Exam 16: Regulating Competition_Antitrust Laws

An express agreement is not required to create a contract in restraint of trade.

Explain the rule of reason.

Game designers Troy and Jeff design a new computer game system, and it is manufactured and sold by their company, GameTech. The game system they devise uses new technology that they have created and far exceeds the capabilities of any current gaming systems. It is also so simple to manufacture that they can do so at a very minimal cost. When it hits the market it is so much better and cheaper than the "competition" that they all end up either in bankruptcy or simply withdrawing their products from the market. GameTech's system is now the only gaming system on the market.

The University of Dover and Dover University are bitter cross-town rivals. They compete in everything from sports to academics. The schools, because of shrinking enrollment, make an agreement to give all incoming students free tuition for one semester before raising the existing rates the following semester. This action would be considered:

A merger in which the companies neither compete nor are related as a customer or supplier is called a:

What are concerted activities?

_____ refers to the act of pricing below marginal cost by a company willing and able to sustain losses for a prolonged period to drive out competition.

An agreement between a manufacturer and a dealer that assigns the dealer or distributor an exclusive territory, while the manufacturer agrees to supply only that dealer in the territory is called a ______ territorial agreement.

A vertical territorial agreement is one between a manufacturer and a dealer or distributor.

Differentiate between horizontal and vertical price-fixing.

The Wheeler-Lea amendment of 1938 made unfair or deceptive acts or practices in commerce illegal under:

Vertical agreements involving pricing (high and low) and territorial arrangements within channels of distribution are analyzed under the rule of reason.

Joshua owns orange groves. He enters into a contract with the local food processing plant whereby he would sell oranges only to that particular food processing plant. Joshua has entered into a contract which would be termed as a(n):

Agreements between competitors relating to the price to be charged for a product or service are in violation of the Sherman Act if those agreements threaten free competition.

Name some of the businesses and activities that are exempt from the Sherman Act.

"There is a significant relationship between the criminal antitrust prosecution and the civil suit for triple damages." Explain.

What is the purpose of the The Robinson-Patman amendment?

In a _____, a buyer agrees to purchase all of its needs of a given contract from the seller during a certain period of time.

The FTC prevents wrongful actions by the use of cease and desist orders.

What is the Noerr-Pennington doctrine?