Question 1

A contract under which a seller forbids a buyer to purchase products from the seller's competitors is a tying arrangement.

Accepted Answer

A) True 
 B)False

Question 2

Agreements that are deemed per se violations of Section 1 of the Sherman Act include all of the following except​

Accepted Answer

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

Question 3

Monopoly power in and of itself constitutes the offense of monopolization.

Accepted Answer

A) True 
 B)False

Question 4

To acquire monopoly power in its market, Sugar, Inc., sets its prices substantially below the costs of production. Under antitrust law, this is​

Accepted Answer

A)  ​a per se violation. 
B)  ​a violation if the firm's competitors set similar prices. 
C)  ​a violation if the firm thereby acquires monopoly power. 
D)  ​not a violation. 
A)  ​a per se violation. 
B)  ​a violation if the firm's competitors set similar prices. 
C)  ​a violation if the firm thereby acquires monopoly power. 
D)  ​not a violation.

Question 5

Section 1 of the Sherman Act condemns monopolization.

Accepted Answer

A) True 
 B)False

Question 6

Domestic Oil Company joins with a foreign cartel to control the price of oil. The cartel has a substantial effect on U.S. commerce. A suit for violation of U.S. antitrust laws can be brought against​

Accepted Answer

A)  ​Domestic Oil and the foreign cartel. 
B)  ​the foreign cartel. 
C)  ​Domestic Oil. 
D)  ​all of the choices. 
A)  ​Domestic Oil and the foreign cartel. 
B)  ​the foreign cartel. 
C)  ​Domestic Oil. 
D)  ​all of the choices.

Question 7

Gas, Inc., and Oil Corporation refine and sell gasoline. To limit the supply of gas on the market and thereby raise prices, Gas and Oil agree to buy "excess" supplies from dealers and "dispose" of it. This is​

Accepted Answer

A)  ​a deal that neither restrains trade or harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of the Sherman Act. 
D)  ​subject to analysis under the rule of reason. 
A)  ​a deal that neither restrains trade or harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of the Sherman Act. 
D)  ​subject to analysis under the rule of reason.

Question 8

It is in society's interest to condemn every firm that acquires a position of power.

Accepted Answer

A) True 
 B)False

Question 9

Omni Discount Company and Price-Lo Stores, Inc., agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely​

Accepted Answer

A)  ​a common, legal, time-honored type of business arrangement. 
B)  ​an illegal restraint on trade. 
C)  ​an innovative, legally efficient approach to doing business. 
D)  ​an outdated, but legal business trust. 
A)  ​a common, legal, time-honored type of business arrangement. 
B)  ​an illegal restraint on trade. 
C)  ​an innovative, legally efficient approach to doing business. 
D)  ​an outdated, but legal business trust.

Question 10

Joint refusals to deal are not subject to scrutiny under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 11

An act must substantially affect interstate commerce to violate antitrust law.

Accepted Answer

A) True 
 B)False

Question 12

The U.S. Department of Justice can prosecute violations of all of the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 13

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.A court would most likely rule that the agreement between Pharma and Renew is​

Accepted Answer

A)  ​a deal that neither restrains trade or harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of the Sherman Act. 
D)  ​subject to analysis under the rule of reason. 
A)  ​a deal that neither restrains trade or harms competition. 
B)  ​a legal restraint of trade. 
C)  ​a per se violation of the Sherman Act. 
D)  ​subject to analysis under the rule of reason.

Question 14

Any conspiracy-even if it occurs outside the United States-that has a substantial effect on U.S. commerce is within the reach of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 15

Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is​

Accepted Answer

A)  ​a per se violation of antitrust law. 
B)  ​a legal restraint of trade. 
C)  ​subject to evaluation under the rule of reason. 
D)  ​not subject to antitrust law. 
A)  ​a per se violation of antitrust law. 
B)  ​a legal restraint of trade. 
C)  ​subject to evaluation under the rule of reason. 
D)  ​not subject to antitrust law.

Question 16

Precision Parts Corporation and Aligned Gears, Inc., are competitors selling certain machine parts that are otherwise generally unattainable in their geographic market. This market includes the states of Minnesota, North Dakota, and South Dakota. Precision Parts and Aligned Gears agree that Precision Parts will no longer sell in Minnesota and that Aligned Gears will no longer sell in North and South Dakota. Have Precision Parts and Aligned Gears violated any antitrust law? If so, which one? Explain. If they had divided their market by type of customer rather than geographic are, would the result be the same? Why or why not?

Accepted Answer

Precision Parts and Aligned Gears have v

Question 17

Pump Makers Inc. makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers. This is​

Accepted Answer

A)  ​an exclusive-dealing contract. 
B)  ​a tying arrangement. 
C)  ​price discrimination. 
D)  ​a group boycott. 
A)  ​an exclusive-dealing contract. 
B)  ​a tying arrangement. 
C)  ​price discrimination. 
D)  ​a group boycott.

Question 18

Territorial and customer restrictions are judged under the rule of reason.

Accepted Answer

A) True 
 B)False

Question 19

An agreement among competitors to fix prices is a per se violation of Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 20

Monopoly power may be proved by evidence that a firm used its power to control prices.

Accepted Answer

A) True 
 B)False

Exam 26: Antitrust Law

A contract under which a seller forbids a buyer to purchase products from the seller's competitors is a tying arrangement.

Agreements that are deemed per se violations of Section 1 of the Sherman Act include all of the following except​

Monopoly power in and of itself constitutes the offense of monopolization.

To acquire monopoly power in its market, Sugar, Inc., sets its prices substantially below the costs of production. Under antitrust law, this is​

Section 1 of the Sherman Act condemns monopolization.

Domestic Oil Company joins with a foreign cartel to control the price of oil. The cartel has a substantial effect on U.S. commerce. A suit for violation of U.S. antitrust laws can be brought against​

Gas, Inc., and Oil Corporation refine and sell gasoline. To limit the supply of gas on the market and thereby raise prices, Gas and Oil agree to buy "excess" supplies from dealers and "dispose" of it. This is​

It is in society's interest to condemn every firm that acquires a position of power.

Omni Discount Company and Price-Lo Stores, Inc., agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely​

Joint refusals to deal are not subject to scrutiny under the Sherman Act.

An act must substantially affect interstate commerce to violate antitrust law.

The U.S. Department of Justice can prosecute violations of all of the antitrust laws.

Any conspiracy-even if it occurs outside the United States-that has a substantial effect on U.S. commerce is within the reach of the Sherman Act.

Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is​

Pump Makers Inc. makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers. This is​

Territorial and customer restrictions are judged under the rule of reason.

An agreement among competitors to fix prices is a per se violation of Section 1 of the Sherman Act.

Monopoly power may be proved by evidence that a firm used its power to control prices.

Business Ethics

Small Businesses and Franchises

All Forms of Partnerships

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Corporate Directors, Officers, and Shareholders

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Employment Discrimination

The Formation of Sales and Lease Contracts

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Negotiable Instruments

Transferability and Holder in Due Course

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Banking in the Digital Age

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Digital Update:should Employees Have a Right of Disconnecting

Digital Update: Revenge Porn and Invasion of Privacy

Digital Update: Taxing Web Purchases

Ethics Today:what Are an Attorneys Responsibilities for Protecting Data Stored in a Cloud

Digital Update:the Exploding World of Digital Property

Filters

Agreements that are deemed per se violations of Section 1 of the Sherman Act include all of the following except

To acquire monopoly power in its market, Sugar, Inc., sets its prices substantially below the costs of production. Under antitrust law, this is

Domestic Oil Company joins with a foreign cartel to control the price of oil. The cartel has a substantial effect on U.S. commerce. A suit for violation of U.S. antitrust laws can be brought against

Gas, Inc., and Oil Corporation refine and sell gasoline. To limit the supply of gas on the market and thereby raise prices, Gas and Oil agree to buy "excess" supplies from dealers and "dispose" of it. This is

Omni Discount Company and Price-Lo Stores, Inc., agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely

Pads & Pods Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is

Pump Makers Inc. makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers. This is