Exam 49: Antitrust: the Sherman Act

Foreign firms that are ________ in the U.S.domestic commerce are subject to federal antitrust jurisdiction.

The relevant product market is composed of those products meeting the functional interchangeability test.

Which of the following situations is most likely a case of Sherman Act Section 1 violation?

Dee Frost,president of the American Refrigerator and Freezer Producers Association (ARFPA)and CEO of Frozenaire Corp.(one of the nation's largest manufacturers of refrigerators and freezers),delivered the keynote address at the ARFPA's annual convention in Siberia,Montana.In her speech,Frost addressed the assembled members on the "credit sales" problem currently confronting the industry.According to Frost,this problem was a result of refrigerator and freezer manufacturers' increasing tendency to sell appliances on credit instead of requiring payment in full upon delivery-a tendency that,in Frost's view,had led to negative price trends in the industry.Frost asserted that if refrigerator and freezer producers would refuse to permit credit sales and would insist upon payment in full upon delivery,prices would return to "a reasonable level that serves the interests of the industry and consumers." She concluded her remarks by assuring those in attendance that Frozenaire would do its part by "unilaterally saying 'sorry,pardner' to requests for purchases on credit." A few months after the ARFPA meeting,the U.S.Justice Department filed a Sherman Act Section 1 lawsuit against Frozenaire and the other ARFPA members,citing evidence that all ARFPA members eliminated credit sales within one month after the meeting.Is the Justice Department's action proper? Explain your reasoning.

Which of the following has been recognized by the courts as a possible justification for tying agreements?

The Sherman Act provides that individuals criminally convicted of violating it may be:

Chicago School advocates view ________ as the primary,if not sole,goal of antitrust enforcement.

The level of criminal intent required for a Sherman Act violation is:

A domestic corporation attempting to monopolize outside the United States with foreign nations is guilty of a crime under the Sherman Act.

The activities of a corporation and its wholly owned subsidiary will not constitute the concerted action necessary for a violation of Section 1 of the Sherman Act.