Question 1

A horizontal merger occurs between competitors.

Accepted Answer

A) True 
 B)False  True

Question 2

The Sherman Antitrust Act of 1890 was formed to:

Accepted Answer

A) forbid combinations in restraint of trade and monopolizing. 
B) forbid employers from interacting with workers in the private sector who create labor unions. 
C) limit the formation of yellow-dog contracts. 
D) set enhanced standards for all U.S.public company boards,management and public accounting firms. 
E) limit the formation of runaway shop agreements. 
A) forbid combinations in restraint of trade and monopolizing. 
B) forbid employers from interacting with workers in the private sector who create labor unions. 
C) limit the formation of yellow-dog contracts. 
D) set enhanced standards for all U.S.public company boards,management and public accounting firms. 
E) limit the formation of runaway shop agreements. A

Question 3

The owner of B&K Inc.,a cookie manufacturing company,entered into an agreement with Edwin,a retailer.According to the agreement,Edwin was not allowed to sell the cookies of B&K at a price lesser than $2 per pack.This is an example of an)_____.

Accepted Answer

A) closed shop agreement 
B) open shop agreement 
C) vertical restraint of trade 
D) horizontal restraint of trade 
E) runaway shop agreement 
A) closed shop agreement 
B) open shop agreement 
C) vertical restraint of trade 
D) horizontal restraint of trade 
E) runaway shop agreement C

Question 4

The per se violation against price-fixing is limited to agreements that directly fix prices.

Accepted Answer

A) True 
 B)False

Question 5

Differentiate the Clayton Act from the Sherman Act.

Accepted Answer

The Clayton Act was enacted in 1914 to p

Question 6

Like the Sherman Act,the Federal Trade Commission Act is a civil statute,involving no criminal penalties.

Accepted Answer

A) True 
 B)False

Question 7

Grain Train Inc.sells wheat to both Pack Inc.and Snack Inc.,both manufacturers of wheat breads in New York.However,Grain Train Inc.helps Pack Inc.cut its costs by supplying wheat at low prices which in turn distorts the competition between Pack Inc.and Snack Inc.This is an example of an)_____ at the buyer's level.

Accepted Answer

A) bird abatement violation 
B) resale price maintenance agreement 
C) non-price horizontal restraint 
D) secondary-line injury 
E) non-price vertical restraint 
A) bird abatement violation 
B) resale price maintenance agreement 
C) non-price horizontal restraint 
D) secondary-line injury 
E) non-price vertical restraint

Question 8

_____ is a remedy used to break up a firm into smaller,independent units,where the firm has exercised its monopoly power.

Accepted Answer

A) Amalgamation 
B) Divestiture 
C) Arson 
D) Money laundering 
E) Abatement 
A) Amalgamation 
B) Divestiture 
C) Arson 
D) Money laundering 
E) Abatement

Question 9

Section 2 of the Sherman Act states that:

Accepted Answer

A) "The Supreme Court looks at "cross-elasticity of demand" to determine the relevant market." 
B) "Employees of public organizations should not engage in collective bargaining,and take part in strikes and other forms of concerted activity." 
C) "Employers and employees should not enter into yellow-dog contracts." 
D) "Employers and employees should not enter into closed shop type of agreements." 
E) "Every person who shall monopolize,or attempt to monopolize shall be deemed guilty of a felony." 
A) "The Supreme Court looks at "cross-elasticity of demand" to determine the relevant market." 
B) "Employees of public organizations should not engage in collective bargaining,and take part in strikes and other forms of concerted activity." 
C) "Employers and employees should not enter into yellow-dog contracts." 
D) "Employers and employees should not enter into closed shop type of agreements." 
E) "Every person who shall monopolize,or attempt to monopolize shall be deemed guilty of a felony."

Question 10

In the Clayton Act,Congress explicitly exempted _____.from the antitrust laws.

Accepted Answer

A) labor unions 
B) traders 
C) wholesalers and retailers 
D) manufacturers 
E) marketers 
A) labor unions 
B) traders 
C) wholesalers and retailers 
D) manufacturers 
E) marketers

Question 11

T&U Ltd.drives its competitors out of business by charging low prices for its mopeds,thus becoming the only moped provider in the market.This resultant market is known as an)_____.

Accepted Answer

A) monopoly 
B) monopsony 
C) oligopsony 
D) perfect competitive market 
E) oligopoly 
A) monopoly 
B) monopsony 
C) oligopsony 
D) perfect competitive market 
E) oligopoly

Question 12

Cake-a-licious,a large bakery business,purchased a wheat farm in order to reduce the risk associated with its dependency on flour.This is an example of _____.

Accepted Answer

A) right horizontal integration 
B) left horizontal integration 
C) backward vertical integration 
D) forward vertical integration 
E) an abatement violation 
A) right horizontal integration 
B) left horizontal integration 
C) backward vertical integration 
D) forward vertical integration 
E) an abatement violation

Question 13

Unlike the Clayton Act,the Sherman Act is not a criminal statute.

Accepted Answer

A) True 
 B)False

Question 14

The Noerr doctrine does not apply to horizontal boycotts even if the object is to force the government to take action.

Accepted Answer

A) True 
 B)False

Question 15

A horizontal restraint of trade differs from a vertical restraint of trade in that the horizontal restraint of trade:

Accepted Answer

A) follows the rules listed in the Robinson-Patman Act of 1936. 
B) follows the rules listed in the Clayton Antitrust Act of 1914. 
C) limits the competition between rival firms in the same industry. 
D) limits the competition between a government producer and a private retailer. 
E) follows the rules stated in the Sherman Antitrust Act of 1980. 
A) follows the rules listed in the Robinson-Patman Act of 1936. 
B) follows the rules listed in the Clayton Antitrust Act of 1914. 
C) limits the competition between rival firms in the same industry. 
D) limits the competition between a government producer and a private retailer. 
E) follows the rules stated in the Sherman Antitrust Act of 1980.

Question 16

A horizontal merger occurs when a Baby store operating in California acquires a movie ticket distributor in Los Angeles.

Accepted Answer

A) True 
 B)False

Question 17

Price-fixing agreements are per se violations of Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 18

It is not unlawful for a union to bargain with an employer to sell its products above a certain price floor.

Accepted Answer

A) True 
 B)False

Question 19

The demand for Crunchy chips in the junk food market segment was about to reach saturation point.Majority of the retailers wanted to stock Crunchy chips.Great Foods Inc.,the manufacturer of Crunchy chips,also manufactured rose flavored milk that was not doing well in the market.In order to maximize the sales of the rose flavored milk,Great Foods Inc.entered into an agreement with a group retailers stating that for every two packets of Crunchy chips,they would have to stock one bottle of the rose flavored milk.It can be said that,Great Foods Inc.entered into an)_____ with the retailers.

Accepted Answer

A) agency shop agreement 
B) resale price maintenance agreement 
C) runaway shop contract 
D) tying contract 
E) divestiture contract 
A) agency shop agreement 
B) resale price maintenance agreement 
C) runaway shop contract 
D) tying contract 
E) divestiture contract

Question 20

Agreements by competitors to boycott those who engage in undesirable practices are unlawful.

Accepted Answer

A) True 
 B)False

Exam 26: Antitrust Law

A horizontal merger occurs between competitors.

The Sherman Antitrust Act of 1890 was formed to:

The owner of B&K Inc.,a cookie manufacturing company,entered into an agreement with Edwin,a retailer.According to the agreement,Edwin was not allowed to sell the cookies of B&K at a price lesser than $2 per pack.This is an example of an)_____.

The per se violation against price-fixing is limited to agreements that directly fix prices.

Differentiate the Clayton Act from the Sherman Act.

Like the Sherman Act,the Federal Trade Commission Act is a civil statute,involving no criminal penalties.

_____ is a remedy used to break up a firm into smaller,independent units,where the firm has exercised its monopoly power.

Section 2 of the Sherman Act states that:

In the Clayton Act,Congress explicitly exempted _____.from the antitrust laws.

T&U Ltd.drives its competitors out of business by charging low prices for its mopeds,thus becoming the only moped provider in the market.This resultant market is known as an)_____.

Cake-a-licious,a large bakery business,purchased a wheat farm in order to reduce the risk associated with its dependency on flour.This is an example of _____.

Unlike the Clayton Act,the Sherman Act is not a criminal statute.

The Noerr doctrine does not apply to horizontal boycotts even if the object is to force the government to take action.

A horizontal restraint of trade differs from a vertical restraint of trade in that the horizontal restraint of trade:

A horizontal merger occurs when a Baby store operating in California acquires a movie ticket distributor in Los Angeles.

Price-fixing agreements are per se violations of Section 1 of the Sherman Act.

It is not unlawful for a union to bargain with an employer to sell its products above a certain price floor.

Agreements by competitors to boycott those who engage in undesirable practices are unlawful.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Uscommerce

Administrative Law

Criminal Law

Introduction to Tort Law

Contracts

Products Liability

Consumer Credit Transactions

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Relationships Between Principal and Agent

Liability of Principal and Agent; Termination of Agency

Employment Law

Labor-Management Relations

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion,state and Federal Regulation of Foreign Corporations,and Corporate Dissolution

Unfair Trade Practices and the Federal Trade Commission

The Nature and Regulation of Real Estate and the Environment

Introduction to Property: Personal Property and Fixtures

Intellectual Property

The Transfer of Real Estate by Sale

Landlord and Tenant Law

International Law

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