Exam 28: Antitrust and Restraints of Trade

Perfecto Appliance Company,Qualité Kitchens Corporation,and Royale Products,Inc. ,control 90 percent of the market for appliances in a certain geographic area.Perfecto,Qualité,and Royale agree to sell their appliances for the same prices,and to exclude Superia Appliances,Inc. ,which controls the other 10 percent of the market.This is

Grande Zot,Inc. ,an electronics manufacturer,sells its DVD players to Hi-Lo Retail Stores for $50 but charges It's Less! Store-which is located just down the street from Hi-Lo-$75 for the same players.This may be

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

Indigo Packaging,Inc. ,a manufacturer of packaging papers and boxes,refuses to sell to Jiffy Quik,Inc. ,a delivery service firm.Indigo convinces Knotty Box Company,a competitor,to do the same.This is

A merger between firms that compete with each other in the same market is a vertical merger.

Charging different prices to different buyers for identical goods is price discrimination.

Crop Yield Corporation,Dextros Harvest Company,and Equip Enterprises,Inc. ,are farm-equipment distributors that control 90 percent of the market for their products in a certain geographic area.The firms agree to sell their products for the same prices.This is

A tying arrangement occurs when competitors agree to fix,or "tie," their prices at the same level.

USA Cellphone Corporation requires all distributors of its products to sell the products at specified minimum prices.This resale price maintenance agreement is

Mergers between firms that compete in the same market are vertical mergers.

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 exclusive-dealing contract is allowed

Territorial and customer restrictions are currently considered per se violations of antitrust law.

Energy Power,Inc. ,joins with other businesses in its industry to exchange information,represent members' interests before Congress,and lobby for certain regulatory standards.These joint activities are

Cardio,Inc. ,makes and sells Drawdown,the most prescribed name-brand heart medication.Emitate Corporation has the potential to make a generic version of the same drug.Cardio pays Emitate not to sell its product.This is most likely

Maximum resale price maintenance agreements are per se violations of antitrust law.

In a concentrated industry,antitrust laws do not apply.

Any agreement among competitors to fix prices constitutes a per se violation of antitrust law.

Health Resources Corporation makes and sells Intake,the most prescribed name-brand cholesterol-lowering medication.Jerichol Company has the potential to make a generic version of the same drug.Health Resources pays Jerichol not to sell its product.This is

For purposes of price discrimination,identical products sold under different labels are deemed to be of like quality.

Smoothwater Driftboat Corporation refuses to sell its products to Sportsters Weekend,Inc. ,a recreational products dealership.This is