Question 1

Explain the Hart-Scott-Rodino Act of 1976.

Accepted Answer

Mergers may present threats to competition, depending on the type of merger and the size and strength of the companies involved. The Hart-Scott-Rodino Act of 1976 was enacted to allow the Department of Justice (DOJ) to review these mergers before they were completed. This Act requires that notice of intent to merge between companies of a certain size must first be given to the DOJ. This gives the DOJ the opportunity to assess the effects the merger will have on the market, and to make recommendations as to whether the merger should go forward.

Question 2

An agreement among competitors to divide markets by territory:

Accepted Answer

A)  is analyzed under the rule of reason approach. 
B)  does not require a proof of agreement to be declared anticompetitive. 
C)  has a greater effect than even price fixing. 
D)  is not regarded by courts as being inherently unreasonable. 
A)  is analyzed under the rule of reason approach. 
B)  does not require a proof of agreement to be declared anticompetitive. 
C)  has a greater effect than even price fixing. 
D)  is not regarded by courts as being inherently unreasonable. C

Question 3

Describe Section 1 and Section 2 of the Sherman Antitrust Act. Which covers an oligopoly?

Accepted Answer

Section 1 of the Sherman Antitrust Act prohibits contracts, combinations, or conspiracies in restraint of trade or commerce and focuses on agreements made to restrain trade.
This language clearly requires at least two participants and has control over oligopolies. Section 2 of the Act prohibits monopolizing or the attempt to monopolize. This section can be applied to a lone participant and focuses on the creation or misuse of monopoly power through wrongful exclusionary means.

Question 4

Boycotts:

Accepted Answer

A)  aren't anticompetitive. 
B)  don't restrain trade. 
C)  increase competition. 
D)  are illegal per se. 
A)  aren't anticompetitive. 
B)  don't restrain trade. 
C)  increase competition. 
D)  are illegal per se.

Question 5

Which of the following behaviors is a horizontal per se violation?

Accepted Answer

A)  Tie-ins 
B)  Exclusive dealing contracts 
C)  Cartels 
D)  Exclusive selling agreements 
A)  Tie-ins 
B)  Exclusive dealing contracts 
C)  Cartels 
D)  Exclusive selling agreements

Question 6

All the member countries of the European Commission (EC) can impose criminal as well as civil and injunctive relief against antitrust violations.

Accepted Answer

A) True 
 B)False

Question 7

Arrangements whereby dealers agree to resell the product only within specified territories and to solicit business only from specified classes of customers are:

Accepted Answer

A)  subject to per se violations. 
B)  subject to the rule of reason. 
C)  found to be anticompetitive. 
D)  found to be inherently unreasonable. 
A)  subject to per se violations. 
B)  subject to the rule of reason. 
C)  found to be anticompetitive. 
D)  found to be inherently unreasonable.

Question 8

Which of the following statements is true for conglomerate mergers?

Accepted Answer

A)  They occur when one firm purchases either a customer or a supplier. 
B)  They do not change the ownership of firms in the markets. 
C)  There are no anticompetitive effects of forming a conglomerate. 
D)  They are mergers in which the merging firms had no prior relationship. Conglomerate mergers are those in which the merging firms had no prior relationship. 
A)  They occur when one firm purchases either a customer or a supplier. 
B)  They do not change the ownership of firms in the markets. 
C)  There are no anticompetitive effects of forming a conglomerate. 
D)  They are mergers in which the merging firms had no prior relationship. Conglomerate mergers are those in which the merging firms had no prior relationship.

Question 9

A merger:

Accepted Answer

A)  is not covered by the United States antitrust laws and regulations. 
B)  occurs through either a stock or asset purchase of one firm by another. 
C)  doesn't come under the jurisdiction of the Department of Justice. 
D)  can only be of the conglomerate type to be anticompetitive. 
A)  is not covered by the United States antitrust laws and regulations. 
B)  occurs through either a stock or asset purchase of one firm by another. 
C)  doesn't come under the jurisdiction of the Department of Justice. 
D)  can only be of the conglomerate type to be anticompetitive.

Question 10

Two telecom companies in the same market are vertical competitors.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true for monopolies?

Accepted Answer

A)  Section 1 of the Sherman Antitrust Act makes it unlawful to monopolize. 
B)  It is defined as the power to control prices or exclude competition. 
C)  Market power cannot be measured by the monopolist's share of the relevant market. 
D)  Some companies enjoy absolute monopoly over their relevant markets. 
A)  Section 1 of the Sherman Antitrust Act makes it unlawful to monopolize. 
B)  It is defined as the power to control prices or exclude competition. 
C)  Market power cannot be measured by the monopolist's share of the relevant market. 
D)  Some companies enjoy absolute monopoly over their relevant markets.

Question 12

The National Association of Attorneys General (NAAG):

Accepted Answer

A)  published guidelines by which antitrust laws can be enforced uniformly across all states, through federal activity. 
B)  formed the Multistate Antitrust Task Force to bring about a uniform approach to antitrust law in the states. 
C)  does not permit indirect suits on behalf of aggrieved citizens who are impacted by antitrust violations. 
D)  does not permit state attorneys general to litigate freely on behalf of their state citizens individually. 
A)  published guidelines by which antitrust laws can be enforced uniformly across all states, through federal activity. 
B)  formed the Multistate Antitrust Task Force to bring about a uniform approach to antitrust law in the states. 
C)  does not permit indirect suits on behalf of aggrieved citizens who are impacted by antitrust violations. 
D)  does not permit state attorneys general to litigate freely on behalf of their state citizens individually.

Question 13

What is meant by oligopoly?

Accepted Answer

It is a situation in which a particular

Question 14

A cement company and a company that supplies sand to the cement manufacturer are _____.

Accepted Answer

A)  lateral competitors 
B)  vertical competitors 
C)  horizontal competitors 
D)  zonal competitors 
A)  lateral competitors 
B)  vertical competitors 
C)  horizontal competitors 
D)  zonal competitors

Question 15

Antitrust is the area of law which keeps the market open by regulating business activities.

Accepted Answer

A) True 
 B)False

Question 16

A silicon chip manufacturer agreed to purchase computers from a computer firm that buys its silicon chips from the first firm. After the agreement, neither of the two companies bought from outside competitors, thereby closing off the markets of the two firms. This is an example of _____.

Accepted Answer

A)  foreclosure 
B)  entrenchment 
C)  reciprocity 
D)  arbitration 
A)  foreclosure 
B)  entrenchment 
C)  reciprocity 
D)  arbitration

Question 17

When there is an acquisition, _____ means that other firms can no longer deal with the acquired firm.

Accepted Answer

A)  boycotting 
B)  foreclosure 
C)  arbitration 
D)  entrenchment 
A)  boycotting 
B)  foreclosure 
C)  arbitration 
D)  entrenchment

Question 18

Which of the following statements is true for per se violations?

Accepted Answer

A)  All vertical anticompetitive efforts are per se violations. 
B)  Such violations are not always regarded illegal. 
C)  An attempt to monopolize is not a type of per se violation. 
D)  They are held by courts to be inherently unreasonable. 
A)  All vertical anticompetitive efforts are per se violations. 
B)  Such violations are not always regarded illegal. 
C)  An attempt to monopolize is not a type of per se violation. 
D)  They are held by courts to be inherently unreasonable.

Question 19

Which of the following statements is true for the Federal Trade Commission Act of 1914?

Accepted Answer

A)  It limits the Federal Trade Commission (FT
C)  to equitable remedies. 
B)  The Act provides criminal penalties to those whose violate it. 
C)  It provides that unfair or deceptive practices are subject to criminal penalties. 
D)  It only covers monopolization cases and declares them unlawful. 
A)  It limits the Federal Trade Commission (FT
C)  to equitable remedies. 
B)  The Act provides criminal penalties to those whose violate it. 
C)  It provides that unfair or deceptive practices are subject to criminal penalties. 
D)  It only covers monopolization cases and declares them unlawful.

Question 20

State attorneys general are free to litigate on behalf of their state citizens individually.

Accepted Answer

A) True 
 B)False

Explain the Hart-Scott-Rodino Act of 1976.

An agreement among competitors to divide markets by territory:

Describe Section 1 and Section 2 of the Sherman Antitrust Act. Which covers an oligopoly?

Boycotts:

Which of the following behaviors is a horizontal per se violation?

All the member countries of the European Commission (EC) can impose criminal as well as civil and injunctive relief against antitrust violations.

Arrangements whereby dealers agree to resell the product only within specified territories and to solicit business only from specified classes of customers are:

Which of the following statements is true for conglomerate mergers?

A merger:

Two telecom companies in the same market are vertical competitors.

Which of the following statements is true for monopolies?

The National Association of Attorneys General (NAAG):

What is meant by oligopoly?

A cement company and a company that supplies sand to the cement manufacturer are _____.

Antitrust is the area of law which keeps the market open by regulating business activities.

A silicon chip manufacturer agreed to purchase computers from a computer firm that buys its silicon chips from the first firm. After the agreement, neither of the two companies bought from outside competitors, thereby closing off the markets of the two firms. This is an example of _____.

When there is an acquisition, _____ means that other firms can no longer deal with the acquired firm.

Which of the following statements is true for per se violations?

Which of the following statements is true for the Federal Trade Commission Act of 1914?

State attorneys general are free to litigate on behalf of their state citizens individually.

Introduction to the Business and Ethics Environment in a Diverse Society

Alternative Dispute Resolution

The Court System and Legal Process

Administrative Law

Contracts and Sales

Torts

Property, Real and Personal

Business Crimes

Secured Transactions and Bankruptcy

Agency and Business Organizations

The Employment Relationship and Equal Employment Opportunity

Labor and Management Relations

Securities Regulation and Compliance

Intellectual Property

Environmental Law and Business

International Law and Business

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Exam 14: Antitrust and Trade Regulation

Explain the Hart-Scott-Rodino Act of 1976.

An agreement among competitors to divide markets by territory:

Describe Section 1 and Section 2 of the Sherman Antitrust Act. Which covers an oligopoly?

Boycotts:

Which of the following behaviors is a horizontal per se violation?

All the member countries of the European Commission (EC) can impose criminal as well as civil and injunctive relief against antitrust violations.

Arrangements whereby dealers agree to resell the product only within specified territories and to solicit business only from specified classes of customers are:

Which of the following statements is true for conglomerate mergers?

A merger:

Two telecom companies in the same market are vertical competitors.

Which of the following statements is true for monopolies?

The National Association of Attorneys General (NAAG):

What is meant by oligopoly?

A cement company and a company that supplies sand to the cement manufacturer are _____.

Antitrust is the area of law which keeps the market open by regulating business activities.

A silicon chip manufacturer agreed to purchase computers from a computer firm that buys its silicon chips from the first firm. After the agreement, neither of the two companies bought from outside competitors, thereby closing off the markets of the two firms. This is an example of _____.

When there is an acquisition, _____ means that other firms can no longer deal with the acquired firm.

Which of the following statements is true for per se violations?

Which of the following statements is true for the Federal Trade Commission Act of 1914?

State attorneys general are free to litigate on behalf of their state citizens individually.

Introduction to the Business and Ethics Environment in a Diverse Society

Alternative Dispute Resolution

The Court System and Legal Process

Administrative Law

Contracts and Sales

Torts

Property, Real and Personal

Business Crimes

Secured Transactions and Bankruptcy

Agency and Business Organizations

The Employment Relationship and Equal Employment Opportunity

Labor and Management Relations

Securities Regulation and Compliance

Intellectual Property

Environmental Law and Business

International Law and Business

Filters