Exam 20: Antitrust Law

In general,vertical price-fixing arrangements are intended to:

Most copyrighted music is licensed for use by BMI and ASCAP (organizations that represent musicians,composers,and publishers of music).They charge set fees to music users through "blanket licensing," which does not allow music users to bargain over price.This was attacked as price fixing.The Supreme Court held the practice:

The sponsors of the Sherman Antitrust Act saw it as:

FACT Pattern 20-2 Vysion produces TVs it sells nationwide.Vysion contracted with Karol's Appliances to make it the exclusive distributor of Vysion TVs in the San Diego area.Karol's received a promise that Vysion would not sell its TVs to any other retailer within 20 miles of Karol's. In its San Diego stores,Karol's has a unique pricing policy.A higher price is charged to customers wearing suits than to customers not wearing suits.Karol's salespeople give non-suit-wearing customers 10% discounts off of the list price,and refuse any discounts to suit-wearing customers. Don's,a rival of Karol's,asked Vysion to allow it to sell its products in San Diego.Vysion refused,pointing to its contract with Karol's.Vysion's distribution policy differs in New York from what it is in California.In New York,Vysion allows every distributor who asks to sell Vysion TVs.However,Vysion requires that New York retailers sign contracts stating that they agree not to sell Vysion products below prices in a monthly "price list" sent by Vysion. In contracts with its distributors nationwide,Vysion insists that sales of its TVs be tied to sales of its VCRs.No consumer is allowed to purchase a Vysion TV without also buying a Vysion VCR. -Refer to Fact Pattern 20-2.The agreement between Vysion and its New York retailers to charge customers according to a "price list" is:

State governments may restrict competition in industries such as cable television and not violate antitrust laws.

The first antitrust statute enacted by Congress (in 1890)was:

Ayau Distributors,which has stores in Ohio and Michigan,sells bedroom furniture for very low prices,but requires that buyers to also purchase a washing machine at a rather high price.This requirement probably is:

Under the merger guidelines a major reason to approve a merger is:

In U.S.v.El Paso Natural Gas,two gas pipeline companies in physically distinct markets,and not in competition,were not allowed to merge because it was possible that in the future they could compete with one another.

A per se rule in antitrust means the practice is exempt from prosecution.

In U.S.Steel v.Fortner Enterprises,where the purchase of mobile homes was tied to financing for them,the Supreme Court held that this tie-in sale was legal under a rule of reason analysis.

To develop a network of dealers,Hummer vehicles are sold only at one dealership per city.Other dealers want the vehicles to sell,but are refused.The existing dealers earn high profit margins due to the lack of local competition.Under antitrust law,this arrangement is likely to be found:

In Spanish Broadcasting v.Clear Channel,where Spanish sued Clear for monopolization of the Spanish-language radio market because it owned a share of Hispanic Broadcasting,a large Spanish-language radio chain,the court held that the:

Violations of the Clayton Act are the responsibility of the Justice Department and the Federal Trade Commission.

The most famous cartel around today is:

The Clayton Act was enacted in:

FACT Pattern 20-2 Vysion produces TVs it sells nationwide.Vysion contracted with Karol's Appliances to make it the exclusive distributor of Vysion TVs in the San Diego area.Karol's received a promise that Vysion would not sell its TVs to any other retailer within 20 miles of Karol's. In its San Diego stores,Karol's has a unique pricing policy.A higher price is charged to customers wearing suits than to customers not wearing suits.Karol's salespeople give non-suit-wearing customers 10% discounts off of the list price,and refuse any discounts to suit-wearing customers. Don's,a rival of Karol's,asked Vysion to allow it to sell its products in San Diego.Vysion refused,pointing to its contract with Karol's.Vysion's distribution policy differs in New York from what it is in California.In New York,Vysion allows every distributor who asks to sell Vysion TVs.However,Vysion requires that New York retailers sign contracts stating that they agree not to sell Vysion products below prices in a monthly "price list" sent by Vysion. In contracts with its distributors nationwide,Vysion insists that sales of its TVs be tied to sales of its VCRs.No consumer is allowed to purchase a Vysion TV without also buying a Vysion VCR. -Refer to Fact Pattern 20-2.If Sam's Club and Costco wished to carry Vysion TVs,these stores would be likely to:

Trade arrangements governing the relationships in the different states of production,distribution and sale of the same product are:

In Weyerhaeuser v.Ross-Simmons Hardwood Lumber,where Weyerhaeuser was accused of predatory bidding for raw timber to drive out a competitor,the Supreme Court held Weyerhaeuser was:

Which of the following must be shown by a plaintiff to win a case of predatory pricing: