Question 1

A merger between two or more companies producing the same or similar products is a ________ merger.

Accepted Answer

A) Joining 
B) Predatory 
C) Vertical 
D) Horizontal 
E) Conglomerate 
A) Joining 
B) Predatory 
C) Vertical 
D) Horizontal 
E) Conglomerate D

Question 2

Which of the following is true regarding Mateo's claim that he could not have a monopoly because Robyn was also operating a tour service?

Accepted Answer

A) He was incorrect;if a company enjoys 51 percent of the relevant market,the court will usually hold that the firm has monopoly power. 
B) He was incorrect;if a company enjoys 40 percent of the relevant market,the court will usually hold that the firm has monopoly power. 
C) He was correct. 
D) He was incorrect;if a company enjoys 60 percent of the relevant market,the court will usually hold that the firm has monopoly power. 
E) He was incorrect;if a company enjoys 70 percent of the relevant market,the court will usually hold that the firm has monopoly power. 
A) He was incorrect;if a company enjoys 51 percent of the relevant market,the court will usually hold that the firm has monopoly power. 
B) He was incorrect;if a company enjoys 40 percent of the relevant market,the court will usually hold that the firm has monopoly power. 
C) He was correct. 
D) He was incorrect;if a company enjoys 60 percent of the relevant market,the court will usually hold that the firm has monopoly power. 
E) He was incorrect;if a company enjoys 70 percent of the relevant market,the court will usually hold that the firm has monopoly power. E

Question 3

An inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior is known as which of the following?

Accepted Answer

A) The rule-of-reason analysis 
B) The three-prong analysis 
C) The quick-look standard 
D) The consumer standard 
E) The per se test 
A) The rule-of-reason analysis 
B) The three-prong analysis 
C) The quick-look standard 
D) The consumer standard 
E) The per se test A

Question 4

What does a judge consider when conducting a rule-of-reason analysis?

Accepted Answer

When engaging in rule-of-reason analysis

Question 5

Which of the following is not an example of a horizontal restraint of trade?

Accepted Answer

A) Group boycotts 
B) Joint ventures 
C) Price fixing 
D) Trade associations 
E) Resale-price maintenance agreements 
A) Group boycotts 
B) Joint ventures 
C) Price fixing 
D) Trade associations 
E) Resale-price maintenance agreements

Question 6

Which of the following is false regarding enforcement of the Sherman Act?

Accepted Answer

A) The Antitrust Division of the Department of Justice can bring criminal or civil actions against violators. 
B) If a corporation commits a crime under the Sherman Act,the corporation could face a $10 million fine for each offense. 
C) Treble damages are not available under the Sherman Act. 
D) Officers and employees who are convicted under the Sherman Act face a maximum fine of $350,000 and/or jail time of up to three years. 
E) If a party is harmed by a company's anticompetitive behavior,the party can bring a private suit under the Sherman Act. 
A) The Antitrust Division of the Department of Justice can bring criminal or civil actions against violators. 
B) If a corporation commits a crime under the Sherman Act,the corporation could face a $10 million fine for each offense. 
C) Treble damages are not available under the Sherman Act. 
D) Officers and employees who are convicted under the Sherman Act face a maximum fine of $350,000 and/or jail time of up to three years. 
E) If a party is harmed by a company's anticompetitive behavior,the party can bring a private suit under the Sherman Act.

Question 7

Which of the following is false regarding antitrust law in Japan?

Accepted Answer

A) Cartels are illegal if they restrain competition substantially contrary to public interest. 
B) The law prohibits private monopolization. 
C) Mergers are regulated. 
D) Keiretsu as a group have been outlawed. 
E) Unfair business practices are banned. 
A) Cartels are illegal if they restrain competition substantially contrary to public interest. 
B) The law prohibits private monopolization. 
C) Mergers are regulated. 
D) Keiretsu as a group have been outlawed. 
E) Unfair business practices are banned.

Question 8

Katie says that her agreements with sellers that ask the sellers to carry only her scuba gear are good and legal business practices.Which of the following is true regarding her statement?

Accepted Answer

A) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under the Clayton Act. 
B) She is correct. 
C) Additional information is needed in order to determine whether she violated either the Clayton Act or the Sherman Act because her actions will be reviewed under a rule-of-reason test with the primary inquiry being whether her actions were reasonable in view of competitive practices in the industry. 
D) If the agreement lessens competition or tends to create a monopoly,the agreement is in violation of Section 3 of the Clayton Act. 
E) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under Section 1 of the Sherman Act. 
A) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under the Clayton Act. 
B) She is correct. 
C) Additional information is needed in order to determine whether she violated either the Clayton Act or the Sherman Act because her actions will be reviewed under a rule-of-reason test with the primary inquiry being whether her actions were reasonable in view of competitive practices in the industry. 
D) If the agreement lessens competition or tends to create a monopoly,the agreement is in violation of Section 3 of the Clayton Act. 
E) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under Section 1 of the Sherman Act.

Question 9

Section ________ of the Clayton Act prohibits anticompetitive mergers or acquisitions.

Accepted Answer

A) 6 
B) 4 
C) 7 
D) 2 
E) 10 
A) 6 
B) 4 
C) 7 
D) 2 
E) 10

Question 10

When a company merges with another company to produce a related product in order to add the related product to the company's production,it results in which of the following types of conglomerate merger?

Accepted Answer

A) Diversification 
B) Market extension 
C) Product extension 
D) Horizontal extension 
E) Vertical extension 
A) Diversification 
B) Market extension 
C) Product extension 
D) Horizontal extension 
E) Vertical extension

Question 11

Which of the following is false regarding the Federal Trade Commission Act?

Accepted Answer

A) While the language of the act permits the Federal Trade Commission to investigate antitrust claims,it may not bring antitrust claims against violators. 
B) It prohibits unfair and deceptive methods of competition. 
C) Any anticompetitive behavior not prohibited by the Sherman Act or the Clayton Act is illegal under the act. 
D) It was passed when Congress passed the Clayton Act. 
E) The language of the act permits the Federal Trade Commission to investigate antitrust claims. 
A) While the language of the act permits the Federal Trade Commission to investigate antitrust claims,it may not bring antitrust claims against violators. 
B) It prohibits unfair and deceptive methods of competition. 
C) Any anticompetitive behavior not prohibited by the Sherman Act or the Clayton Act is illegal under the act. 
D) It was passed when Congress passed the Clayton Act. 
E) The language of the act permits the Federal Trade Commission to investigate antitrust claims.

Question 12

What is the percentage of market share usually required to show monopoly power?

Accepted Answer

A) 75 
B) 70 
C) 85 
D) 65 
E) 80 
A) 75 
B) 70 
C) 85 
D) 65 
E) 80

Question 13

When was the Interstate Commerce Act passed?

Accepted Answer

A) 1887 
B) 1964 
C) 1920 
D) 1945 
E) 1934 
A) 1887 
B) 1964 
C) 1920 
D) 1945 
E) 1934

Question 14

Antitrust laws prohibit farmers from belonging to cooperatives that set prices.

Accepted Answer

A) True 
 B)False

Question 15

The action taken by PWP Guitars in the previous question will be permitted if PWP Guitars can show which of the following?

Accepted Answer

A) Their competitors have acquiesced to the acquisition. 
B) Their business will fail without the acquisition. 
C) Their business will become more efficient with the acquisition. 
D) Competition will be helped by their acquisition. 
E) Competition will not be harmed by their acquisition. 
A) Their competitors have acquiesced to the acquisition. 
B) Their business will fail without the acquisition. 
C) Their business will become more efficient with the acquisition. 
D) Competition will be helped by their acquisition. 
E) Competition will not be harmed by their acquisition.

Question 16

Section 2 of the Sherman Act applies to states,and they may be used as defendants.

Accepted Answer

A) True 
 B)False

Question 17

With Robyn's claim that Mateo was attempting to keep all the tour business for himself,which of the following would she mostly likely be alleging?

Accepted Answer

A) A violation of Section 2 of the Sherman Act 
B) A violation of Sections 1 and 2 of the Sherman Act,but not a violation of the Business Regulation. 
C) A violation of the Robinson-Patman Act 
D) A violation of Section 1 of the Sherman Act 
E) A violation of the Business Regulation Act 
A) A violation of Section 2 of the Sherman Act 
B) A violation of Sections 1 and 2 of the Sherman Act,but not a violation of the Business Regulation. 
C) A violation of the Robinson-Patman Act 
D) A violation of Section 1 of the Sherman Act 
E) A violation of the Business Regulation Act

Question 18

Which analysis,if any,is applied to territorial and customer restrictions imposed by a manufacturer on a retailer?

Accepted Answer

A) Both territorial and customer restrictions are generally analyzed under the rule-of-reason test. 
B) Neither territorial nor customer restrictions are analyzed on any basis because both have been ruled legal in all cases. 
C) Territorial restrictions are analyzed under the rule-of-reason test,while customer restrictions are analyzed on a per se basis. 
D) Customer restrictions are analyzed under the rule-of-reason test,while territorial restrictions are analyzed on a per se basis. 
E) Both territorial and customer restrictions are generally analyzed on a per se basis. 
A) Both territorial and customer restrictions are generally analyzed under the rule-of-reason test. 
B) Neither territorial nor customer restrictions are analyzed on any basis because both have been ruled legal in all cases. 
C) Territorial restrictions are analyzed under the rule-of-reason test,while customer restrictions are analyzed on a per se basis. 
D) Customer restrictions are analyzed under the rule-of-reason test,while territorial restrictions are analyzed on a per se basis. 
E) Both territorial and customer restrictions are generally analyzed on a per se basis.

Question 19

In the U.S.Supreme Court case Continental T.V.Inc. ,v.GTE Sylvania Inc. ,Continental argued that Sylvania violated the Sherman Act by restricting the location of retailers that could sell its product.Which of the following was the result?

Accepted Answer

A) That a per se rule of illegality is applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect. 
B) The court upheld the continued used of the bright line per se rule of illegality for all vertical restrictions. 
C) That the rule-of-reason should always be applied when vertical restrictions are involved. 
D) That the per se rule of illegality is applied in a vertical restriction case only when a manufacturing defendant is involved;otherwise,the rule-of-reason test applies. 
E) That the rule-of-reason standard should be applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect. 
A) That a per se rule of illegality is applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect. 
B) The court upheld the continued used of the bright line per se rule of illegality for all vertical restrictions. 
C) That the rule-of-reason should always be applied when vertical restrictions are involved. 
D) That the per se rule of illegality is applied in a vertical restriction case only when a manufacturing defendant is involved;otherwise,the rule-of-reason test applies. 
E) That the rule-of-reason standard should be applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect.

Question 20

Which of the following prohibits price discrimination by sellers?

Accepted Answer

A) The Federal Trade Commission Act 
B) Section 2 of the Sherman Act 
C) Section 2 of the Clayton Act 
D) Section 3 of the Sherman Act 
E) Section 1 of the Sherman Act 
A) The Federal Trade Commission Act 
B) Section 2 of the Sherman Act 
C) Section 2 of the Clayton Act 
D) Section 3 of the Sherman Act 
E) Section 1 of the Sherman Act

Exam 47: Antitrust Law

A merger between two or more companies producing the same or similar products is a ________ merger.

Which of the following is true regarding Mateo's claim that he could not have a monopoly because Robyn was also operating a tour service?

An inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior is known as which of the following?

What does a judge consider when conducting a rule-of-reason analysis?

Which of the following is not an example of a horizontal restraint of trade?

Which of the following is false regarding enforcement of the Sherman Act?

Which of the following is false regarding antitrust law in Japan?

Katie says that her agreements with sellers that ask the sellers to carry only her scuba gear are good and legal business practices.Which of the following is true regarding her statement?

Section ________ of the Clayton Act prohibits anticompetitive mergers or acquisitions.

When a company merges with another company to produce a related product in order to add the related product to the company's production,it results in which of the following types of conglomerate merger?

Which of the following is false regarding the Federal Trade Commission Act?

What is the percentage of market share usually required to show monopoly power?

When was the Interstate Commerce Act passed?

Antitrust laws prohibit farmers from belonging to cooperatives that set prices.

The action taken by PWP Guitars in the previous question will be permitted if PWP Guitars can show which of the following?

Section 2 of the Sherman Act applies to states,and they may be used as defendants.

With Robyn's claim that Mateo was attempting to keep all the tour business for himself,which of the following would she mostly likely be alleging?

Which analysis,if any,is applied to territorial and customer restrictions imposed by a manufacturer on a retailer?

In the U.S.Supreme Court case Continental T.V.Inc. ,v.GTE Sylvania Inc. ,Continental argued that Sylvania violated the Sherman Act by restricting the location of retailers that could sell its product.Which of the following was the result?

Which of the following prohibits price discrimination by sellers?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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