choose Pool Line. The relevant product market is:

Accepted Answer

A) pool cleaning systems. 
B) pool supplies and equipment. 
C) cleaning equipment. 
D) outdoor recreation supplies. 
A) pool cleaning systems. 
B) pool supplies and equipment. 
C) cleaning equipment. 
D) outdoor recreation supplies.

Question 13

Treble damages are recoverable for actions brought under:

Accepted Answer

A) the Sherman Act. 
B) the FTC Act. 
C) the Antitrust Improvements Act. 
D) All of the above 
A) the Sherman Act. 
B) the FTC Act. 
C) the Antitrust Improvements Act. 
D) All of the above

Question 14

The EU has:

Accepted Answer

A) nearly identical antitrust guidelines compared to the U.S. 
B) adopted U.S. antitrust laws. 
C) its own set of antitrust laws; some have negatively affected U.S. companies. 
D) its own set of antitrust laws; none of them have negatively affected U.S. companies. 
A) nearly identical antitrust guidelines compared to the U.S. 
B) adopted U.S. antitrust laws. 
C) its own set of antitrust laws; some have negatively affected U.S. companies. 
D) its own set of antitrust laws; none of them have negatively affected U.S. companies.

Question 15

All horizontal mergers are illegal because there is a presumption that such mergers significantly increase market concentration.

Accepted Answer

A) True 
 B)False

Question 16

There is no price discrimination when lower prices are charged for generic label cans of the same product.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following acts prohibits unfair methods of competition?

Accepted Answer

A) Sherman Act 
B) Federal Trade Commission Act 
C) Robinson-Patman Act 
D) Clayton Act 
A) Sherman Act 
B) Federal Trade Commission Act 
C) Robinson-Patman Act 
D) Clayton Act

Question 18

Pat's Bicycle Shop is a Schwinn dealer. Schwinn has agreed to let Pat be the only retailer of Schwinn bicycles in the area. What factors must be examined to determine if this agreement is illegal?

Accepted Answer

A key factor is whether or not there is

Question 19

Phillip Esten operates a mail store in which he offers various services such as packaging items for shipment, delivering items to overnight services, and a fax machine. Esten has been charging $2.00 per page for the fax service, but a new store has opened in a nearby shopping center that is charging $1.00 per page. Esten lowers his price to $.50 per page, knowing this charge will not always cover his cost. Esten's actions:

Accepted Answer

A) constitute predatory pricing and are a violation of the Robinson-Patman Act. 
B) constitute meeting the competition. 
C) constitute resale price maintenance violations. 
D) None of the above 
A) constitute predatory pricing and are a violation of the Robinson-Patman Act. 
B) constitute meeting the competition. 
C) constitute resale price maintenance violations. 
D) None of the above

Question 20

The Clayton Act provides for treble damage recovery for all antitrust violations.

Accepted Answer

A) True 
 B)False

Group boycotts are per se violations.

Termination of a TV retailer's sales contract with a TV manufacturer by that manufacturer for selling the manufacturer's TVs at too-low prices is:

The Robinson-Patman Act deals with price discrimination.

The failing company doctrine is an exception to horizontal merger restrictions.

Fair trade contracts:

A covenant in the sale of a dry cleaning business that prohibits the seller from operating a dry cleaning business anywhere in that state is too restrictive to be enforced.

Covenants not to compete are illegal per se.

An agreement among competitors to control the supply of their products to the market violates the Sherman Act.

Horizontal mergers:

Treble damages are recoverable for actions brought under:

The EU has:

All horizontal mergers are illegal because there is a presumption that such mergers significantly increase market concentration.

There is no price discrimination when lower prices are charged for generic label cans of the same product.

Which of the following acts prohibits unfair methods of competition?

Pat's Bicycle Shop is a Schwinn dealer. Schwinn has agreed to let Pat be the only retailer of Schwinn bicycles in the area. What factors must be examined to determine if this agreement is illegal?

The Clayton Act provides for treble damage recovery for all antitrust violations.

Introduction to Law

Business Ethics and Social Responsibility

The Court System and Dispute Resolution

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance, Remedies, and Rights

Business Marketing and Products: Ads and Product Safety

Business and Intellectual Property Law

Agency Law

Governance and Structure: the Law of Business Associations

Governance and Regulation: Securities Law

Business and Employees: Employment Regulation

Business and Employees: Employment Discrimination

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Exam 13: Business Competition: Antitrust Law

Group boycotts are per se violations.

Termination of a TV retailer's sales contract with a TV manufacturer by that manufacturer for selling the manufacturer's TVs at too-low prices is:

The Robinson-Patman Act deals with price discrimination.

The failing company doctrine is an exception to horizontal merger restrictions.

Fair trade contracts:

A covenant in the sale of a dry cleaning business that prohibits the seller from operating a dry cleaning business anywhere in that state is too restrictive to be enforced.

Covenants not to compete are illegal per se.

An agreement among competitors to control the supply of their products to the market violates the Sherman Act.

Horizontal mergers:

Treble damages are recoverable for actions brought under:

The EU has:

All horizontal mergers are illegal because there is a presumption that such mergers significantly increase market concentration.

There is no price discrimination when lower prices are charged for generic label cans of the same product.

Which of the following acts prohibits unfair methods of competition?

Pat's Bicycle Shop is a Schwinn dealer. Schwinn has agreed to let Pat be the only retailer of Schwinn bicycles in the area. What factors must be examined to determine if this agreement is illegal?

The Clayton Act provides for treble damage recovery for all antitrust violations.

Introduction to Law

Business Ethics and Social Responsibility

The Court System and Dispute Resolution

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance, Remedies, and Rights

Business Marketing and Products: Ads and Product Safety

Business and Intellectual Property Law

Agency Law

Governance and Structure: the Law of Business Associations

Governance and Regulation: Securities Law

Business and Employees: Employment Regulation

Business and Employees: Employment Discrimination

Filters