Question 1

The Clayton Act prohibits price discrimination.

Accepted Answer

A) True 
 B)False  True

Question 2

Disc & Shoe Brakes Corporation, a brake manufacturer, sells its products to Eastside Motors, a retailer, at lower prices than it charges Fast Brake, a competitive retailer. This price discrimination is legal​

Accepted Answer

A)  ​under any circumstances. 
B)  unless its effect is to cause a competitor a loss of any business. 
C)  ​unless its effect is to substantially lessen competition. 
D)  ​unless there is no effect on a competitor. 
A)  ​under any circumstances. 
B)  unless its effect is to cause a competitor a loss of any business. 
C)  ​unless its effect is to substantially lessen competition. 
D)  ​unless there is no effect on a competitor. C

Question 3

The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is​

Accepted Answer

A)  ​a situation that neither restrains trade nor harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of antitrust law. 
D)  ​subject to analysis under the rule of reason. 
A)  ​a situation that neither restrains trade nor harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of antitrust law. 
D)  ​subject to analysis under the rule of reason. C

Question 4

The market-share test measures a firm's percentage share of a market.

Accepted Answer

A) True 
 B)False

Question 5

By contract, Oil Shale Corporation forbids Petro, Inc., a wholesale buyer of Oil Shale's products, from purchasing the products of its competitors. This exclusive-dealing contract is allowed​

Accepted Answer

A)  ​under any circumstances. 
B)  ​if its effect is to cause a competitor a loss of any business. 
C)  ​if its effect is to substantially lessen competition. 
D)  ​unless there is no effect on a competitor. 
A)  ​under any circumstances. 
B)  ​if its effect is to cause a competitor a loss of any business. 
C)  ​if its effect is to substantially lessen competition. 
D)  ​unless there is no effect on a competitor.

Question 6

Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is​

Accepted Answer

A)  ​a deal that inherently neither restrains trade nor harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of antitrust law. 
D)  ​subject to analysis under the rule of reason. 
A)  ​a deal that inherently neither restrains trade nor harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of antitrust law. 
D)  ​subject to analysis under the rule of reason.

Question 7

Frozen Confections Corporation makes and sells ice cream under a variety of brand names. Frozen Fruit wants to merge with Grocers Iced Products Company, its main competitor. In weighing a challenge to the deal, a court looks at the relevant product market. This most likely includes ice cream and​

Accepted Answer

A)  ​no other products. 
B)  ​products that are not identical but are related, such as spin-offs. 
C)  ​products that are reasonably interchangeable. 
D)  ​products with identical attributes only. 
A)  ​no other products. 
B)  ​products that are not identical but are related, such as spin-offs. 
C)  ​products that are reasonably interchangeable. 
D)  ​products with identical attributes only.

Question 8

Ranchland Supplies Corporation believes that Stock & Equipment Corporation engages in anticompetitive behavior in an attempt to drive Ranchland, its chief competitor, out of the market. Antitrust laws can be enforced against Stock & Equipment by​

Accepted Answer

A)  ​only a disinterested third party. 
B)  ​Congress. 
C)  ​Ranchland. 
D)  ​none of the choices. 
A)  ​only a disinterested third party. 
B)  ​Congress. 
C)  ​Ranchland. 
D)  ​none of the choices.

Question 9

Fact Pattern 26-1
Pharma Corporation makes and sells QualMed, the most prescribed name-brand blood pressure-lowering medication. Renew Drugs, Inc., has the potential to make a generic version of the same drug.
-Refer to Fact Pattern 26-1.Pharma pays Renew not to sell its product. This is​

Accepted Answer

A)  ​a market division. 
B)  ​a refusal to deal. 
C)  ​an exclusive-dealing contract. 
D)  ​a price-fixing agreement. 
A)  ​a market division. 
B)  ​a refusal to deal. 
C)  ​an exclusive-dealing contract. 
D)  ​a price-fixing agreement.

Question 10

A trade association practice or agreement that restrains trade is analyzed under the rule of reason.

Accepted Answer

A) True 
 B)False

Question 11

Able Excavators, Inc., is the major wholesale distributor of heavy equipment in the state of Georgia. Its closest competitor is Big Machine Company, another Georgia firm. The two firms agree that Able will operate in southern Georgia and Big will operate in northern Georgia. This is​

Accepted Answer

A)  ​a group boycott. 
B)  ​a market division. 
C)  ​a price-fixing agreement. 
D)  ​a tying arrangement. 
A)  ​a group boycott. 
B)  ​a market division. 
C)  ​a price-fixing agreement. 
D)  ​a tying arrangement.

Question 12

A firm is not a monopolist unless it is the sole seller in a market.

Accepted Answer

A) True 
 B)False

Question 13

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Accepted Answer

A) True 
 B)False

Question 14

Price discrimination occurs when a seller charges different prices to competing buyers for identical goods or services.

Accepted Answer

A) True 
 B)False

Question 15

Under what circumstances would Small's Market, a little store in Rustic, an isolated town, be considered a monopoly? If Small's Market is a monopoly, is it in violation of antitrust law?​

Accepted Answer

The elements of the offense of monopoliz

Question 16

Resale price maintenance agreements are per se violations of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 17

Earthgro, Inc., is one of many producers of cut flowers. Earthgro refuses to sell its products to Florist Shops Corporation. Under antitrust law, this refusal is most likely​

Accepted Answer

A)  ​a per se violation. 
B)  a violation if its competitors make similar deals. 
C)  ​a violation if it thereby acquires monopoly power. 
D)  ​not a violation. 
A)  ​a per se violation. 
B)  a violation if its competitors make similar deals. 
C)  ​a violation if it thereby acquires monopoly power. 
D)  ​not a violation.

Question 18

To prevent its competitors from obtaining sufficient supplies to make their products, Continental Steel, Inc., uses its market power to increase the prices of those supplies. This is​

Accepted Answer

A)  ​price discrimination. 
B)  ​business judgment. 
C)  ​predatory bidding. 
D)  ​predatory pricing. 
A)  ​price discrimination. 
B)  ​business judgment. 
C)  ​predatory bidding. 
D)  ​predatory pricing.

Question 19

Through smart business management, Harvest Bakery obtains monopoly power in its market. This is​

Accepted Answer

A)  ​a per se violation of Section 1 of the Sherman Act. 
B)  ​an illegal restraint on trade. 
C)  ​not an antitrust violation. 
D)  ​a per se violation of Section 2 of the Sherman Act. 
A)  ​a per se violation of Section 1 of the Sherman Act. 
B)  ​an illegal restraint on trade. 
C)  ​not an antitrust violation. 
D)  ​a per se violation of Section 2 of the Sherman Act.

Question 20

A restraint of trade is an agreement between firms that has the effect of reducing anticompetitive business practices.

Accepted Answer

A) True 
 B)False

Exam 26: Antitrust Law

The Clayton Act prohibits price discrimination.

Disc & Shoe Brakes Corporation, a brake manufacturer, sells its products to Eastside Motors, a retailer, at lower prices than it charges Fast Brake, a competitive retailer. This price discrimination is legal​

The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is​

The market-share test measures a firm's percentage share of a market.

By contract, Oil Shale Corporation forbids Petro, Inc., a wholesale buyer of Oil Shale's products, from purchasing the products of its competitors. This exclusive-dealing contract is allowed​

Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is​

Frozen Confections Corporation makes and sells ice cream under a variety of brand names. Frozen Fruit wants to merge with Grocers Iced Products Company, its main competitor. In weighing a challenge to the deal, a court looks at the relevant product market. This most likely includes ice cream and​

Ranchland Supplies Corporation believes that Stock & Equipment Corporation engages in anticompetitive behavior in an attempt to drive Ranchland, its chief competitor, out of the market. Antitrust laws can be enforced against Stock & Equipment by​

Fact Pattern 26-1 Pharma Corporation makes and sells QualMed, the most prescribed name-brand blood pressure-lowering medication. Renew Drugs, Inc., has the potential to make a generic version of the same drug. -Refer to Fact Pattern 26-1.Pharma pays Renew not to sell its product. This is​

A trade association practice or agreement that restrains trade is analyzed under the rule of reason.

Able Excavators, Inc., is the major wholesale distributor of heavy equipment in the state of Georgia. Its closest competitor is Big Machine Company, another Georgia firm. The two firms agree that Able will operate in southern Georgia and Big will operate in northern Georgia. This is​

A firm is not a monopolist unless it is the sole seller in a market.

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Price discrimination occurs when a seller charges different prices to competing buyers for identical goods or services.

Under what circumstances would Small's Market, a little store in Rustic, an isolated town, be considered a monopoly? If Small's Market is a monopoly, is it in violation of antitrust law?​

Resale price maintenance agreements are per se violations of the Sherman Act.

Earthgro, Inc., is one of many producers of cut flowers. Earthgro refuses to sell its products to Florist Shops Corporation. Under antitrust law, this refusal is most likely​

To prevent its competitors from obtaining sufficient supplies to make their products, Continental Steel, Inc., uses its market power to increase the prices of those supplies. This is​

Through smart business management, Harvest Bakery obtains monopoly power in its market. This is​

A restraint of trade is an agreement between firms that has the effect of reducing anticompetitive business practices.

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Digital Update:should Employees Have a Right of Disconnecting

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Digital Update:the Exploding World of Digital Property

Filters

Disc & Shoe Brakes Corporation, a brake manufacturer, sells its products to Eastside Motors, a retailer, at lower prices than it charges Fast Brake, a competitive retailer. This price discrimination is legal

The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is

By contract, Oil Shale Corporation forbids Petro, Inc., a wholesale buyer of Oil Shale's products, from purchasing the products of its competitors. This exclusive-dealing contract is allowed

Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is

Frozen Confections Corporation makes and sells ice cream under a variety of brand names. Frozen Fruit wants to merge with Grocers Iced Products Company, its main competitor. In weighing a challenge to the deal, a court looks at the relevant product market. This most likely includes ice cream and

Ranchland Supplies Corporation believes that Stock & Equipment Corporation engages in anticompetitive behavior in an attempt to drive Ranchland, its chief competitor, out of the market. Antitrust laws can be enforced against Stock & Equipment by

Fact Pattern 26-1 Pharma Corporation makes and sells QualMed, the most prescribed name-brand blood pressure-lowering medication. Renew Drugs, Inc., has the potential to make a generic version of the same drug. -Refer to Fact Pattern 26-1.Pharma pays Renew not to sell its product. This is

Able Excavators, Inc., is the major wholesale distributor of heavy equipment in the state of Georgia. Its closest competitor is Big Machine Company, another Georgia firm. The two firms agree that Able will operate in southern Georgia and Big will operate in northern Georgia. This is

Under what circumstances would Small's Market, a little store in Rustic, an isolated town, be considered a monopoly? If Small's Market is a monopoly, is it in violation of antitrust law?

Earthgro, Inc., is one of many producers of cut flowers. Earthgro refuses to sell its products to Florist Shops Corporation. Under antitrust law, this refusal is most likely

To prevent its competitors from obtaining sufficient supplies to make their products, Continental Steel, Inc., uses its market power to increase the prices of those supplies. This is

Through smart business management, Harvest Bakery obtains monopoly power in its market. This is