Exam 46: Antitrust Law

Fact Pattern 46-1B (Questions B4-B5 apply) Natural Gas, Inc., and Olio Energy Company refine and sell natural gas. To limit the supply of natural gas on the market and thereby raise prices, Natural Gas and Olio Energy agree to buy "excess" supplies from dealers and "dispose" of it. -Refer to Fact Pattern 46-1B. The Natural Gas and Olio Energy deal is

Glassworx Corporation has exclusive control over the mar?ket for its products. Under antitrust law, this is

A territorial or customer restriction is currently considered a per se violation of antitrust law.

Any agreement that restricts output among competitors is a per se violation of Section 1 of the Sherman Act.

Congress enacts a statute to outlaw a specific type of anticompetitive business agreement. Like other laws that regulate economic competition, this law is referred to as

A horizontal restraint is any agreement that in some way restrains competition between rival firms competing in the same market.

Any activity that substantially affects interstate commerce falls outside the scope of antitrust laws.

Disc & Shoe Brakes Corporation, a brake manufacturer, sells its products to Eastside Motors, a retailer, at lower prices than it charges Fast Brake, a com?peti?tive re?tailer. This price discrimination is legal

Attempted monopolization is a violation of antitrust law.

Market power is the ability of a firm to enter a given market.

Mango Corporation believes that Melon Corporation engages in anticom?peti?tive behavior in an attempt to drive Mango and its other competitors out of the market. Antitrust laws can be enforced against Melon by

A seller is prohibited from making an exclusive-dealing contract if the effect is to tend to create a monopoly.

Speedboat Corporation refuses to sell its products to Water World, Inc., a recreational water products dealership. This is a violation of antitrust laws if it

A horizontal merger occurs when a company at one stage of production acquires a company at a higher or lower stage of production.

The relevant product market includes only products that, although produced by different firms, have identical attributes.

Fact Pattern 46-1B (Questions B4-B5 apply) Natural Gas, Inc., and Olio Energy Company refine and sell natural gas. To limit the supply of natural gas on the market and thereby raise prices, Natural Gas and Olio Energy agree to buy "excess" supplies from dealers and "dispose" of it. -Refer to Fact Pattern 46-1B. The agreement between Natural Gas and Olio Energy is

A price-fixing agreement that is reasonable does not violate antitrust law.

The Association of Organic Food Producers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is

Office Warehouse Inc. and Paperclips Inc. are the chief competitors in their market. They agree that Office Warehouse will operate only east of the Mississippi River and Paperclips will operate only west of the waterway. Under antitrust law, this is most likely

The purpose of antitrust law is to reduce competition.