Question 1

Which of the following situations is most likely to be deemed in violation of Section 1 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 D

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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

Accepted Answer

A)  A manufacturer unilaterally assigns exclusive territories to its dealers. 
B)  A manufacturer unilaterally suggests a retail price to its dealers for its products. 
C)  A manufacturer causes its dealers to agree not to sell outside their dealership territories. 
D)  A manufacturer limits the dealerships it grants in a particular geographic area. 
A)  A manufacturer unilaterally assigns exclusive territories to its dealers. 
B)  A manufacturer unilaterally suggests a retail price to its dealers for its products. 
C)  A manufacturer causes its dealers to agree not to sell outside their dealership territories. 
D)  A manufacturer limits the dealerships it grants in a particular geographic area. C

Question 4

Which of the following situations will justify the inference that a price-fixing conspiracy exists?

Accepted Answer

A)  The defendant's parallel pricing behavior stemmed from an implied agreement. 
B)  Independent business decisions by the defendant led to price parallelism. 
C)  The defendant was unwilling to relinquish market share by engaging in price competition. 
D)  The evidence only indicates pure conscious price parallelism by the defendant. 
A)  The defendant's parallel pricing behavior stemmed from an implied agreement. 
B)  Independent business decisions by the defendant led to price parallelism. 
C)  The defendant was unwilling to relinquish market share by engaging in price competition. 
D)  The evidence only indicates pure conscious price parallelism by the defendant.

Question 5

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.

Question 6

Traditional antitrust thinkers argue that:

Accepted Answer

A)  concentrated economic power may lead to antidemocratic concentrations of political power. 
B)  antitrust regulations should protect competition instead of competitors. 
C)  concentration within a particular industry does not preclude interindustry competition. 
D)  domestic concentration might be necessary for effective international market competition. 
A)  concentrated economic power may lead to antidemocratic concentrations of political power. 
B)  antitrust regulations should protect competition instead of competitors. 
C)  concentration within a particular industry does not preclude interindustry competition. 
D)  domestic concentration might be necessary for effective international market competition.

Question 7

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 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 international courts 
D)  Applying the strict scrutiny test

Question 8

Which of the following is true about indirect purchasers?

Accepted Answer

A)  Indirect purchasers' recovery from defendants precludes recovery by direct purchasers. 
B)  The Supreme Court has held that indirect purchasers lack standing to sue for antitrust violations. 
C)  The Supreme Court has held that indirect purchasers can recover only their actual losses. 
D)  Indirect purchasers do not have the standing to sue under any of the state antitrust statutes. 
A)  Indirect purchasers' recovery from defendants precludes recovery by direct purchasers. 
B)  The Supreme Court has held that indirect purchasers lack standing to sue for antitrust violations. 
C)  The Supreme Court has held that indirect purchasers can recover only their actual losses. 
D)  Indirect purchasers do not have the standing to sue under any of the state antitrust statutes.

Question 9

Bony Corp.requires retailers and wholesalers that purchase Bony's $200 video cassette recorders to purchase $20-worth of blank Bony videotapes with each VCR.Under these circumstances,which of the following statements is accurate?

Accepted Answer

A)  Bony's tying requirement will be deemed legal by the courts because it provides a great value proposition for end users. 
B)  The competitive harm in this case would be to Bony's competitors in the sale of video cassette recorders. 
C)  That Bony is the market leader in the VCR market is a relevant factor insofar as the legality of Bony's tying requirement is concerned. 
D)  Evidence that almost all of Bony's VCRs sold last year were part of the tying agreement would be helpful to Bony if it were sued under Section 1 of the Sherman Act. 
A)  Bony's tying requirement will be deemed legal by the courts because it provides a great value proposition for end users. 
B)  The competitive harm in this case would be to Bony's competitors in the sale of video cassette recorders. 
C)  That Bony is the market leader in the VCR market is a relevant factor insofar as the legality of Bony's tying requirement is concerned. 
D)  Evidence that almost all of Bony's VCRs sold last year were part of the tying agreement would be helpful to Bony if it were sued under Section 1 of the Sherman Act.

Question 10

Assume that the Oklahoma Wholesale Lumber Suppliers' Association,a trade association formed by all lumber wholesalers in the state,adopts a "fair competition" plan that divides the state into exclusive territories for member wholesalers.Each member wholesaler is forbidden by the plan to sell to retailers in another wholesaler's territory.Under these circumstances,which of the following is true?

Accepted Answer

A)  Since this is a case of ancillary vertical restraint,the courts would apply the rule of reason to determine whether it is lawful. 
B)  Since this is a case of "naked" horizontal restraint,the courts would apply the per se rule to determine whether it is lawful. 
C)  Since this is a case of ancillary horizontal restraint,the courts would apply the per se rule to determine whether it is lawful. 
D)  Since this is a case of "naked" vertical restraint,the courts would apply the rule of reason to determine whether it is lawful. 
A)  Since this is a case of ancillary vertical restraint,the courts would apply the rule of reason to determine whether it is lawful. 
B)  Since this is a case of "naked" horizontal restraint,the courts would apply the per se rule to determine whether it is lawful. 
C)  Since this is a case of ancillary horizontal restraint,the courts would apply the per se rule to determine whether it is lawful. 
D)  Since this is a case of "naked" vertical restraint,the courts would apply the rule of reason to determine whether it is lawful.

Question 11

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 12

In order to have standing in a federal antitrust case what must a potential plaintiff have?

Accepted Answer

A)  Direct injury resulting from the antitrust violation 
B)  Indirect injury resulting from the antitrust violation 
C)  An injury that crosses international boundaries 
D)  An injury that has caused a plaintiff to file for bankruptcy protection 
A)  Direct injury resulting from the antitrust violation 
B)  Indirect injury resulting from the antitrust violation 
C)  An injury that crosses international boundaries 
D)  An injury that has caused a plaintiff to file for bankruptcy protection

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Some courts have recognized that tying agreements sometimes may be necessary to protect the reputation of the seller's product line.

Accepted Answer

A) True 
 B)False

Question 15

Horizontal price-fixing is not covered under antitrust legislation and is lawful.

Accepted Answer

A) True 
 B)False

Question 16

The proof of joint action required for violations of § 1 is applicable when a single firm is guilty of monopolizing or attempting to monopolize a part of trade or commerce.

Accepted Answer

A) True 
 B)False

Question 17

Firms that acquire monopoly power in a given market comply with the antitrust laws' objective of promoting competitive market structures.

Accepted Answer

A) True 
 B)False

Question 18

_____ analysis of behavior challenged under Section 1 of the Sherman Act is thought to provide reliable guidance to business.

Accepted Answer

A)  Quick-look 
B)  Rule of reason 
C)  Secondary 
D)  Per se 
A)  Quick-look 
B)  Rule of reason 
C)  Secondary 
D)  Per se

Question 19

Parties that are successful in an antitrust suit are entitled to recover treble damages.

Accepted Answer

A) True 
 B)False

Question 20

Although the Sherman Act indicates that ''every'' restraint on trade is illegal,courts have held that the Sherman Act is applied only when a competitor acts in what way?

Accepted Answer

A)  Unreasonably 
B)  When the competitor is profiting 
C)  When the competitor has obtained a monopoly 
D)  When the corporation has 6000 or more employees 
A)  Unreasonably 
B)  When the competitor is profiting 
C)  When the competitor has obtained a monopoly 
D)  When the corporation has 6000 or more employees

Exam 49: Antitrust: the Sherman Act

Which of the following situations is most likely to be deemed in violation of Section 1 of the Sherman Act?

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

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

Which of the following situations will justify the inference that a price-fixing conspiracy exists?

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

Traditional antitrust thinkers argue that:

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

Which of the following is true about indirect purchasers?

Bony Corp.requires retailers and wholesalers that purchase Bony's $200 video cassette recorders to purchase $20-worth of blank Bony videotapes with each VCR.Under these circumstances,which of the following statements is accurate?

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.

In order to have standing in a federal antitrust case what must a potential plaintiff have?

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

Some courts have recognized that tying agreements sometimes may be necessary to protect the reputation of the seller's product line.

Horizontal price-fixing is not covered under antitrust legislation and is lawful.

The proof of joint action required for violations of § 1 is applicable when a single firm is guilty of monopolizing or attempting to monopolize a part of trade or commerce.

Firms that acquire monopoly power in a given market comply with the antitrust laws' objective of promoting competitive market structures.

_____ analysis of behavior challenged under Section 1 of the Sherman Act is thought to provide reliable guidance to business.

Parties that are successful in an antitrust suit are entitled to recover treble damages.

Although the Sherman Act indicates that ''every'' restraint on trade is illegal,courts have held that the Sherman Act is applied only when a competitor acts in what way?

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