Deck 47: Antitrust Law

Question 1

Offers to sell the same goods to competing buyers at different prices that are never completed would not be considered price discrimination.

Answer 1

True

Question 2

Antitrust laws prohibit farmers from belonging to cooperatives that set prices.

Answer 2

False

Question 3

Companies with monopoly power use their economic power to limit production and raise prices, thus harming the consumer, is an example of the ________ theory.

A) competition
B) specialized
C) economic
D) production
E) market

Answer 3

C

Question 4

In the text case Spirit Airlines Inc., v. Northwest Airlines Inc., in which Spirit Airlines claimed that Northwest Airlines lowered its prices on certain flights once Spirit Airlines began to compete, what was the result on appeal?

A) The court ruled that there was sufficient evidence from which a jury could determine that the defendant was guilty of predatory pricing, thereby entitling the plaintiff to prevail.
B) The court ruled that although there was sufficient evidence from which a jury could determine that the defendant was guilty of predatory pricing, the defendant was entitled to a summary judgment ruling in its favor because the plaintiff failed to establish that it could have succeeded in the market absent the defendant's predatory pricing.
C) That there was insufficient evidence from which to determine that the defendant was guilty of predatory pricing and that summary judgment was therefore properly granted to it.
D) That although there was insufficient evidence from which to determine that the defendant was guilty of predatory pricing, a jury trial was mandated because the defendant was guilty of attempted monopolization.
E) That although there was insufficient evidence from which to determine that the defendant was guilty of predatory pricing, a jury trial was mandated because the defendant was guilty of inequitable conduct.

Question 5

Per se violations cannot provide guidance to businesses as to what are acceptable and unacceptable business practices.

Question 6

The Sherman Act attempts to stop trusts from unfairly restricting market competition and prohibits banks from loaning money to those who violate the Act.

Question 7

Bid rigging has recently been removed from the category of price fixing, and is therefore legal.

Question 8

________ theorists argue that the central, and perhaps only, purpose of antitrust law is to encourage economic efficiency.

A) Chicago School
B) Marxist School
C) Efficiency School
D) Competition School
E) Surety School

Question 9

A trust is a business arrangement in which stock owners appoint beneficiaries and place their securities with trustees, who manage the company and pay a share of their earnings to the stockholders.

Question 10

The Clayton Act was enacted to exempt specific business practices from prosecution for antitrust violations.

Question 11

Which of the following most closely states the purpose of enacting the Sherman Act?

A) To stop trusts from unfairly restricting market competition.
B) To stop trusts from acting inefficiently.
C) To create exemptions from excessive government regulation in order to spur economic growth.
D) To create government-sponsored monopolies to compete with powerful corporations.
E) To regulate interstate commerce.

Question 12

Any anticompetitive behavior not prohibited under the Sherman Act or the Clayton Act is permissible under federal law.

Question 13

Antitrust law was created to encourage anticompetitive behavior among businesses based on the belief that such behavior would lead to greater efficiency.

Question 14

The Sherman Act applies to foreign companies that conduct business that affects U.S. commerce.

Question 15

When was the Interstate Commerce Act passed?

A) 1887
B) 1920
C) 1934
D) 1945
E) 1964

Question 16

In the text case United States v. Apple, Inc., which discussed whether Apple's agreement with five of the six major publishers in the United States setting higher prices for releases on Apple's "iBookstore violated antitrust laws, resulted in which ruling on appeal?

A) The court, relying on Verizon Commc'ns Inc. v. Law Offices of Curtis V. 14 Trinko, ruled that the publishers had engaged in a horizontal price fixing conspiracy but that Apple was not liable because the price fixing was at a different level of competition.
B) The court ruled that the agreement was a technically a horizontal price-fixing conspiracy but not a violation of the Sherman Act because the presence of a strong competitor justifies such an arrangement (the "strong competitor exemption").
C) The court ruled that the agreement was a horizontal price-fixing conspiracy and thus a violation of the Sherman Act.
D) The court ruled that because the agreement was within a statutory exemption to antitrust laws, it was not illegal and Apple had not violated the Sherman Act.
E) The court ruled that the newness of the market and few competitors necessitated some sort of price fixing to encourage efficiency in the market.

Question 17

In enacting the Sherman Act, Congress did not specify which specific behaviors were prohibited.

Question 18

When was the Sherman Act enacted?

A) 1890
B) 1925
C) 1935
D) 1943
E) 1958

Question 19

The Federal Trade Commission has been eliminated.

Question 20

Group boycotts by which two or more competing sellers refuse to sell their products to a certain customer are generally per se violations of the Sherman Act.

Question 21

When two parties at different levels in the manufacturing and distribution process make an agreement that restrains trade, they have made a ________ restraint against trade.

A) Horizontal
B) Corresponding
C) Lateral
D) Vertical
E) Regulatory

Question 22

Which of the following is not an example of a horizontal restraint of trade?

A) Price fixing
B) Resale-price maintenance agreements
C) Group boycotts
D) Trade associations
E) Joint ventures

Question 23

Phillipo's Distribution sells the exact same gadget to two different buyers; however one buyer gets a very discounted price. This is considered:

A) smart business
B) price discrimination
C) predatory pricing
D) discriminatory pricing
E) competitive pricing

Question 24

Which of the following is false regarding groups and activities that are exempt from antitrust law?

A) Individuals in the fishing industry can cooperate for purposes of catching and preparing fish for market.
B) Labor unions can organize and bargain.
C) When insurance businesses are subject to state antitrust regulation, they are exempt from federal antitrust law.
D) States can set their own quotas regarding the amount of oil to be sold in interstate commerce.
E) Regulatory bodies of the airline and banking industry have authority to approve behaviors that would otherwise violate antitrust law, but the same is not true for the utility industry.

Question 25

Is it a valid defense for a seller to engage in price discrimination in order to compete in good faith with another seller's low price?

A) No, that is not a defense, and the seller has violated the Clayton Act.
B) No, that is not a defense, and the seller has violated the Sherman Act.
C) Yes, that is a valid defense to price discrimination called the meeting-the-competition defense.
D) Yes, that is a valid defense to price discrimination called the legitimate-price-discrimination defense.
E) Yes, that is a valid defense to price discrimination called the meet-the-offense defense.

Question 26

Which analysis, if any, is applied to territorial and customer restrictions imposed by a manufacturer on a retailer?

A) Both territorial and customer restrictions are generally analyzed under the rule-of-reason test.
B) Both territorial and customer restrictions are generally analyzed on a per se basis.
C) Territorial restrictions are analyzed under the rule-of-reason test, while customer restrictions are analyzed on a per se basis.
D) Customer restrictions are analyzed under the rule-of-reason test, while territorial restrictions are analyzed on a per se basis.
E) Neither territorial nor customer restrictions are analyzed on any basis because both have been ruled legal in all cases.

Question 27

Through which clause was Congress able to pass the Sherman Act?

A) Interstate commerce clause
B) Full faith and credit
C) Taxing and spending clause
D) First amendment
E) Due process clause

Question 28

Despite the implementation of antitrust laws, new conglomerate business called ________ have sprung up in Japan.

A) "mergerites"
B) cartels
C) oligopolies
D) Keiretsu
E) monopolies

Question 29

Which entity is responsible for identifying specific behaviors were prohibited under the Sherman Act?

A) Congress
B) State legislatures
C) The courts
D) The president
E) The Sherman Commission

Question 30

Under the Clayton Act, who would most likely challenge horizontal mergers?

A) Congress
B) The president
C) State legislatures
D) Department of Justice
E) Sherman Commission

Question 31

Certain business practices always hurt consumers and are known as what?

A) Per se violations
B) Purposeful violations
C) Consumer protection violations
D) Expedient violations
E) Business contemplation violations

Question 32

In the U.S. Supreme Court case Continental T.V. Inc., v. GTE Sylvania Inc., Continental argued that Sylvania violated the Sherman Act by restricting the location of retailers that could sell its product. Which of the following was the result?

A) The court upheld the continued used of the bright line per se rule of illegality for all vertical restrictions.
B) That the rule-of-reason should always be applied when vertical restrictions are involved.
C) That the rule-of-reason standard should be applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect.
D) That a per se rule of illegality is applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect.
E) That the per se rule of illegality is applied in a vertical restriction case only when a manufacturing defendant is involved; otherwise, the rule-of-reason test applies.

Question 33

Which of the following practices are not covered under the Sherman Act, but are identified by the Clayton Act?

A) Attempts to monopolize
B) Mergers
C) Vertical price fixing
D) Horizontal price fixing
E) Bid rigging

Question 34

An inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior is known as which of the following?

A) The rule-of-reason analysis
B) The per se test
C) The quick-look standard
D) The consumer standard
E) The three-prong analysis

Question 35

Which of the following prohibits anticompetitive mergers or acquisitions?

A) Securities and Exchange Act
B)

Question 36

BigWheels, Inc. put all of their premium tires on sale at a severely discounted price. This put both competing tire companies out of business. BigWheels then sharply increased their prices. This is considered ________.

A) competitive pricing
B) predatory pricing
C) purposeful pricing
D) predominant pricing
E) preeminent pricing

Question 37

Which of the following is false regarding enforcement of the Sherman Act?

A) The Antitrust Division of the Department of Justice can bring criminal or civil actions against violators.
B) If a corporation commits a crime under the Sherman Act, the corporation could face a $10 million fine for each offense.
C) Officers and employees who are convicted under the Sherman Act face a maximum fine of $350,000 and/or jail time of up to three years.
D) If a party is harmed by a company's anticompetitive behavior, the party can bring a private suit under the Sherman Act.
E) Treble damages are not available under the Sherman Act.

Question 38

When a court defines a relevant market for purposes of determining if a company has a monopoly, what does the court consider?

A) Customer preference and the product
B) Product or service competition in the area
C) product and geographic markets
D) Reasonableness of the product in a market
E) Saturation point of a product

Question 39

Sea Turtles, Inc. sells its sea turtle bracelets to a local vendor for $7.50. It sells the exact same sea turtle bracelet to an out-of-state vendor for $15.00. This violates which of the following?

A)

Question 40

Which of the following, under the Sherman Act, permits a defendant to offer justification for their per se violation?

A) Quick-look
B) Purposeful
C) Justifiable
D) Necessary
E) Gracious

Question 41

Pappa Timmons, a local Mexican restaurant decides to merge with Dollar Buy Out, a retail sock store, this is known as a ________ merger.

A) horizontal
B) vertical
C) conglomerate
D) preemptory
E) predatory

Question 42

[Adult Floaters] Adam and Zach are both involved in businesses that manufacture bathing suits with small personal flotation devices implanted to assist with swimming. They both ship the suits to different states around the country. Adam and Zach get together and decide to raise their prices. They decide that since they are the only two manufacturers of this type of suit, if they both stick together and raise prices to an agreed upon amount, then consumers will be forced to pay that amount. They want to make a lot of money before anyone else jumps into the market. Adam's disgruntled secretary finds out about the agreement and sends out letters to consumers revealing the agreement.
In attempting to establish a violation of the Sherman Act, what type of trade violation would the government most likely allege?

A) A vertical restraint
B) A horizontal restraint
C) A corresponding restriction
D) An agreed restriction
E) A rule-of-reason restriction

Question 43

Carlitas Manufacturing is located in Mississippi. It does not have a place of business in Texas, but decides it would like to be in Texas. Carlitas buys CharlieHorse and continues to produce CharlieHorse's products. This type of mercer is known as a(n) ________.

A) horizontal extension merger
B) market extension merger
C) diversification merger
D) analytical merger
E) product extension merger

Question 44

The broad language of the Federal Trade Commission Act permits ________ to investigate and bring antitrust claims.

A) Congress
B) the Sherman Commission
C) the Federal Trade Commission
D) state legislatures
E) the FBI

Question 45

Which of the following is false regarding private enforcement of antitrust laws?

A) A private party can bring suit under the Clayton Act.
B) A private party can bring suit under the Sherman Act.
C) Under the Sherman Act a private party may receive treble damages.
D) A private party who prevails may receive attorney fees under the Sherman Act and under the Clayton Act.
E) Private parties are responsible for only a minority of antitrust claims brought to court in recent years.

Question 46

Which of the following references the type of conglomerate merger that occurs when a firm attempts to extend the market for one of its current products by merging with a firm already active in the target market?

A) Horizontal extension
B) Market extension
C) Diversification target
D) Vertical extension target
E) Product extension

Question 47

[Adult Floaters] Adam and Zach are both involved in businesses that manufacture bathing suits with small personal flotation devices implanted to assist with swimming. They both ship the suits to different states around the country. Adam and Zach get together and decide to raise their prices. They decide that since they are the only two manufacturers of this type of suit, if they both stick together and raise prices to an agreed upon amount, then consumers will be forced to pay that amount. They want to make a lot of money before anyone else jumps into the market. Adam's disgruntled secretary finds out about the agreement and sends out letters to consumers revealing the agreement.
Have Adam and Zach violated the Sherman Act?

A) Yes, they violated

Question 48

Valmar has been accused of being a monopoly in the car radio industry because it controls so much of the market value. To determine whether or not Valmar truly is a monopoly, what must a court look at first?

A) How much the company's net worth is.
B) How many stores or manufacturing plants Valmar has.
C) What the relevant market is.
D) How many employees would be impacted if a monopoly is found.
E) What would happen to the stock market if a monopoly is broken up.

Question 49

Which of the following is true regarding Mateo's claim that he could not have a monopoly because Robyn was also operating a tour service?

A) He was correct.
B) He was incorrect; if a company enjoys 70 percent of the relevant market, the court will usually hold that the firm has monopoly power.
C) He was incorrect; if a company enjoys 60 percent of the relevant market, the court will usually hold that the firm has monopoly power.
D) He was incorrect; if a company enjoys 51 percent of the relevant market, the court will usually hold that the firm has monopoly power.
E) He was incorrect; if a company enjoys 40 percent of the relevant market, the court will usually hold that the firm has monopoly power.

Question 50

Bottom's Up pants manufacturer decides to purchase the local outlet mall's only pants store to sell their pants. This is known as a ________ merger.

A) horizontal
B) vertical
C) conglomerate
D) juggling
E) predatory

Question 51

[Scuba Gear] Katie is a popular manufacturer of scuba gear. Before she allows a store to carry her line of scuba gear, she requires that the store owner agree that her line is the only line of scuba gear the store will carry. She also requires that if a store carries her line of scuba gear, it must also carry her line of wet suits. Sales of other manufacturer's gear and wet suits have begun a steady decline. Katie is accused of violating antitrust laws. However, Katie replies that she is simply conducting good business practices. Lara, the president of Deep Blue Scuba, calls Katie and tells her that she is prepared to bring suit against Katie for antitrust violations. Katie tells Lara that although she is not in violation, only the government could take action against her, and the government is way too busy to get involved in a dispute over scuba gear.
Katie's requirement that before she will sell scuba gear to a business, the business must carry her line of wet suits is a ________ arrangement.

A) Combination
B) Tying
C) Requirements
D) Complementary
E) Joinder

Question 52

[On the Town] Mateo began taking people on tours of historic sites in his town. This had not been done before because no one thought the town contained much in the way of historical significance. Mateo, however, did some research and, with a very active imagination on his part, came up with some good stories. He started to make a nice profit with the tours, particularly with tourists passing through the town on the way to the mountains. Mateo began hearing of rival tour groups that were planning to start giving tours in the area. Mateo sent a memo to his secretary asking, "How can we shut down other potential tour groups in order to keep all the business?" One rival company started operations, but Mateo still had 85 percent of the business. He planned to run the rival out of business and prevent the start-up of any other tour operations in his town. Mateo offered to do a free advertising brochure for any business that would put up a poster advertising his tour group and agree not to advertise, or mention in any way, any other tour group. Mateo was particularly successful in making that agreement with hotels and restaurants in his town due to his likeable personality. When Robyn, who ran a rival tour group, heard about Mateo's actions, she was furious and accused him of an antitrust violation because he was trying to keep all the tour business for himself. Mateo told Robyn she was crazy and that the only reason she had no business was that she focused her tours on dry historical fact and did not do research on romantic relationships in the area in order to "spice-up" her tours. He also told her that he was not a monopolist because he did not have all the business as evidenced by Robyn's own tour service.
With Robyn's claim that Mateo was attempting to keep all the tour business for himself, which of the following would she mostly likely be alleging?

A) A violation of

Question 53

For purposes of determining the relevant market, the type of service Mateo provides would be referred to as which of the following markets?

A) Product
B) Consumer
C) Offered
D) Utilized
E) Disputed

Question 54

Archer Deborian and Bullarian Portans are working to get the best price for their aluminum. Both are the leading aluminum dealers in the world and control market prices by collaborating to set prices for their aluminum. What type of Sherman Act violation would this be?

A) Price gouging
B) Price profiteering
C) Pricing arrangement
D) Price fixing
E) No violation has occurred since the two are collaborating to se the price.

Question 55

Bellin's which is and American oil and gas company located in Oklahoma works to control the oil prices in the Saudi Arabian basin with Cliemente, an oil and gas conglomerate owned by the Saudi government. Many Oklahoma and world oil and gas producers complain about this type of collaboration. Is this a violation of law?

A) No, because the Saudi Arabian company would not be subject to Sherman Act violations because it is a foreign government.
B) No, because world oil and gas companies have not right to complain about an American company's actions.
C) Yes, this is a violation of the Sherman Act
D) Yes, this is a Clayton Act violation.
E) This would be a violation if Congress determined there was a violation of an American law.

Question 56

[Scuba Gear] Katie is a popular manufacturer of scuba gear. Before she allows a store to carry her line of scuba gear, she requires that the store owner agree that her line is the only line of scuba gear the store will carry. She also requires that if a store carries her line of scuba gear, it must also carry her line of wet suits. Sales of other manufacturer's gear and wet suits have begun a steady decline. Katie is accused of violating antitrust laws. However, Katie replies that she is simply conducting good business practices. Lara, the president of Deep Blue Scuba, calls Katie and tells her that she is prepared to bring suit against Katie for antitrust violations. Katie tells Lara that although she is not in violation, only the government could take action against her, and the government is way too busy to get involved in a dispute over scuba gear.
Katie says that her agreements with sellers that ask the sellers to carry only her scuba gear are good and legal business practices. Which of the following is true regarding her statement?

A) She is correct.
B) She is wrong because an agreement that a seller will only carry a seller's merchandise is per se illegal under

Question 57

Which of the following allows courts to inquire into the competitive effectives of a company's behavior to determine whether social benefits or positive effects on competition outweigh the harm of anticompetitive behavior?

A) The purposeful availment rule
B) The restraint of trade rule
C) The anti-competitive rule
D) The best-business defense rule
E) The rule of reason analysis

Question 58

[On the Town] Mateo began taking people on tours of historic sites in his town. This had not been done before because no one thought the town contained much in the way of historical significance. Mateo, however, did some research and, with a very active imagination on his part, came up with some good stories. He started to make a nice profit with the tours, particularly with tourists passing through the town on the way to the mountains. Mateo began hearing of rival tour groups that were planning to start giving tours in the area. Mateo sent a memo to his secretary asking, "How can we shut down other potential tour groups in order to keep all the business?" One rival company started operations, but Mateo still had 85 percent of the business. He planned to run the rival out of business and prevent the start-up of any other tour operations in his town. Mateo offered to do a free advertising brochure for any business that would put up a poster advertising his tour group and agree not to advertise, or mention in any way, any other tour group. Mateo was particularly successful in making that agreement with hotels and restaurants in his town due to his likeable personality. When Robyn, who ran a rival tour group, heard about Mateo's actions, she was furious and accused him of an antitrust violation because he was trying to keep all the tour business for himself. Mateo told Robyn she was crazy and that the only reason she had no business was that she focused her tours on dry historical fact and did not do research on romantic relationships in the area in order to "spice-up" her tours. He also told her that he was not a monopolist because he did not have all the business as evidenced by Robyn's own tour service.
What must be proven against Mateo in order to establish that he violated antitrust laws through conduct involving monopolization?

A) Only that he had market power.
B) That he (1) possessed market power and (2) unfairly achieved the market power.
C) The he (1) possessed market power and (2) used the market power unfairly.
D) That he (1) possessed market power, (2) unfairly achieved the market power, and (3) used the market power for abuse.
E) That he (1) possessed market power, and (2) unfairly achieved the market power or used the market power for abuse.

Question 59

When a company merges with another company to produce a related product in order to add the related product to the company's production, it results in which of the following types of conglomerate merger?

A) Horizontal extension
B) Market extension
C) Diversification
D) Vertical extension
E) Product extension

Question 60

Blimpos and Comandos are both manufacturers of gaskets for oil wells. The two decide to merger their business. This is known as what type of merger?

A) horizontal
B) vertical
C) collateral
D) pointed
E) Predatory

Question 61

If a company possesses market power and either unfairly achieved this market power or uses this market power for abuse, it can be said to have

A) vertically restrained efficiency
B) monopolized
C) established a monopoly
D) engaged in price fixing
E) engaged in bid rigging

Question 62

Which of the following is a defense to predatory pricing allegations?

A) The per se defense
B) The quick look defense
C) The merged price defense
D) The business judgment defense
E) The meeting-the-competition defense

Question 63

Othellos requires that Poddelins buy all of its computers only from Othellos. This is known as a(n) ________

A) mandatory-dealing contract
B) exclusionary contract
C) exclusive-dealing contract
D) product purchase contract
E) purposeful buyer contract

Question 64

Which of the following would correctly state an argument for antitrust laws given by traditional antitrust theorists?

A) The purpose of antitrust law is to encourage economic efficiency.
B) An accumulation of economic power can lead to an accumulation of political power, which leads to political consequences for consumers.
C) Concentrated economic power does not necessarily lead to political consequences and companies should not be punished for their success.
D) To foster competition, a few powerful sellers should dominate the economy.
E) Great economic power leads to greater efficiency that translates to lower costs to consumers.

Question 65

Which of the following is false regarding enforcement of the Sherman Act?

A) Every person who makes any contract in violation of the Sherman Act is guilty of a felony.
B) The limit on fines for a corporation found in violation of the Sherman Act is $10,000,000.
C) The Sherman Act only applies to business practices that restrain trade or commerce only within the United States.
D) The limit on fines for a person found in violation of the Sherman Act is $350,000.
E) The courts have determined the Sherman Act to prohibit efforts by competitors to fix prices, restrict output, and exclude rival companies.

Question 66

To demonstrate a seller engaged in the violation known as price discrimination, a plaintiff must show that the defendant seller was involved in ________ and the defendant seller's action substantially lessened competition or tended to create a monopoly.

A) Price gouging
B) Interstate commerce
C) Predatory pricing
D) Foreign investment
E) Exclusionary pricing

Question 67

Which of the following characteristic or combination of characteristics properly constitutes a violation of

Question 68

The practices enumerated in the Clayton Act are considered illegal when they do what?

A) Create interlocking directorates.
B) Promote mergers.
C) Enable exclusionary practices.
D) Create price discrimination.
E) Cause significant harm to competition.

Question 69

The action taken by PWP Guitars in the previous question will be permitted if PWP Guitars can show which of the following?

A) Their business will fail without the acquisition.
B) Their business will become more efficient with the acquisition.
C) Competition will not be harmed by their acquisition.
D) Competition will be helped by their acquisition.
E) Their competitors have acquiesced to the acquisition.

Question 70

Assume in the previous question that PWP Guitars also has a clause in the contract that further requires any dealers who buy their guitars must also buy their guitar amplifiers. If this is found to be true, what additional violation might PWP guitars be found guilty of committing?

A) Exclusive dealing
B) Predatory pricing
C) Discriminatory pricing
D) Tying arrangement
E) Horizontal restraint of trade

Question 71

Colorado, being home to many microbreweries, has established an alcohol distributorship that controls all distribution of beer within the state. Breweries in the surrounding states have complained to the FTC about this, complaining that Colorado has established a monopoly on the beer distribution market in that state that is harming their business. Will their complaints result in Colorado being assessed a violation of

Question 72

Which of the following is true regarding the legality of Katie's arrangement that if a store carries her line of scuba gear, it must also carry her line of wet suits?

A) It is legal.
B) It is legal unless the items at issue may not be used together.
C) It is per se illegal.
D) If the tying arrangement leads to competitive harm, the court will likely find the arrangement to be illegal.
E) The agreement is legal only if use of the wetsuit enhanced the performance of the scuba gear, which is unlikely.

Question 73

PWP Guitars, a popular market leader in the guitar manufacturing industry, has secured agreements with the two largest musical instrument dealers in America to sell only PWP guitars in their stores and not buy from their competition. Three of their competitors have filed suit as plaintiffs, alleging that this agreement prevents people from buying their products, and thus lessens competition and creates a monopoly. What specific violation would the plaintiffs claim is occurring?

A) Exclusive dealing
B) Predatory pricing
C) Discriminatory pricing
D) Tying arrangement
E) Horizontal restraint of trade

Question 74

What must a plaintiff prove to show a per se violation of the Sherman Act?

A) That the prohibited conduct occurred.
B) That the prohibited conduct occurred and the proper amount of economic harm.
C) That there is an unambiguous presumption of unfair trust activity.
D) That trust activity is likely to dilute efficiency among the competition.
E) An amount of economic harm meeting standards set by the Sherman Act itself.

Question 75

The two largest competitors in the smart television market have been accused of making an agreement to divide the country in half, where Company A will only sell in the western half of the country, and Company B will only sell in the Eastern half of the country. If proven to be true, this would be an example of a(n)

A) territorial restriction
B) coordinated sales market reduction
C) vertical restraint on trade
D) horizontal division of markets
E) horizontal restraint on trade

Question 76

In the Supreme Court Case California Dental Association v. Federal Trade Commission, the Court

A) Clarified the rule-of-reason analysis.
B) Clarified when the quick-look analysis should be used over the rule-of-reason analysis.
C) Clarified how per se and rule-of-reason analysis are both vital to enforcement of antitrust law.
D) Overturned rule-of-reason analysis.
E) Overturned per se analysis.

Question 77

In what year was the Clayton act enacted?

A) 1914
B) 1814
C) 1950
D) 2014
E) 1890

Question 78

Assume further that PWP Guitars, in an effort to cement its status as the top seller of guitars in the country, attempts to acquire the two largest distributors with whom they have contracted in the previous two questions. They might be accused of attempting a

A) Horizontal Merger
B) Vertical Merger
C) Conglomerate Merger
D) Interlocking Directorate
E) Tertiary Merger

Question 79

Which of the following is true regarding Katie's statement that only the government could take action against her?

A) She is correct.
B) She is correct only if she has had no other antitrust charges brought against her; otherwise, private parties are allowed to bring suit.
C) She is incorrect although private parties are limited to injunctive relief only.
D) She is incorrect although private parties are limited to damages only and may not recover attorney fees.
E) She is incorrect, and a prevailing plaintiff is entitled to attorney fees and damages.

Question 80

Xander's owns 70 percent of the market share for aluminum tennis racquets. Under