Exam 46: Antitrust Law

USA Computer Corporation requires all distribu?tors of its products to sell the products at specified minimum prices. This resale price mainte?nance agreement 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

Listen Up! Corporation books and promotes concerts and other entertainment events, for which Listen Up! also sells tickets. In weighing a challenge to Listen Up!'s "monopolistic" ticket prices, a court looks at the relevant geographic market. This encompasses

Any agreement that restricts output is an unreasonable restraint of trade.

Insurance companies are exempt antitrust laws whenever state regulation exists.

U.S. firms may be subject to other nations' antitrust laws.

Conditioning the sale of one product on the purchase of another is a tying arrangement.

An act must have a substantial impact on interstate commerce to violate antitrust law.

Blue Company and Cherry Corporation are the chief competitors in their market. They agree that Blue will operate only north of the Mason-Dixon line and Cherry will operate only south of the same line. Under the Sherman Act, this is

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

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

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

Maximum resale price maintenance agreements are subject to analysis under the rule of reason.

An agreement between firms operating at different levels in the manu?facturing and distribution process cannot violate antitrust law.

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.

In determining the legality of a tying arrangement, there are two rele?vant markets to consider.

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

The possession of monopoly power constitutes the offense of monopolization.

Eagle Parts Company charges different buyers different prices for identi?cal goods. Eagle's prices are subject to evaluation under

The basic purpose of antitrust law is to regulate economic competition.