Question 1

Characterizing a type of restraint as per se illegal significantly affects the prosecution of an antitrust suit.

Accepted Answer

A) True 
 B)False  True

Question 2

What are the major functions of the Federal Trade Commission (FTC) and what power does the FTC have?

Accepted Answer

The Federal Trade Commission has two major functions: (a) to prevent unfair methods of competition and (b) to prevent unfair or deceptive acts or practices in commerce. The five-member commission is empowered to conduct appropriate investigations and hearings and to issue against violators cease and desist orders that are enforceable in the federal courts and have the effect of an injunction. The FTC may also order other relief, such as affirmative disclosure, corrective advertising, and the granting of patent licenses on a reasonable royalty basis.

Question 3

The National Cooperative Research Act was passed to facilitate the use of joint ventures for joint research and development.

Accepted Answer

A) True 
 B)False  True

Question 4

Under the Clayton Act, private parties can bring civil actions in federal court for treble damages and attorneys' fees.

Accepted Answer

A) True 
 B)False

Question 5

A secondary-line injury to competition occurs when the recipient of a favored price passes the benefits of the lower price on to the next level of distribution.

Accepted Answer

A) True 
 B)False

Question 6

Sarreno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.70 per pound. In order to snare the business of one large pizza chain, Sarreno offers to sell them cheese at $1.45 per pound. This will violate the Robinson-Patman Act unless:

Accepted Answer

A)  the pizza chain can already get the cheese for $1.45 elsewhere. 
B)  Sarreno can show its price is justified because of a cost savings based on quantity. 
C)  Sarreno lowers the price to all its customers. 
D)  Any of these. 
A)  the pizza chain can already get the cheese for $1.45 elsewhere. 
B)  Sarreno can show its price is justified because of a cost savings based on quantity. 
C)  Sarreno lowers the price to all its customers. 
D)  Any of these.

Question 7

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Accepted Answer

A) True 
 B)False

Question 8

The Clayton Act deals with which of the following situations?

Accepted Answer

A)  Supply discrimination. 
B)  Tying contracts and mergers. 
C)  Interlocking ties. 
D)  Monopoly conspiracies. 
A)  Supply discrimination. 
B)  Tying contracts and mergers. 
C)  Interlocking ties. 
D)  Monopoly conspiracies.

Question 9

The courts have interpreted the Sherman Act as prohibiting contracts that unreasonably restrain trade.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Section 2 of the Sherman Act prohibits contracts, combinations, and conspiracies that restrain trade.

Accepted Answer

A) True 
 B)False

Question 12

A restraint involving collaboration among competitors at the same level in the chain of distribution is:

Accepted Answer

A)  a vertical restraint. 
B)  a horizontal restraint. 
C)  price fixing. 
D)  a trust. 
A)  a vertical restraint. 
B)  a horizontal restraint. 
C)  price fixing. 
D)  a trust.

Question 13

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Accepted Answer

A) True 
 B)False

Question 14

The principal objective of antitrust law governing mergers is to maintain competition.

Accepted Answer

A) True 
 B)False

Question 15

The Clayton Act exempts labor, agricultural, and horticultural organizations from all antitrust laws.

Accepted Answer

A) True 
 B)False

Question 16

If a wholesale manufacturer gets a retail outlet for its goods through merger, this is a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 17

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

Accepted Answer

A) True 
 B)False

Question 18

Under the 2004 amendments, individuals who violate the Sherman Antitrust Act, Sections 1 or 2, may be imprisoned for ten years and fined up to $1 million.

Accepted Answer

A) True 
 B)False

Question 19

The Federal Trade Commission was created by the Sherman Act and its powers are limited to preventing unfair methods of competition as set forth in the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 20

To determine "market share" requires knowledge of which of the following?

Accepted Answer

A)  What other products are substitutable for the product. 
B)  Where the product is sold. 
C)  How much of the product is sold. 
D)  All of these. 
A)  What other products are substitutable for the product. 
B)  Where the product is sold. 
C)  How much of the product is sold. 
D)  All of these.

Exam 42: Antitrust

Characterizing a type of restraint as per se illegal significantly affects the prosecution of an antitrust suit.

What are the major functions of the Federal Trade Commission (FTC) and what power does the FTC have?

The National Cooperative Research Act was passed to facilitate the use of joint ventures for joint research and development.

Under the Clayton Act, private parties can bring civil actions in federal court for treble damages and attorneys' fees.

A secondary-line injury to competition occurs when the recipient of a favored price passes the benefits of the lower price on to the next level of distribution.

Sarreno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.70 per pound. In order to snare the business of one large pizza chain, Sarreno offers to sell them cheese at $1.45 per pound. This will violate the Robinson-Patman Act unless:

The main goal of antitrust regulation is to prevent competitive behavior among firms.

The Clayton Act deals with which of the following situations?

The courts have interpreted the Sherman Act as prohibiting contracts that unreasonably restrain trade.

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

Section 2 of the Sherman Act prohibits contracts, combinations, and conspiracies that restrain trade.

A restraint involving collaboration among competitors at the same level in the chain of distribution is:

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

The principal objective of antitrust law governing mergers is to maintain competition.

The Clayton Act exempts labor, agricultural, and horticultural organizations from all antitrust laws.

If a wholesale manufacturer gets a retail outlet for its goods through merger, this is a horizontal merger.

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

Under the 2004 amendments, individuals who violate the Sherman Antitrust Act, Sections 1 or 2, may be imprisoned for ten years and fined up to $1 million.

The Federal Trade Commission was created by the Sherman Act and its powers are limited to preventing unfair methods of competition as set forth in the Sherman Act.

To determine "market share" requires knowledge of which of the following?

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Accountants Legal Liability

Consumer Protection

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 Wills

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