Exam 46: Antitrust Law

Master Manufacturing Corporation has exclusive control over the mar?ket for its product. Under the Sherman Act, this is

Fairway Products, Inc., and Golly Clubs Corporation lobby Congress to pass a law banning a competitor's product. This joint effort is probably

A unilateral refusal to deal with a specific party is never a vio?lation of antitrust law.

Only private individuals can enforce the antitrust laws.

Market power is a firm's power to affect the market price of its product.

A price-fixing agreement has the potential to lessen competition.

Territorial and customer restrictions are judged under a rule of reason.

U.S. antitrust law may protect foreign consumers and competitors from violations by U.S. firms.

To acquire monopoly power in its market, Perfect Plastics, Inc., sets its prices lower than its competitors. Under the Sherman Act, this is

A group boycott against a supplier for political reasons is not illegal.

To violate antitrust law, an activity must involve two or more persons.

The size of a firm in relation to its market determines whether it is a mo?nopolist.

Any agreement that enhances market power is an unreasonable restraint of trade.

Omega Corporation and Precision Products, Inc., are the principal sup?pliers of their product in their market. They agree that Omega will sell exclusively to retailers and Precision will sell exclusively to wholesalers. Under the Sherman Act, this is

If a joint venture does not involve price fixing or a market division, it will be ana?lyzed under the rule of reason.

Gourmet Foods, Inc., requires all distribu?tors of its products to sell them at a specified minimum price. Under the Sherman Act, this is a violation

State laws regulate local restraints on competition.

In determining the legality of a merger, a crucial consideration is market concentration.

International Products, Inc. (ICI), has exclusive control over the market for its product. ICI's market power is subject to evaluation under

Luminescent Silicon Corporation, which controls 40 percent of the com?puter-chip mar?ket in the United States, merges with Micro Processors, Inc., which controls 15 per?cent of the same market. Under the Clayton Act, this merger is