Question 1

Section 2 of the Sherman Act outlaws monopolies because monopolists have the power to fix prices unilaterally.

Accepted Answer

A) True 
 B)False

Question 2

The following statements pertain to alleged violations of Section 1 of the Sherman Act.Which statement is accurate?

Accepted Answer

A) Although tying agreements are classified as per se violations of Section 1,the judicial treatment given to them differs from pure per se treatment. 
B) Because vertical restraints on distribution necessarily harm intrabrand competition,they are considered per se violations of Section 1. 
C) Because group boycotts amount to reprehensible conduct that cannot have competitive justification,all such agreements are considered per se violations of Section 1. 
D) Although concerted action ordinarily has been required in order for there to have been a violation of Section 1,the Supreme Court recently dispensed with the requirement in price-fixing cases. 
A) Although tying agreements are classified as per se violations of Section 1,the judicial treatment given to them differs from pure per se treatment. 
B) Because vertical restraints on distribution necessarily harm intrabrand competition,they are considered per se violations of Section 1. 
C) Because group boycotts amount to reprehensible conduct that cannot have competitive justification,all such agreements are considered per se violations of Section 1. 
D) Although concerted action ordinarily has been required in order for there to have been a violation of Section 1,the Supreme Court recently dispensed with the requirement in price-fixing cases.

Question 3

Intent to monopolize is necessary to prove a violation under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following applies federal antitrust laws to only behavior having some significant impact on interstate or foreign business?

Accepted Answer

A) The Clayton Act 
B) The Sherman Act 
C) Federal Trade Commission Act 
D) The Commerce Clause of the U.S.Constitution 
A) The Clayton Act 
B) The Sherman Act 
C) Federal Trade Commission Act 
D) The Commerce Clause of the U.S.Constitution

Question 5

The National Cooperative Research Act (NCRA)that applies to joint research and development ventures (JRDVs):

Accepted Answer

A) provides that treble damages may be recovered for losses flowing from a JRDV ultimately found to be in violation of Section 1 of the Sherman Act. 
B) requires firms contemplating a JRDV to provide the Department of Justice and the Federal Trade Commission with advance notice of their intent to do so. 
C) lacks provisions to allow the parties to a challenged JRDV to recover attorney's fees from an unsuccessful challenger. 
D) requires application of a per se rule,rather than a reasonableness standard,when a JRDV's legality is determined. 
A) provides that treble damages may be recovered for losses flowing from a JRDV ultimately found to be in violation of Section 1 of the Sherman Act. 
B) requires firms contemplating a JRDV to provide the Department of Justice and the Federal Trade Commission with advance notice of their intent to do so. 
C) lacks provisions to allow the parties to a challenged JRDV to recover attorney's fees from an unsuccessful challenger. 
D) requires application of a per se rule,rather than a reasonableness standard,when a JRDV's legality is determined.

Question 6

Sherman Act violations may give rise to civil litigation only.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following has no other purpose or effect except to restrain competition?

Accepted Answer

A) Naked vertical restraints 
B) Naked horizontal restraints 
C) Ancillary vertical restraints 
D) Ancillary horizontal restraints 
A) Naked vertical restraints 
B) Naked horizontal restraints 
C) Ancillary vertical restraints 
D) Ancillary horizontal restraints

Question 8

Which of the following situations is most likely to be deemed in violation of Section 2 of the Sherman Act?

Accepted Answer

A) Intent to monopolize 
B) Attempted monopolization 
C) Misdirected monopolization 
D) Conspiracy to monopolize 
A) Intent to monopolize 
B) Attempted monopolization 
C) Misdirected monopolization 
D) Conspiracy to monopolize

Question 9

Courts tend to treat ________ similarly because they are similar in motivation and effect.

Accepted Answer

A) exclusive dealing agreements and reciprocal dealing agreements 
B) joint venture agreements and exclusive dealing agreements 
C) joint venture agreements and tying agreements 
D) reciprocal dealing agreements and tying agreements 
A) exclusive dealing agreements and reciprocal dealing agreements 
B) joint venture agreements and exclusive dealing agreements 
C) joint venture agreements and tying agreements 
D) reciprocal dealing agreements and tying agreements

Question 10

Overbearing,Inc. ,which manufactures ball bearings,has built up a network of wholesale dealers.Under agreements between Overbearing and various dealers,each dealer has an established geographical territory of operation.These agreements also call for the individual dealers not to compete in another Overbearing dealer's exclusive territory.An appropriate plaintiff has sued Overbearing on the theory that these agreements violate Section 1 of the Sherman Act.What treatment will the court give the agreements? Why? Under that treatment,is it possible for Overbearing to avoid liability even if the plaintiff establishes the existence of the agreements? If so,how?

Accepted Answer

Because the agreements are vertical rest

Question 11

As per the Colgate doctrine,a manufacturer cannot unilaterally refuse to deal with those who fail to follow the manufacturer's suggested resale prices.

Accepted Answer

A) True 
 B)False

Question 12

When is proof of joint action required for violation of Section 1 of Sherman Act?

Accepted Answer

A) When a firm enters into an exclusive dealing agreement with a supplier. 
B) When more than one firm is charged with a conspiracy to monopolize. 
C) Charges of monopolization do not require any proof of joint action. 
D) When a firm possesses not only monopoly power but also intent to monopolize. 
A) When a firm enters into an exclusive dealing agreement with a supplier. 
B) When more than one firm is charged with a conspiracy to monopolize. 
C) Charges of monopolization do not require any proof of joint action. 
D) When a firm possesses not only monopoly power but also intent to monopolize.

Question 13

SuperMart Inc.operates a franchise operation.Mr.Jones purchased a right to open a SuperMart but the agreement has a vertical restraint,Mr.Jones is not allowed to market or seek customers beyond 25 miles of his franchise store.This agreement is per se illegal.

Accepted Answer

A) True 
 B)False

Question 14

Before a court can determine a defendant's market share,it must first define the relevant market.One of the components of a relevant market determination is the relevant:

Accepted Answer

A) resource market. 
B) supply market. 
C) geographic market. 
D) competitive market. 
A) resource market. 
B) supply market. 
C) geographic market. 
D) competitive market.

Question 15

In analyzing vertical restraints on distribution,courts today will apply what analysis?

Accepted Answer

A) The rule of reason 
B) Finding that any evidence of vertical restraint is per se illegal 
C) Federal courts will not consider issue,deferring it to international courts 
D) Applying the strict scrutiny test 
A) The rule of reason 
B) Finding that any evidence of vertical restraint is per se illegal 
C) Federal courts will not consider issue,deferring it to international courts 
D) Applying the strict scrutiny test

Question 16

The passage of the antitrust laws reflected a congressional assumption that competition was most likely to exist in an oligopolistic industrial structure.

Accepted Answer

A) True 
 B)False

Question 17

________ agreements reduce a manufacturer's sales costs and provide dealers with a secure source of supply.

Accepted Answer

A) Joint venture 
B) Exclusive dealing 
C) Reciprocal dealing 
D) Formal written 
A) Joint venture 
B) Exclusive dealing 
C) Reciprocal dealing 
D) Formal written

Question 18

Methods of antitrust analysis are commonly called Chicago School theories because many of their major premises were advanced by scholars affiliated with:

Accepted Answer

A) Loyola University. 
B) Chicago State University. 
C) the University of Chicago. 
D) the University of Illinois at Chicago. 
A) Loyola University. 
B) Chicago State University. 
C) the University of Chicago. 
D) the University of Illinois at Chicago.

Question 19

It is per se illegal for competitors to make an agreement to split up a geographical area and not to directly compete against each other.

Accepted Answer

A) True 
 B)False

Question 20

A nolo plea or a consent decree is often attractive to antitrust defendants because:

Accepted Answer

A) the government must prove criminal intent on the defendant's part. 
B) it results in an imposition of a penalty without requiring a defendant to remedy his actions. 
C) it is not admissible as proof of a violation of the Sherman Act in a private plaintiff's later civil suit. 
D) it does not attract the same penalty as a guilty plea or a conviction at trial. 
A) the government must prove criminal intent on the defendant's part. 
B) it results in an imposition of a penalty without requiring a defendant to remedy his actions. 
C) it is not admissible as proof of a violation of the Sherman Act in a private plaintiff's later civil suit. 
D) it does not attract the same penalty as a guilty plea or a conviction at trial.

Exam 49: Antitrust: the Sherman Act

Section 2 of the Sherman Act outlaws monopolies because monopolists have the power to fix prices unilaterally.

The following statements pertain to alleged violations of Section 1 of the Sherman Act.Which statement is accurate?

Intent to monopolize is necessary to prove a violation under the Sherman Act.

Which of the following applies federal antitrust laws to only behavior having some significant impact on interstate or foreign business?

The National Cooperative Research Act (NCRA)that applies to joint research and development ventures (JRDVs):

Sherman Act violations may give rise to civil litigation only.

Which of the following has no other purpose or effect except to restrain competition?

Which of the following situations is most likely to be deemed in violation of Section 2 of the Sherman Act?

Courts tend to treat ________ similarly because they are similar in motivation and effect.

As per the Colgate doctrine,a manufacturer cannot unilaterally refuse to deal with those who fail to follow the manufacturer's suggested resale prices.

When is proof of joint action required for violation of Section 1 of Sherman Act?

SuperMart Inc.operates a franchise operation.Mr.Jones purchased a right to open a SuperMart but the agreement has a vertical restraint,Mr.Jones is not allowed to market or seek customers beyond 25 miles of his franchise store.This agreement is per se illegal.

Before a court can determine a defendant's market share,it must first define the relevant market.One of the components of a relevant market determination is the relevant:

In analyzing vertical restraints on distribution,courts today will apply what analysis?

The passage of the antitrust laws reflected a congressional assumption that competition was most likely to exist in an oligopolistic industrial structure.

________ agreements reduce a manufacturer's sales costs and provide dealers with a secure source of supply.

Methods of antitrust analysis are commonly called Chicago School theories because many of their major premises were advanced by scholars affiliated with:

It is per se illegal for competitors to make an agreement to split up a geographical area and not to directly compete against each other.

A nolo plea or a consent decree is often attractive to antitrust defendants because:

The Nature of Law

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Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

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Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

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Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

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Product Liability

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Negotiation and Holder in Due Course

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