Question 1

The per se rule makes price fixing illegal when it results in higher prices but doesn't apply to agreements to ensure lower prices.

Accepted Answer

A) True 
 B)False  False

Question 2

The normal activities of labor unions are exempt from the Sherman Act.

Accepted Answer

A) True 
 B)False  True

Question 3

The _____ to the Clayton Act prohibits all acquisitions in which the effect lessened competition substantially in any line of commerce in any section of the country.

Accepted Answer

A)  Bricker amendment 
B)  Tyler precedent 
C)  Wheeler-Lea amendment 
D)  Robinson-Patman amendment 
E)  Celler-Kefauver amendment 
A)  Bricker amendment 
B)  Tyler precedent 
C)  Wheeler-Lea amendment 
D)  Robinson-Patman amendment 
E)  Celler-Kefauver amendment E

Question 4

Crimes under the Sherman Act are felonies.

Accepted Answer

A) True 
 B)False

Question 5

A trust is a fiduciary relationship in which the trustee holds equitable title and the beneficiaries hold legal title to the trust property.

Accepted Answer

A) True 
 B)False

Question 6

The _____, as permitted by the Robinson-Patman amendment refers to price differentials based on differences in the cost of manufacture, sale, or delivery of commodities.

Accepted Answer

A)  good-faith meeting-of-competition defense 
B)  mobile defense 
C)  position defense 
D)  changing conditions defense 
E)  cost justification defense 
A)  good-faith meeting-of-competition defense 
B)  mobile defense 
C)  position defense 
D)  changing conditions defense 
E)  cost justification defense

Question 7

The Federal Trade Commission is an independent administrative agency charged with keeping competition free and fair through the enforcement of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 8

Can the existence of a monopoly be lawful? Explain why or why not.

Accepted Answer

Under the Sherman Act, proof of the exis

Question 9

If an action is determined to be illegal per se, the courts are not required to apply the rule of reason to analyze the case further.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of the Sherman Act?

Accepted Answer

A)  The Sherman Act applies only to the sale of goods. 
B)  Price fixing in the service sector is permitted under the Sherman Act. 
C)  Maximum-price agreements are illegal, while minimum-price agreements are not. 
D)  The Sherman Act covers services, including those performed by the learned professions. 
E)  An action is not considered to be price fixing if the prices fixed are fair or reasonable. 
A)  The Sherman Act applies only to the sale of goods. 
B)  Price fixing in the service sector is permitted under the Sherman Act. 
C)  Maximum-price agreements are illegal, while minimum-price agreements are not. 
D)  The Sherman Act covers services, including those performed by the learned professions. 
E)  An action is not considered to be price fixing if the prices fixed are fair or reasonable.

Question 11

Which of the following statements holds true for the good-faith meeting-of-competition defense as permitted by the Robinson-Patman amendment?

Accepted Answer

A)  It applies to a situation when sellers may select their own customers in good-faith and not in restraint of trade. 
B)  It applies to a situation when there could be price differentials based on differences in the cost of manufacture, sale, or delivery of commodities. 
C)  It applies to a situation which involves the setting up barriers to market entry around a product, brand, product line, market, or market segment. 
D)  It applies to a situation when a seller in good faith may meet the equally low price of a competitor. 
E)  It applies to a situation when price changes may be made in response to changing conditions such as sales in good faith in discontinuance of business in the goods concerned. 
A)  It applies to a situation when sellers may select their own customers in good-faith and not in restraint of trade. 
B)  It applies to a situation when there could be price differentials based on differences in the cost of manufacture, sale, or delivery of commodities. 
C)  It applies to a situation which involves the setting up barriers to market entry around a product, brand, product line, market, or market segment. 
D)  It applies to a situation when a seller in good faith may meet the equally low price of a competitor. 
E)  It applies to a situation when price changes may be made in response to changing conditions such as sales in good faith in discontinuance of business in the goods concerned.

Question 12

One party offers to buy the other's goods but only if the second party buys other goods from the first party. This is known as a(n):

Accepted Answer

A)  franchise contract. 
B)  exclusive dealing contract. 
C)  reciprocal dealing contract. 
D)  tying contract. 
E)  requirements contract. 
A)  franchise contract. 
B)  exclusive dealing contract. 
C)  reciprocal dealing contract. 
D)  tying contract. 
E)  requirements contract.

Question 13

Explain the concept of predatory conduct in trade.

Accepted Answer

Predatory conduct is seeking to advance

Question 14

A manufacturer announcing its prices and refusing to deal with those who fail to comply is a method of legally controlling the retail price.

Accepted Answer

A) True 
 B)False

Question 15

The Federal Trade Commission Act was written without a specific definition of what constituted "unfair methods of competition" to allow the FTC to determine whether it existed on a case by case basis.

Accepted Answer

A) True 
 B)False

Question 16

The Sherman Act regulates monopolies after they are formed, but does not regulate mere attempts to monopolize.

Accepted Answer

A) True 
 B)False

Question 17

The Robinson-Patman amendment gives the _____ jurisdiction and authority to regulate quantity discounts.

Accepted Answer

A)  Consumers' Association 
B)  U.S. Consumer Product Safety Commission 
C)  Department of Commerce 
D)  Department of Justice 
E)  Federal Trade Commission 
A)  Consumers' Association 
B)  U.S. Consumer Product Safety Commission 
C)  Department of Commerce 
D)  Department of Justice 
E)  Federal Trade Commission

Question 18

The president of soft drinks bottling company agreed with a competitor to stop discounts to retailers, which earned him a jail sentence. What was his crime?

Accepted Answer

A)  Variable pricing 
B)  Vertical price-fixing 
C)  Resale price maintenance 
D)  Predatory conduct 
E)  Horizontal price-fixing 
A)  Variable pricing 
B)  Vertical price-fixing 
C)  Resale price maintenance 
D)  Predatory conduct 
E)  Horizontal price-fixing

Question 19

In 1914, Congress, recognizing that the Sherman Act needed to be more specific, enacted the _____ as an amendment to the Sherman Act.

Accepted Answer

A)  Clayton Act 
B)  Fair Credit Billing Act 
C)  Securities Act 
D)  Truth in Lending Act 
E)  Robinson-Patman Act 
A)  Clayton Act 
B)  Fair Credit Billing Act 
C)  Securities Act 
D)  Truth in Lending Act 
E)  Robinson-Patman Act

Question 20

Which of the following is true of the triple damages awarded the injured parties under the Sherman Act?

Accepted Answer

A)  It applies only to individuals, and not corporations or larger institutions. 
B)  Triple-damage suits cannot impose a fine in excess of any the could be imposed in a criminal proceeding. 
C)  It can only compensate the plaintiff for actual injury. 
D)  Only injured members of the general public can enforce the law. 
E)  Both federal and state governments can file a suit for triple damages. 
A)  It applies only to individuals, and not corporations or larger institutions. 
B)  Triple-damage suits cannot impose a fine in excess of any the could be imposed in a criminal proceeding. 
C)  It can only compensate the plaintiff for actual injury. 
D)  Only injured members of the general public can enforce the law. 
E)  Both federal and state governments can file a suit for triple damages.

Exam 16: Regulating Competition_Antitrust Laws

The per se rule makes price fixing illegal when it results in higher prices but doesn't apply to agreements to ensure lower prices.

The normal activities of labor unions are exempt from the Sherman Act.

The _____ to the Clayton Act prohibits all acquisitions in which the effect lessened competition substantially in any line of commerce in any section of the country.

Crimes under the Sherman Act are felonies.

A trust is a fiduciary relationship in which the trustee holds equitable title and the beneficiaries hold legal title to the trust property.

The _____, as permitted by the Robinson-Patman amendment refers to price differentials based on differences in the cost of manufacture, sale, or delivery of commodities.

The Federal Trade Commission is an independent administrative agency charged with keeping competition free and fair through the enforcement of the Sherman Act.

Can the existence of a monopoly be lawful? Explain why or why not.

If an action is determined to be illegal per se, the courts are not required to apply the rule of reason to analyze the case further.

Which of the following is true of the Sherman Act?

Which of the following statements holds true for the good-faith meeting-of-competition defense as permitted by the Robinson-Patman amendment?

One party offers to buy the other's goods but only if the second party buys other goods from the first party. This is known as a(n):

Explain the concept of predatory conduct in trade.

A manufacturer announcing its prices and refusing to deal with those who fail to comply is a method of legally controlling the retail price.

The Federal Trade Commission Act was written without a specific definition of what constituted "unfair methods of competition" to allow the FTC to determine whether it existed on a case by case basis.

The Sherman Act regulates monopolies after they are formed, but does not regulate mere attempts to monopolize.

The Robinson-Patman amendment gives the _____ jurisdiction and authority to regulate quantity discounts.

The president of soft drinks bottling company agreed with a competitor to stop discounts to retailers, which earned him a jail sentence. What was his crime?

In 1914, Congress, recognizing that the Sherman Act needed to be more specific, enacted the _____ as an amendment to the Sherman Act.

Which of the following is true of the triple damages awarded the injured parties under the Sherman Act?

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Financial and Securities Regulations

Privacy and Consumer Protection

Environmental Regulation and Resource Sustainability

Discrimination in Employment

Employment Laws

Labor-Management Relationship

Filters