Question 1

_____ is a defense to price discrimination.

Accepted Answer

A)  Noncompetitive defense 
B)  Practical liability 
C)  Meeting competition defense 
D)  Cost verification defense 
A)  Noncompetitive defense 
B)  Practical liability 
C)  Meeting competition defense 
D)  Cost verification defense

Question 2

Two shipping companies, primarily involved with the transport for oil, decide to sign an agreement fixing their carrier prices. A court reviewing this conduct:

Accepted Answer

A)  will hold the agreement as a per se violation of the antitrust laws. 
B)  will declare the conduct as a reasonable restraint on trade. 
C)  will use the rule of reason approach to decide on its unreasonableness. 
D)  will hold the agreement valid as per the Sherman Antitrust Act. 
A)  will hold the agreement as a per se violation of the antitrust laws. 
B)  will declare the conduct as a reasonable restraint on trade. 
C)  will use the rule of reason approach to decide on its unreasonableness. 
D)  will hold the agreement valid as per the Sherman Antitrust Act.

Question 3

Which of the following professional sports is exempt from antitrust laws?

Accepted Answer

A)  Ice Hockey 
B)  Soccer 
C)  Baseball 
D)  Basketball 
A)  Ice Hockey 
B)  Soccer 
C)  Baseball 
D)  Basketball

Question 4

What are the two main elements of monopolization?

Accepted Answer

The Supreme Court has defined monopoly p

Question 5

Explain the defenses to price discrimination.

Accepted Answer

Section 2 of the Robinson-Patman Act all

Question 6

If a cell phone manufacturer purchases a microchip business, it creates a(an):

Accepted Answer

A)  downstream merger. 
B)  horizontal merger. 
C)  upstream merger. 
D)  conglomerate merger. 
A)  downstream merger. 
B)  horizontal merger. 
C)  upstream merger. 
D)  conglomerate merger.

Question 7

A court can measure the anticompetitive effects of a defendant's conduct by the:

Accepted Answer

A)  unfair practices approach. 
B)  antitrust approach. 
C)  per se approach. 
D)  grievance method. 
A)  unfair practices approach. 
B)  antitrust approach. 
C)  per se approach. 
D)  grievance method.

Question 8

The rule of reason approach:

Accepted Answer

A)  examines the effects of the anticompetitive behavior before passing judgment. 
B)  is a conclusive presumption of illegality. 
C)  assumes a conduct to be inherently unreasonable. 
D)  requires no inquiry to determine the reasonableness of an anticompetitive act. 
A)  examines the effects of the anticompetitive behavior before passing judgment. 
B)  is a conclusive presumption of illegality. 
C)  assumes a conduct to be inherently unreasonable. 
D)  requires no inquiry to determine the reasonableness of an anticompetitive act.

Question 9

The Clayton Act:

Accepted Answer

A)  declared interlocking directorates both unlawful and criminal. 
B)  allows selling a product at different prices to similarly situated buyers. 
C)  is enforced solely by the Department of Justice. 
D)  declared corporate mergers unlawful but not criminal. The Clayton Act declared four practices unlawful but not criminal: (1) price discrimination-selling a product at different prices to similarly situated buyers; (2) exclusive dealing contracts including tie-ins; (3) corporate mergers; and (4) interlocking directorates. 
A)  declared interlocking directorates both unlawful and criminal. 
B)  allows selling a product at different prices to similarly situated buyers. 
C)  is enforced solely by the Department of Justice. 
D)  declared corporate mergers unlawful but not criminal. The Clayton Act declared four practices unlawful but not criminal: (1) price discrimination-selling a product at different prices to similarly situated buyers; (2) exclusive dealing contracts including tie-ins; (3) corporate mergers; and (4) interlocking directorates.

Question 10

According to the American system of economics:

Accepted Answer

A)  the market of goods and services should remain free, and open to all. 
B)  the market of goods and services is not open to those who deliver shoddy goods. 
C)  decreased competition will increase consumer choices. 
D)  decreased competition will lead to improvement in the quality of goods or services delivered. The heart of the American system of economics is its capitalist approach to business. 
A)  the market of goods and services should remain free, and open to all. 
B)  the market of goods and services is not open to those who deliver shoddy goods. 
C)  decreased competition will increase consumer choices. 
D)  decreased competition will lead to improvement in the quality of goods or services delivered. The heart of the American system of economics is its capitalist approach to business.

Question 11

A downstream merger occurs when the purchaser acquires the supplier.

Accepted Answer

A) True 
 B)False

Question 12

Why are horizontal mergers subject to most scrutiny?

Accepted Answer

Horizontal mergers involve firms selling

Question 13

Give a few examples under which trade associations can be held liable for violation of the antitrust laws.

Accepted Answer

Trade associations can be held liable fo

Question 14

Power of a buyer to dominate the market is called _____.

Accepted Answer

A)  oligopsony 
B)  monopsony 
C)  monopoly 
D)  oligopoly 
A)  oligopsony 
B)  monopsony 
C)  monopoly 
D)  oligopoly

Question 15

Identify the behavior which is both a horizontal and vertical per se violation.

Accepted Answer

A)  Cartels 
B)  Price fixing 
C)  Exclusive dealing contracts 
D)  Exclusive selling agreements 
A)  Cartels 
B)  Price fixing 
C)  Exclusive dealing contracts 
D)  Exclusive selling agreements

Question 16

Suppression of free trade does not include a business buying or merging with all of its competition so that consumers no longer have a choice.

Accepted Answer

A) True 
 B)False

Question 17

Exclusive dealing agreements, pursuant to which the buyer undertakes to purchase all its requirements for the product from the seller, are governed by the _____.

Accepted Answer

A)  Robinson-Patman Act 
B)  Clayton Act 
C)  Federal Trade Commission Act 
D)  Sherman Antitrust Act 
A)  Robinson-Patman Act 
B)  Clayton Act 
C)  Federal Trade Commission Act 
D)  Sherman Antitrust Act

Question 18

Which of the following statements is true about the Sherman Antitrust Act?

Accepted Answer

A)  It does not penalize contracts in restraint of trade or commerce. 
B)  Section 2 of the Act prohibits monopolizing or the attempt to monopolize. 
C)  The provisions of this act are enforced by the Federal Trade Commission. 
D)  It declared interlocking directorates unlawful. 
A)  It does not penalize contracts in restraint of trade or commerce. 
B)  Section 2 of the Act prohibits monopolizing or the attempt to monopolize. 
C)  The provisions of this act are enforced by the Federal Trade Commission. 
D)  It declared interlocking directorates unlawful.

Question 19

What is meant by horizontal price fixing?

Accepted Answer

Horizontal price fixing is an agreement

Question 20

Define horizontal and vertical boycott.

Accepted Answer

A horizontal boycott is an agreement bet

_____ is a defense to price discrimination.

Two shipping companies, primarily involved with the transport for oil, decide to sign an agreement fixing their carrier prices. A court reviewing this conduct:

Which of the following professional sports is exempt from antitrust laws?

What are the two main elements of monopolization?

Explain the defenses to price discrimination.

If a cell phone manufacturer purchases a microchip business, it creates a(an):

A court can measure the anticompetitive effects of a defendant's conduct by the:

The rule of reason approach:

The Clayton Act:

According to the American system of economics:

A downstream merger occurs when the purchaser acquires the supplier.

Why are horizontal mergers subject to most scrutiny?

Give a few examples under which trade associations can be held liable for violation of the antitrust laws.

Power of a buyer to dominate the market is called _____.

Identify the behavior which is both a horizontal and vertical per se violation.

Suppression of free trade does not include a business buying or merging with all of its competition so that consumers no longer have a choice.

Exclusive dealing agreements, pursuant to which the buyer undertakes to purchase all its requirements for the product from the seller, are governed by the _____.

Which of the following statements is true about the Sherman Antitrust Act?

What is meant by horizontal price fixing?

Define horizontal and vertical boycott.

Introduction to the Business and Ethics Environment in a Diverse Society

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The Court System and Legal Process

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Exam 14: Antitrust and Trade Regulation

_____ is a defense to price discrimination.

Two shipping companies, primarily involved with the transport for oil, decide to sign an agreement fixing their carrier prices. A court reviewing this conduct:

Which of the following professional sports is exempt from antitrust laws?

What are the two main elements of monopolization?

Explain the defenses to price discrimination.

If a cell phone manufacturer purchases a microchip business, it creates a(an):

A court can measure the anticompetitive effects of a defendant's conduct by the:

The rule of reason approach:

The Clayton Act:

According to the American system of economics:

A downstream merger occurs when the purchaser acquires the supplier.

Why are horizontal mergers subject to most scrutiny?

Give a few examples under which trade associations can be held liable for violation of the antitrust laws.

Power of a buyer to dominate the market is called _____.

Identify the behavior which is both a horizontal and vertical per se violation.

Suppression of free trade does not include a business buying or merging with all of its competition so that consumers no longer have a choice.

Exclusive dealing agreements, pursuant to which the buyer undertakes to purchase all its requirements for the product from the seller, are governed by the _____.

Which of the following statements is true about the Sherman Antitrust Act?

What is meant by horizontal price fixing?

Define horizontal and vertical boycott.

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