Exam 32: Promoting Competition

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

Enterprising Business Corporation may be engaging in conduct that violates the Sherman Act.To bring an action against the firm under this statute requires that its conduct have a significant impact on

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

Lightning Cycles,Inc.,makes Lightning-brand motorcycles and accessories,which are distributed to authorized dealers,including Macho Motors,Inc.Macho operates dealerships in several locations.Lightning imposes territorial restrictions on Macho to insulate other dealers from direct competition.This is

Imperio Caffeine Corporation makes and sells coffee under a variety of brand names.Imperio wants to merge with Java Company,its main competitor.In weighing a challenge to the deal,a court looks at the relevant product market.This most likely includes coffee and

Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies,Inc.,only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products,even though there are other corn sellers from whom Nice Candies could buy.This is

Acquiring monopoly power through anticompetitive means violates antitrust law.

The possession of monopoly power constitutes the offense of monopolization.

A market in which there is more than one seller,even if only a limited number,cannot be a monopoly.

A firm can have monopoly power without violating antitrust law.

Under an exclusive-dealing contract,a seller promises a buyer a certain territory in which the buyer will have no direct competition.

International Software,Inc.,conditions the sale of one of its products on Nationwide Office System's agreeing to buy another of International's products.This deal is

Spa Selectiva Company makes and sells beauty salon supplies.By selling its product at prices substantially below the normal cost of production,Spa Selectiva hopes to drive its competitors from the market.This is

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

Global Services Corporation engages in trade practices that may violate antitrust law.The Federal Trade Commission has the power to act against unfair trade practices under

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

Excel Corporation conditions shipments of its products to Federated Stores,Inc.,on Federated's agreement not to buy products from Great Goods Company,Excel's competitor.This is

A firm can have market power without violating antitrust law.

By contract,Quality Metals Corporation forbids Resource Refining,Inc.,a wholesale buyer of Quality's products,from purchasing the products of Quality's competitors. This is allowed

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.