Question 1

Which of the following statements is true of the triple damages awarded to the injured parties under the Sherman Act?

Accepted Answer

A)  Triple damages apply only to individuals, and not corporations or larger institutions. 
B)  The government cannot directly or indirectly receive triple damages. 
C)  Triple damages are only meant to compensate a plaintiff for actual injury. 
D)  Only injured members of the general public can enforce the law. 
E)  Legislation allows both federal and state governments to file a suit for triple damages. 
A)  Triple damages apply only to individuals, and not corporations or larger institutions. 
B)  The government cannot directly or indirectly receive triple damages. 
C)  Triple damages are only meant to compensate a plaintiff for actual injury. 
D)  Only injured members of the general public can enforce the law. 
E)  Legislation allows both federal and state governments to file a suit for triple damages.

Question 2

Game designers Troy and Jeff have designed a new computer game system.This system is manufactured and sold by their company,GameTech Corp.The game system they devised uses new technology that they created and their system far exceeds the capabilities of any current gaming systems.This gives them a monopoly in the gaming market.Which of the following statements is true in this scenario?

Accepted Answer

A)  GameTech is guilty of engaging in predatory conduct. 
B)  GameTech has monopoly power that violates the Sherman Act. 
C)  GameTech has monopoly power that violates the Clayton Act but not the Sherman Act. 
D)  GameTech has monopoly power that does not violate the Sherman Act. 
E)  GameTech is guilty of monopoly that violates both the Clayton and Sherman Act. 
A)  GameTech is guilty of engaging in predatory conduct. 
B)  GameTech has monopoly power that violates the Sherman Act. 
C)  GameTech has monopoly power that violates the Clayton Act but not the Sherman Act. 
D)  GameTech has monopoly power that does not violate the Sherman Act. 
E)  GameTech is guilty of monopoly that violates both the Clayton and Sherman Act.

Question 3

What are the three major questions that the Federal Trade Commission asks to check if there is deception or antitrust violation involved?

Accepted Answer

To decide whether challenged business co

Question 4

The president of a bottling company agreed with a competitor to stop discounts to retailers,which earned him a jail sentence.Which of the following is indicated in this scenario?

Accepted Answer

A)  variable pricing 
B)  product bundling 
C)  mixed-leader bundling 
D)  predatory conduct 
E)  horizontal price fixing 
A)  variable pricing 
B)  product bundling 
C)  mixed-leader bundling 
D)  predatory conduct 
E)  horizontal price fixing

Question 5

An individual found guilty under the Sherman Act may be fined up to ______.

Accepted Answer

A)  $1 million 
B)  $5 million 
C)  $100 million 
D)  $50 million 
E)  $30 million 
A)  $1 million 
B)  $5 million 
C)  $100 million 
D)  $50 million 
E)  $30 million

Question 6

For the purpose of giving each an exclusive territory,competing businesses may enter into a ______.

Accepted Answer

A)  bilateral territorial agreement 
B)  vertical territorial agreement 
C)  horizontal territorial agreement 
D)  competitive territorial agreement 
E)  congeneric territorial agreement 
A)  bilateral territorial agreement 
B)  vertical territorial agreement 
C)  horizontal territorial agreement 
D)  competitive territorial agreement 
E)  congeneric territorial agreement

Question 7

In 1976,the Hart-Scott-Rodino Antitrust Improvements Act was passed to provide for ______.

Accepted Answer

A)  premerger notification 
B)  reciprocal dealing 
C)  merger extension rights 
D)  post-merger bailout 
E)  full-line forcing 
A)  premerger notification 
B)  reciprocal dealing 
C)  merger extension rights 
D)  post-merger bailout 
E)  full-line forcing

Question 8

Briefly explain the concept of predatory conduct in trade.

Accepted Answer

Predatory conduct is seeking to advance

Question 9

Sifco Inc.,a tire manufacturing company,stipulates that Rambox Corp.should buy its entire line of Roadgrip tires.Sifco has significant market power in a particular variety of Roadgrip tires for which no substitutes are available in the market.It uses this power to its advantage and does not agree to let Rambox buy less than the entire line of Roadgrip tires.The sales contract between Sifco and Rambox is an example of a ______.

Accepted Answer

A)  tying arrangement 
B)  reciprocal dealing arrangement 
C)  rescission contract 
D)  premerger arrangement 
E)  justification contract 
A)  tying arrangement 
B)  reciprocal dealing arrangement 
C)  rescission contract 
D)  premerger arrangement 
E)  justification contract

Question 10

Attempts by manufacturers to control the ultimate retail prices are known as ______.

Accepted Answer

A)  transfer price fixing 
B)  vertical price fixing 
C)  lateral price fixing 
D)  congestion price fixing 
E)  rational price fixing 
A)  transfer price fixing 
B)  vertical price fixing 
C)  lateral price fixing 
D)  congestion price fixing 
E)  rational price fixing

Question 11

Mobi Telecom Inc.and Broadcom Inc.are manufactures of cell phones competing in the same markets.If Broadcom decides to acquire and merge with Mobi,the merger is most likely to be called a ______.

Accepted Answer

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

Question 12

Which of the following statements is true of the antitrust enforcement in the European Union (EU)?

Accepted Answer

A)  Fines for violating EU antitrust law are much less than those in the United States. 
B)  The EU may impose fines for business practices that do not violate U.S. law. 
C)  The EU can impose a maximum fine of 1 billion euros. 
D)  The European Commission does not have the power to change business practices related to activities that do not violate U.S. law. 
E)  The decisions of the European Commission must mirror that of the U.S. Government. . 
A)  Fines for violating EU antitrust law are much less than those in the United States. 
B)  The EU may impose fines for business practices that do not violate U.S. law. 
C)  The EU can impose a maximum fine of 1 billion euros. 
D)  The European Commission does not have the power to change business practices related to activities that do not violate U.S. law. 
E)  The decisions of the European Commission must mirror that of the U.S. Government. .

Question 13

To analyze potential violations of the Sherman Act,the test of reasonableness asks whether challenged contracts or acts are unreasonably restrictive of competitive conditions.

Accepted Answer

A) True 
 B)False

Question 14

When competitors attempt to share some activities or join together in the performance of a function,they are performing ______.

Accepted Answer

A)  derivative activities 
B)  appellate activities 
C)  preemptive activities 
D)  arbitrated activities 
E)  concerted activities 
A)  derivative activities 
B)  appellate activities 
C)  preemptive activities 
D)  arbitrated activities 
E)  concerted activities

Question 15

A corporation found guilty under the Sherman Act may be fined up to ______ for each offense.

Accepted Answer

A)  $10 million 
B)  $1 million 
C)  $100 million 
D)  $500 million 
E)  $300 million 
A)  $10 million 
B)  $1 million 
C)  $100 million 
D)  $500 million 
E)  $300 million

Question 16

According to the per se rule,price fixing is illegal only when the parties to the price fixing agreement have control of a market.

Accepted Answer

A) True 
 B)False

Question 17

The ______ made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Act.

Accepted Answer

A)  Celler-Kefauver amendment 
B)  Noerr-Pennington amendment 
C)  Herfindahl-Hirschman amendment 
D)  Robinson-Patman amendment 
E)  Wheeler-Lea amendment 
A)  Celler-Kefauver amendment 
B)  Noerr-Pennington amendment 
C)  Herfindahl-Hirschman amendment 
D)  Robinson-Patman amendment 
E)  Wheeler-Lea amendment

Question 18

Concerted activities are illegal as they are always harmful to the society.

Accepted Answer

A) True 
 B)False

Question 19

Under the Colgate doctrine,the Supreme Court recognizes that

Accepted Answer

A)  individuals are allowed to engage in horizontal price fixing. 
B)  a franchisor can require that franchisees purchase all of its equipment and inventory. 
C)  resale price maintenance is illegal. 
D)  individuals are allowed to engage in horizontal price fixing for provision of services. 
E)  manufacturers can announce their prices and refuse to deal with those who fail to comply. 
A)  individuals are allowed to engage in horizontal price fixing. 
B)  a franchisor can require that franchisees purchase all of its equipment and inventory. 
C)  resale price maintenance is illegal. 
D)  individuals are allowed to engage in horizontal price fixing for provision of services. 
E)  manufacturers can announce their prices and refuse to deal with those who fail to comply.

Question 20

Horizontal price fixing is not illegal per se under the Sherman Act.

Accepted Answer

A) True 
 B)False

Which of the following statements is true of the triple damages awarded to the injured parties under the Sherman Act?

What are the three major questions that the Federal Trade Commission asks to check if there is deception or antitrust violation involved?

The president of a bottling company agreed with a competitor to stop discounts to retailers,which earned him a jail sentence.Which of the following is indicated in this scenario?

An individual found guilty under the Sherman Act may be fined up to ______.

For the purpose of giving each an exclusive territory,competing businesses may enter into a ______.

In 1976,the Hart-Scott-Rodino Antitrust Improvements Act was passed to provide for ______.

Briefly explain the concept of predatory conduct in trade.

Attempts by manufacturers to control the ultimate retail prices are known as ______.

Mobi Telecom Inc.and Broadcom Inc.are manufactures of cell phones competing in the same markets.If Broadcom decides to acquire and merge with Mobi,the merger is most likely to be called a ______.

Which of the following statements is true of the antitrust enforcement in the European Union (EU)?

To analyze potential violations of the Sherman Act,the test of reasonableness asks whether challenged contracts or acts are unreasonably restrictive of competitive conditions.

When competitors attempt to share some activities or join together in the performance of a function,they are performing ______.

A corporation found guilty under the Sherman Act may be fined up to ______ for each offense.

According to the per se rule,price fixing is illegal only when the parties to the price fixing agreement have control of a market.

The ______ made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Act.

Concerted activities are illegal as they are always harmful to the society.

Under the Colgate doctrine,the Supreme Court recognizes that

Horizontal price fixing is not illegal per se under the Sherman Act.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

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Exam 16: Regulating Competitionantitrust Laws

Which of the following statements is true of the triple damages awarded to the injured parties under the Sherman Act?

What are the three major questions that the Federal Trade Commission asks to check if there is deception or antitrust violation involved?

The president of a bottling company agreed with a competitor to stop discounts to retailers,which earned him a jail sentence.Which of the following is indicated in this scenario?

An individual found guilty under the Sherman Act may be fined up to ______.

For the purpose of giving each an exclusive territory,competing businesses may enter into a ______.

In 1976,the Hart-Scott-Rodino Antitrust Improvements Act was passed to provide for ______.

Briefly explain the concept of predatory conduct in trade.

Attempts by manufacturers to control the ultimate retail prices are known as ______.

Mobi Telecom Inc.and Broadcom Inc.are manufactures of cell phones competing in the same markets.If Broadcom decides to acquire and merge with Mobi,the merger is most likely to be called a ______.

Which of the following statements is true of the antitrust enforcement in the European Union (EU)?

To analyze potential violations of the Sherman Act,the test of reasonableness asks whether challenged contracts or acts are unreasonably restrictive of competitive conditions.

When competitors attempt to share some activities or join together in the performance of a function,they are performing ______.

A corporation found guilty under the Sherman Act may be fined up to ______ for each offense.

According to the per se rule,price fixing is illegal only when the parties to the price fixing agreement have control of a market.

The ______ made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Act.

Concerted activities are illegal as they are always harmful to the society.

Under the Colgate doctrine,the Supreme Court recognizes that

Horizontal price fixing is not illegal per se under the Sherman Act.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters