Question 1

There is hardly any cross-elasticity in the gasoline market.

Accepted Answer

A) True 
 B)False  True

Question 2

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines. The result is that 93 percent of all new pools have the system, and 94 percent of all pool owners buying replacement systems choose Pool Line. Pool Line's competitors have brought suit charging Pool Line with monopolization of the pool cleaning market. Pool Line:

Accepted Answer

A)  probably has a monopoly per se because of the 90 percent+ market share figures. 
B)  probably has a valid defense of superior skill, foresight, and industry. 
C)  will owe treble damages to the competitors. 
D)  none of the above 
A)  probably has a monopoly per se because of the 90 percent+ market share figures. 
B)  probably has a valid defense of superior skill, foresight, and industry. 
C)  will owe treble damages to the competitors. 
D)  none of the above B

Question 3

Manufacturers who refuse to deal with discount houses have committed a per se violation of the antitrust laws.

Accepted Answer

A) True 
 B)False  False

Question 4

Guernzey Milk produces canned milk under its label and several grocery-store labels. The content is the same but the grocery-store labels are sold for less. Guernzey says the packaging for the grocery store brands is cheaper. Any antitrust problems?

Accepted Answer

Could be price discrimination

Question 5

Colleges and universities around the country keep a common pool of information among them about National Merit Scholars and disclose in their pool information about tuition, scholarship packages, and financial aid. Is such a pool of information appropriate under federal antitrust laws?

Accepted Answer

The Justice Department recently entered

Question 6

A boycott against subcontractors who are cheaper because of safety concerns is still an illegal group boycott.

Accepted Answer

A) True 
 B)False

Question 7

An agreement among competitors for elimination of bidding is a violation of federal antitrust laws.

Accepted Answer

A) True 
 B)False

Question 8

Christie's and Sotheby's:

Accepted Answer

A)  faced criminal charges of price fixing. 
B)  faced civil charges of price fixing. 
C)  faced both criminal and civil charges of price fixing. 
D)  faced neither criminal nor civil charges of price fixing. 
A)  faced criminal charges of price fixing. 
B)  faced civil charges of price fixing. 
C)  faced both criminal and civil charges of price fixing. 
D)  faced neither criminal nor civil charges of price fixing.

Question 9

The Noerr-Pennington doctrine is an antitrust exception that originates in the First Amendment.

Accepted Answer

A) True 
 B)False

Question 10

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines. The result is that 93 percent of all new pools have the system, and 94 percent of all pool owners buying replacement systems choose Pool Line. The relevant product market is:

Accepted Answer

A)  pool cleaning systems. 
B)  pool supplies and equipment. 
C)  cleaning equipment. 
D)  none of the above. 
A)  pool cleaning systems. 
B)  pool supplies and equipment. 
C)  cleaning equipment. 
D)  none of the above.

Question 11

Which of the following arrangements is subject to the rule of reason test?

Accepted Answer

A)  sole outlets and exclusive distributorships 
B)  resale price maintenance 
C)  tying 
D)  All of the above are under the rule of reason test. 
A)  sole outlets and exclusive distributorships 
B)  resale price maintenance 
C)  tying 
D)  All of the above are under the rule of reason test.

Question 12

Which of the following statutes was the first federal antitrust statute?

Accepted Answer

A)  Clayton Act 
B)  Sherman Act 
C)  Federal Trade Commission Act 
D)  none of the above 
A)  Clayton Act 
B)  Sherman Act 
C)  Federal Trade Commission Act 
D)  none of the above

Question 13

Vertical mergers are:

Accepted Answer

A)  mergers between competitors. 
B)  mergers between buyers and sellers. 
C)  per se violations of antitrust laws. 
D)  none of the above 
A)  mergers between competitors. 
B)  mergers between buyers and sellers. 
C)  per se violations of antitrust laws. 
D)  none of the above

Question 14

Which of the following is not required for an enforceable covenant not to compete?

Accepted Answer

A)  sale of a business 
B)  reasonable geographic scope 
C)  reasonable time limits 
D)  All of the above are required. 
A)  sale of a business 
B)  reasonable geographic scope 
C)  reasonable time limits 
D)  All of the above are required.

Question 15

Phillip Esten operates a mail store in which he offers various services such as packaging items for shipment, delivering items to overnight services, and a fax machine. Esten has been charging $2.00 per page for the fax service, but a new store has opened in a nearby shopping center that is charging $1.00 per page. Esten lowers his price to $.50 per page, knowing this charge will not always cover his cost. Esten's actions:

Accepted Answer

A)  constitute predatory pricing and are a violation of the Robinson-Patman Act. 
B)  constitute meeting the competition. 
C)  constitute resale price maintenance violations. 
D)  none of the above 
A)  constitute predatory pricing and are a violation of the Robinson-Patman Act. 
B)  constitute meeting the competition. 
C)  constitute resale price maintenance violations. 
D)  none of the above

Question 16

Predatory pricing is:

Accepted Answer

A)  pricing below cost. 
B)  per se illegal. 
C)  price discrimination. 
D)  none of the above 
A)  pricing below cost. 
B)  per se illegal. 
C)  price discrimination. 
D)  none of the above

Question 17

Group boycotts are per se violations.

Accepted Answer

A) True 
 B)False

Question 18

Resale price maintenance occurs when:

Accepted Answer

A)  the manufacturer suggests retail price. 
B)  minimum prices are enforced. 
C)  consignment arrangements control prices. 
D)  all of the above 
A)  the manufacturer suggests retail price. 
B)  minimum prices are enforced. 
C)  consignment arrangements control prices. 
D)  all of the above

Question 19

A vertical merger that prevents market entry is illegal.

Accepted Answer

A) True 
 B)False

Question 20

Maximum price requirements:

Accepted Answer

A)  do not constitute antitrust violations because of the benefits to consumers. 
B)  only affect the amount sold and not the competition; and there is no antitrust violation. 
C)  constitute resale price maintenance. 
D)  none of the above 
A)  do not constitute antitrust violations because of the benefits to consumers. 
B)  only affect the amount sold and not the competition; and there is no antitrust violation. 
C)  constitute resale price maintenance. 
D)  none of the above

There is hardly any cross-elasticity in the gasoline market.

Manufacturers who refuse to deal with discount houses have committed a per se violation of the antitrust laws.

Guernzey Milk produces canned milk under its label and several grocery-store labels. The content is the same but the grocery-store labels are sold for less. Guernzey says the packaging for the grocery store brands is cheaper. Any antitrust problems?

Colleges and universities around the country keep a common pool of information among them about National Merit Scholars and disclose in their pool information about tuition, scholarship packages, and financial aid. Is such a pool of information appropriate under federal antitrust laws?

A boycott against subcontractors who are cheaper because of safety concerns is still an illegal group boycott.

An agreement among competitors for elimination of bidding is a violation of federal antitrust laws.

Christie's and Sotheby's:

The Noerr-Pennington doctrine is an antitrust exception that originates in the First Amendment.

Which of the following arrangements is subject to the rule of reason test?

Which of the following statutes was the first federal antitrust statute?

Vertical mergers are:

Which of the following is not required for an enforceable covenant not to compete?

Predatory pricing is:

Group boycotts are per se violations.

Resale price maintenance occurs when:

A vertical merger that prevents market entry is illegal.

Maximum price requirements:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts: Performance, Remedies, and Rights

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters

Exam 16: Business Competition: Antitrust

There is hardly any cross-elasticity in the gasoline market.

Manufacturers who refuse to deal with discount houses have committed a per se violation of the antitrust laws.

Guernzey Milk produces canned milk under its label and several grocery-store labels. The content is the same but the grocery-store labels are sold for less. Guernzey says the packaging for the grocery store brands is cheaper. Any antitrust problems?

Colleges and universities around the country keep a common pool of information among them about National Merit Scholars and disclose in their pool information about tuition, scholarship packages, and financial aid. Is such a pool of information appropriate under federal antitrust laws?

A boycott against subcontractors who are cheaper because of safety concerns is still an illegal group boycott.

An agreement among competitors for elimination of bidding is a violation of federal antitrust laws.

Christie's and Sotheby's:

The Noerr-Pennington doctrine is an antitrust exception that originates in the First Amendment.

Which of the following arrangements is subject to the rule of reason test?

Which of the following statutes was the first federal antitrust statute?

Vertical mergers are:

Which of the following is not required for an enforceable covenant not to compete?

Predatory pricing is:

Group boycotts are per se violations.

Resale price maintenance occurs when:

A vertical merger that prevents market entry is illegal.

Maximum price requirements:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts: Performance, Remedies, and Rights

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters