Exam 28: Antitrust and Restraints of Trade

The reasonableness of a price-fixing agreement is never a defense.

Fastener Products,Inc. ,a maker of nuts and bolts,sells its products to retail establishments.It charges one price to small family-owned hardware stores and a lower price to national chains.Under the Clayton Act,these price differences are

Fresh Vegetables,Inc. ,a wholesaler,refuses to sell its produce to Grocery Mart Stores,Inc. ,a retailer.Under the Sherman Act,this is

Good Nite Hotel Company acquires Happy Sleep Motel Corporation.This is

A joint refusal to deal with a particular person or firm always violates antitrust law.

Greeting Cards,Inc.(GCI),is a newcomer to its market.GCI requires that the buyers of its line of greeting cards also agree to buy GCI t-shirts,balloons,and other products.This is

Fact Pattern Thermo Gas,Inc. ,and Uno Oil Corporation refine and sell gasoline and other petroleum products.To limit the supply of gas on the market and thereby raise prices,Thermo Gas and Uno Oil agree to buy "excess" supplies from dealers and "dispose" of it. -Refer to Fact Pattern 28-1B.The deal between Thermo Gas and Uno Oil is

Fact Pattern Thermo Gas,Inc. ,and Uno Oil Corporation refine and sell gasoline and other petroleum products.To limit the supply of gas on the market and thereby raise prices,Thermo Gas and Uno Oil agree to buy "excess" supplies from dealers and "dispose" of it. -Refer to Fact Pattern 28-1B.The agreement between Thermo Gas and Uno Oil to buy "excess" supplies from dealers and "dispose" of it 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

Agreements among members of trade or professional organizations are exempt from antitrust laws.

Macro Corporation conditions the sale of its operating software on the buyer's agreement to purchase another Macro product,an Internet browser.This is

A seller is not prohibited from charging a lower price to one buyer than is charged to that buyer's competitors.

A vertical restraint is any agreement that in some way restrains competition between rival firms competing in the same market.

Repair Prepare Parts Company charges different buyers different prices for identical goods.This is

Resale price maintenance agreements are no longer considered violations of antitrust law.

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

A firm may have a legitimate reason for imposing a territorial or customer restriction.

Mickey's Appliance Store was a new retail seller of appliances in Sunwest City.Mickey's innovative sales techniques and financing caused the appliance department of Luckluster Department Store to lose a great many sales.Luckluster was a large department store and part of a large chain with substantial buying power.Luckluster told a number of appliance manufacturers that if they continued to sell to Mickey's,Luckluster would stop purchasing from them.The manufacturers immediately stopped selling appliances to Mickey's.Mickey's filed suit against Luckluster and the manufacturers,claiming their actions constituted an antitrust violation.Luckluster and the manufacturers could prove that Mickey's was a small retailer with a small portion of the market.Because the relevant market was not substantially affected,they claimed they were not guilty of restraint of trade.Discuss fully whether there was an antitrust violation.

Red's Sport Equipment Inc.and Sienna Athletic Company are the chief competitors in their market.They agree that Red's will operate only north of the Mason-Dixon line and Sienna will operate only south of the same line.Under antitrust law,this is most likely

In determining the legality of a tying arrangement,there is only one relevant market to consider.