Question 1

Territorial arrangements within channels of distribution are analyzed under the rule of reason.

Accepted Answer

A) True 
 B)False

Question 2

If there are four firms in a market,each with a 25 percent share,the final Herfindahl-Hirschman Index is ______.

Accepted Answer

A)  4000 points 
B)  2000 points 
C)  25 points 
D)  4 points 
E)  2500 points 
A)  4000 points 
B)  2000 points 
C)  25 points 
D)  4 points 
E)  2500 points

Question 3

In a 1943 case known as Parker v.Brown,the Supreme Court created a ______ to the Sherman Act.

Accepted Answer

A)  limited liability exemption 
B)  double tax exemption 
C)  general action exemption 
D)  merger monopoly exemption 
E)  state action exemption 
A)  limited liability exemption 
B)  double tax exemption 
C)  general action exemption 
D)  merger monopoly exemption 
E)  state action exemption

Question 4

Which of the following is an exemption from the Sherman Act that extends to concerted efforts to lobby government officials?

Accepted Answer

A)  Noerr-Pennington doctrine 
B)  quick look doctrine 
C)  state action doctrine 
D)  per se illegality doctrine 
E)  doctrine of inherency 
A)  Noerr-Pennington doctrine 
B)  quick look doctrine 
C)  state action doctrine 
D)  per se illegality doctrine 
E)  doctrine of inherency

Question 5

Which of the following statements is true of the Sherman Act?

Accepted Answer

A)  The Sherman Act applies only to the sale of goods. 
B)  Price fixing in the service sector is permitted under the Sherman Act. 
C)  Maximum-price agreements are illegal, while minimum-price agreements are not illegal. 
D)  The Sherman Act covers services, including those performed by learned professions. 
E)  An action is not considered to be price fixing if the prices fixed are fair or reasonable. 
A)  The Sherman Act applies only to the sale of goods. 
B)  Price fixing in the service sector is permitted under the Sherman Act. 
C)  Maximum-price agreements are illegal, while minimum-price agreements are not illegal. 
D)  The Sherman Act covers services, including those performed by learned professions. 
E)  An action is not considered to be price fixing if the prices fixed are fair or reasonable.

Question 6

Some monopolies are lawful.

Accepted Answer

A) True 
 B)False

Question 7

It now appears the Supreme Court is comfortable limiting the per se illegality analysis to vertical agreements among competitors.

Accepted Answer

A) True 
 B)False

Question 8

What led to the enactment of the Sherman Act in 1890?

Accepted Answer

During its first hundred years,the feder

Question 9

What are concerted activities?

Accepted Answer

Many antitrust cases involve agreements

Question 10

In ______,a form of tying arrangement,a seller compels a buyer or lessee to take a complete product range from the seller.

Accepted Answer

A)  reciprocal agreement 
B)  med-arb forcing 
C)  rescission contract 
D)  restitution agreement 
E)  full-line forcing 
A)  reciprocal agreement 
B)  med-arb forcing 
C)  rescission contract 
D)  restitution agreement 
E)  full-line forcing

Question 11

The Federal Trade Commission prevents wrongful actions by the use of cease and desist orders.

Accepted Answer

A) True 
 B)False

Question 12

Fields Tech School decides to expand and open a new campus in another state.Rather than acquiring land and building new buildings,the school board decides to merge with an existing school,Fennelstate,which has similar programs in the other state.Fennelstate is a small commuter school with the majority of the students from the same state.The merger between Fields Tech School and Fennelstate is best described as a ______.

Accepted Answer

A)  vertical merger 
B)  geographic extension merger 
C)  product extension merger 
D)  horizontal merger 
E)  freeze-out merger 
A)  vertical merger 
B)  geographic extension merger 
C)  product extension merger 
D)  horizontal merger 
E)  freeze-out merger

Question 13

In 1914,Congress,recognizing that the Sherman Act needed to be more specific,enacted the ______ as an amendment to the Sherman Act.

Accepted Answer

A)  Clayton Act 
B)  Fair Credit Billing Act 
C)  Securities Act 
D)  Truth in Lending Act 
E)  Robinson-Patman Act 
A)  Clayton Act 
B)  Fair Credit Billing Act 
C)  Securities Act 
D)  Truth in Lending Act 
E)  Robinson-Patman Act

Question 14

The ______,a measure of market concentration,squares the market share of each firm in a market and adds them together for a final number.

Accepted Answer

A)  Noerr-Pennington Index 
B)  Producer Price Index 
C)  Consumer Price Index 
D)  Herfindahl-Hirschman Index 
E)  Big Mac Index 
A)  Noerr-Pennington Index 
B)  Producer Price Index 
C)  Consumer Price Index 
D)  Herfindahl-Hirschman Index 
E)  Big Mac Index

Question 15

What can be avoided if a defendant in a criminal antitrust suit enters a plea of nolo contendere?

Accepted Answer

If a defendant in a criminal antitrust s

Question 16

For a seller's pricing to be considered predatory conduct,there must be proof that

Accepted Answer

A)  the seller was selling the product at a price above the cost price. 
B)  the prices were intended to drive competitors out of business followed by the wrongdoer recouping the initial losses. 
C)  the prices were higher than those of all competitors within the same product group. 
D)  the buyers were willing to buy a product at the seller's prices despite having a wide range of options. 
E)  a buyer had other options in the same product line available in different price ranges. 
A)  the seller was selling the product at a price above the cost price. 
B)  the prices were intended to drive competitors out of business followed by the wrongdoer recouping the initial losses. 
C)  the prices were higher than those of all competitors within the same product group. 
D)  the buyers were willing to buy a product at the seller's prices despite having a wide range of options. 
E)  a buyer had other options in the same product line available in different price ranges.

Question 17

Which of the following statements is true of monopoly power?

Accepted Answer

A)  Mere possession of monopoly power violates Section 1 of the Sherman Act. 
B)  If monopoly power is thrust upon a firm, there is a violation Section 2 of the Sherman Act. 
C)  Monopoly power which exists because of a patent or franchise violates the Clayton Act. 
D)  If a firm engages in conduct that has the effect of extending its monopoly power, it does not violate the Sherman Act. 
E)  Proof of monopoly power alone is insufficient to qualify as a violation of the Sherman Act. 
A)  Mere possession of monopoly power violates Section 1 of the Sherman Act. 
B)  If monopoly power is thrust upon a firm, there is a violation Section 2 of the Sherman Act. 
C)  Monopoly power which exists because of a patent or franchise violates the Clayton Act. 
D)  If a firm engages in conduct that has the effect of extending its monopoly power, it does not violate the Sherman Act. 
E)  Proof of monopoly power alone is insufficient to qualify as a violation of the Sherman Act.

Question 18

Which of the following statements is true of the Clayton Act?

Accepted Answer

A)  The original Clayton Act contained no sanction for forfeiture of property. 
B)  The original Clayton Act did not allow individuals to obtain injunctive relief. 
C)  The Clayton Act permits price fixing. 
D)  The Clayton Act has prohibited a plaintiff's claim to triple damages. 
E)  The Clayton Act allows companies to extend their monopoly power. 
A)  The original Clayton Act contained no sanction for forfeiture of property. 
B)  The original Clayton Act did not allow individuals to obtain injunctive relief. 
C)  The Clayton Act permits price fixing. 
D)  The Clayton Act has prohibited a plaintiff's claim to triple damages. 
E)  The Clayton Act allows companies to extend their monopoly power.

Question 19

Briefly explain the provision of triple damages under Section 4 of the Clayton Act.

Accepted Answer

The Sherman Act as amended by the Clayto

Question 20

What is the purpose of the industry guides issued by the Federal Trade Commission?

Accepted Answer

The Federal Trade Commission (FTC)period

Exam 16: Regulating Competitionantitrust Laws

Territorial arrangements within channels of distribution are analyzed under the rule of reason.

If there are four firms in a market,each with a 25 percent share,the final Herfindahl-Hirschman Index is ______.

In a 1943 case known as Parker v.Brown,the Supreme Court created a ______ to the Sherman Act.

Which of the following is an exemption from the Sherman Act that extends to concerted efforts to lobby government officials?

Which of the following statements is true of the Sherman Act?

Some monopolies are lawful.

It now appears the Supreme Court is comfortable limiting the per se illegality analysis to vertical agreements among competitors.

What led to the enactment of the Sherman Act in 1890?

What are concerted activities?

In ______,a form of tying arrangement,a seller compels a buyer or lessee to take a complete product range from the seller.

The Federal Trade Commission prevents wrongful actions by the use of cease and desist orders.

In 1914,Congress,recognizing that the Sherman Act needed to be more specific,enacted the ______ as an amendment to the Sherman Act.

The ______,a measure of market concentration,squares the market share of each firm in a market and adds them together for a final number.

What can be avoided if a defendant in a criminal antitrust suit enters a plea of nolo contendere?

For a seller's pricing to be considered predatory conduct,there must be proof that

Which of the following statements is true of monopoly power?

Which of the following statements is true of the Clayton Act?

Briefly explain the provision of triple damages under Section 4 of the Clayton Act.

What is the purpose of the industry guides issued by the Federal Trade Commission?

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