Exam 39: Promoting Competition

Conditioning the sale of one product on the purchase of another is an exclusive-dealing contract.

A unilateral refusal to deal can violate antitrust laws if the refusal

Big U.S. Oil Company joins with a foreign cartel to control the price of oil. If the cartel has a substantial effect on U.S. commerce

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

A trade association practice or agreement that restrains trade is analyzed under the rule of reason.

Section 1 of the Sherman Act condemns monopolization.

Market concentration refers to the number of firms in the market.

North Mining Company and South Excavation Company agree to abide by the decisions of East Coast Financial Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely

Precious Metals Corporation, a raw materials vendor, sells its commodities in certain quan?ti?ties to Quarry Refining Company for a certain price but charges Rich Assets, Inc., a Quarry com?peti?tor, a higher price. This is most likely a violation of

A price-fixing agreement that is reasonable does not violate antitrust law.

Monopoly power is a minor amount of market power.

The offense of monopolization does not require the intent to monopolize.

For products that are sold nationwide, the relevant geographic market encompasses the entire United States.

Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Fluid Systems Company, an?other Florida firm. The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida. This is

Fact Pattern 39-1 Cardio, Inc., makes and sells Drawdown, the most prescribed name-brand heart medication. Emitate Corporation has the potential to make a generic version of the same drug. -Refer to Fact Pattern 39-1. Cardio pays Emitate not to sell its product. This is

Organic Cheeses, Inc., Fine & Fresh Foods Company, and Healthy Whole Foods, Inc. organize together to exchange information and share advertising. This is an example of a

A single seller acting unilaterally is free to deal, or not to deal, with anyone it chooses.

Congress enacts a statute to outlaw a specific type of anticompetitive business agreement. Like other laws that regulate economic competition, this law is referred to as

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Monopoly power may be proved by evidence that a firm used its power to control prices.