Exam 47: A: Antitrust Law

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

Pacific Bicycle,Inc. ,is the major distributor of bikes in the state of California.Pacific's closest competitor is Golden State Bike Company,another California firm.They agree that Golden State will distribute bikes in north?ern California and Pacific will distribute bikes in southern California.This is

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

Master Fabrication Corporation has exclusive control over the mar?ket for its product.Under antitrust law,this is

Fact Pattern 47-1B 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 47-1B.The deal between Thermo Gas and Uno Oil is

Under what circumstances would Mom's Tools & Hardware,a small store in the middle of Nowhere,a small,isolated town,be considered a mo?nopoly? If Mom's is a monopoly,is it in violation of antitrust law?

Excel Corporation conditions shipments of its products to Federated Stores,Inc. ,on Federated's agreement not to buy products from Gnarly Goods Company,Excel's competitor.This is

Granite Golfballs,Inc. ,has the power to control the market for its prod?uct.Antitrust law regulates

Antitrust law prohibits anticompetitive practices.

A joint effort by businesspersons to obtain legislative action is not exempt from the antitrust laws.

One component of the relevant market is the geographic boundaries of the market in which the firm and its competitors sell the product or service.

Enterprising Business Corporation may be engaging in conduct that vio?lates the Sherman Act.To bring an action against the firm requires that its conduct have a sig?nificant impact on

Fact Pattern 47-1B 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 47-1B.The agreement between Thermo Gas and Uno Oil to buy "excess" supplies from dealers and "dispose" of it is

In an exclusive-dealing contract,a seller conditions the sale of a product on the buyer's agreement to buy another product produced by the same seller.

Only serious threats of monopolization are condemned as violations of antitrust law.

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

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

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

A concentrated industry is one in which either a single firm or a small number of firms control a large percentage of market sales.

A firm can not be a monopolist unless it is the sole seller in a market.