Exam 28: Antitrust and Restraints of Trade

MetaRay,Inc. ,Nucleo Company,and OneSys Corporation control 95 percent of the market for lasers in a certain geographic area.They agree to sell their products at the same prices,and exclude a fourth firm,Perfex Company (which controls the rest of the market).This is

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.

The United Association of Video Game Designers,which does not include all video game makers,refuses to deal with any parties who do not carry the products of its members.This group boycott is

A unilateral refusal to deal with a particular person or firm never violates antitrust law.

An exclusive-dealing agreement is a per se violation of antitrust law.

Price discrimination always violates antitrust law.

International Vehicle Corporation,a maker of motor vehicles,acquires all of the car and truck rental agencies in the eastern United States.This is

A group boycott is always considered a per se violation of the Sherman Act.

Quotient Corporation and Precision Products,Inc. ,are the principal suppliers of their product in their market.They agree that Quotient will sell exclusively to retailers and Precision will sell exclusively to wholesalers.Under antitrust law,this is most likely

A market division by class of customer between competitors is evaluated under a rule of reason.

A seller is prohibited from making an exclusive-dealing contract if the effect is to substantially lessen competition.

A concentrated industry is one in which many firms concentrate on competing with each other.

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

A horizontal merger occurs when a company at one stage of production acquires a company at a higher or lower stage of production.

Under the rule of reason,a court will consider the purpose of an agreement between competitors.

A tying arrangement is a per se violation of the Sherman Act.

Greasy Spoon Corporation merges with Hot Fork,Inc.This merger between firms that compete with each other in the same market is

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

Electroplate Dishware Corporation conditions shipments of its products to Flo-Thru Stores,Inc. ,on Flo-Thru's agreement not to buy products from Glassy Ware Company,Electroplate's competitor.This is

Smooth Sailing,Inc. ,conditions future shipments of its products to distributors on their agreement to charge the prices set by Smooth.This is