Exam 39: Promoting Competition

Helio Company can process hydrogen into an inexpensive fuel for internal combustion engines.As an innovator in its market,Helio currently has the power to affect the price of its product.This is

Maximum resale price maintenance agreements are subject to analysis under the rule of reason.

Gulf Air,Inc.,is the major wholesale distributor of software in the state of Florida.Its closest competitor is Fluid Systems Company,another Florida firm.The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida.This is

Rally Speedboat Corporation refuses to sell its products to Super Weekends,Inc.,a recreational water products dealership.This is

HVAC Parts Company charges different buyers different prices for identical goods.HVAC's prices are subject to evaluation under

Precision Press Corporation,a disk manufacturer,sells its DVDs in certain quantities to Quik Shows,a retailer,for $275 but charges Rite Views,a competitive retailer,$350.This is most likely a violation of

A price-fixing agreement has the potential to lessen competition.

To violate antitrust law,an activity must involve two or more persons.

Studious Review Guides,Inc.,has the power to control the market for its product.Antitrust law regulates

U.S.antitrust law may protect foreign consumers and competitors from violations by U.S.firms.

Conditioning the sale of one product on the purchase of another is a tying arrangement.

Bubbly Bottling Company is engaged in the soft-drink bottling and distribution industry in the states of New York and New Jersey.The firm currently has about 40 percent of the market for these products and related services.Carbonate Distribution Corporation competes with Bubbly in the same states.Carbonate has about 35 percent of the market.If Bubbly were to acquire the stock and assets of Carbonate,would Bubbly be in violation of any of the antitrust laws If so,which one Discuss fully.

An act must have a substantial impact on interstate commerce to violate antitrust law.

Monopoly power may be proved by evidence that a firm used its power to control prices.

Luminescent Silicon Corporation,which controls 40 percent of the computer-chip market in the United States,merges with Micro Processors,Inc.,which controls 15 percent of the same market.This merger is

A suit is filed against Maxi Corporation,alleging that the firm committed the offense of monopolization.To determine whether Maxi has monopoly power requires looking at

A market division by class of customer between rival firms violates antitrust law.

A unilateral refusal to deal with a specific party is never a violation of antitrust law.

The possession of monopoly power constitutes the offense of monopolization.

Insurance companies are exempt antitrust laws whenever state regulation exists.