Question 1

Resulting from a Supreme Court decision, vertical territorial and customer restrictions are now illegal per se rather than being judged by the rule of reason.

Accepted Answer

A) True 
 B)False

Question 2

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller, this is known as a:

Accepted Answer

A)   tying arrangement.
B)   vertical boycott.
C)   horizontal restraint.
D)   disparagement.E) All of the above
F) A) and B)

Question 3

The principal objective of antitrust law governing mergers is to maintain competition.

Accepted Answer

A) True 
 B)False

Question 4

The Sherman Act:

Accepted Answer

A)   prohibits contracts and combinations in restraint of trade.
B)   prohibits conspiracies in restraint of trade.
C)   proscribes monopolization and any attempts to monopolize.
D)   All of these.E) A) and C)
F) All of the above

Question 5

Barb sets her prices to undercut her competitors by 20%. This is:

Accepted Answer

A)   vertical price fixing.
B)   market allocation in restraint of competition.
C)   no violation of the Sherman Act.
D)   per se illegal.E) None of the above
F) B) and D)

Question 6

Section 1 of the Sherman Act prohibits unilateral conduct.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following remedies are available under the Sherman Act?

Accepted Answer

A)   Injunctive
B)   Damages of four times the amount of actual loss sustained
C)   Consequential damages
D)   All of theseE) None of the above
F) All of the above

Question 8

The distinction between horizontal and vertical restraints often determines whether a restraint is illegal per se or should be judged by the rule of reason test.

Accepted Answer

A) True 
 B)False

Question 9

It is per se illegal under the Sherman Act to set a maximum price, but not a minimum price.

Accepted Answer

A) True 
 B)False

Question 10

Widget Maker, Inc. manufactures and sells widgets. It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers. Does Marklin have liability for price discrimination? Does Widget Maker, Inc. have liability for price discrimination? Explain.

Accepted Answer

Widget Maker, Inc. has liability under t...

Question 11

The 2010 guidelines regarding horizontal mergers:

Accepted Answer

A)   use a single methodology for merger analysis.
B)   are intended to identify harmful mergers while avoiding unnecessary interference with mergers that will not be likely to affect competition.
C)   explain that market definition is a necessary starting point of merger analysis.
D)   reject use of the Herfindahl-Hirschman Index in quantifying market concentration.E) A) and B)
F) A) and C)

Question 12

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Accepted Answer

A)   unfair conduct.
B)   concerted action.
C)   competitive behavior.
D)   economic advantage.E) B) and C)
F) All of the above

Question 13

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Accepted Answer

A) True 
 B)False

Question 14

In tying arrangements, the courts may establish a seller's economic power by showing that:

Accepted Answer

A)   the seller occupied a dominant position in the tying market.
B)   the seller's product enjoys an advantage not shared by its competitors in the tying market.
C)   a substantial number of customers have accepted the tying arrangement and the sole explanation for their willingness to comply is the seller's economic power in the tying market.
D)   All of these.E) A) and B)
F) None of the above

Question 15

The common law traditionally favored competition.

Accepted Answer

A) True 
 B)False

Question 16

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Accepted Answer

A) True 
 B)False

Question 17

The language of Section 1 of the Sherman Act prohibits every contract that restrains trade, and the courts have interpreted this prohibition literally so as to invalidate all such contracts.

Accepted Answer

A) True 
 B)False

Question 18

If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman
Act.

Accepted Answer

A) True 
 B)False

Question 19

Harry Jones at Jones Brothers Furniture Co. does not like the Bryte Lamp Co. representative, so he decided that Jones Brothers would boycott Bryte. Under the Sherman Act, this is:

Accepted Answer

A)   per se illegal.
B)   no violation.
C)   a tying arrangement.
D)   vertical market allocation.E) A) and D)
F) A) and C)

Question 20

All tying arrangements are per se illegal.

Accepted Answer

A) True 
 B)False

Exam 40: Antitrust

Section 1 of the Sherman Act prohibits unilateral conduct.

Correct Answer
verified

The 2010 guidelines regarding horizontal mergers:

Correct Answer
verified

Resulting from a Supreme Court decision, vertical territorial and customer restrictions are now illegal per se rather than being judged by the rule of reason.

Correct Answer
verified

Harry Jones at Jones Brothers Furniture Co. does not like the Bryte Lamp Co. representative, so he decided that Jones Brothers would boycott Bryte. Under the Sherman Act, this is:

Correct Answer
verified

In tying arrangements, the courts may establish a seller's economic power by showing that:

Correct Answer
verified

The principal objective of antitrust law governing mergers is to maintain competition.

Correct Answer
verified

If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman Act.

Correct Answer
verified

All tying arrangements are per se illegal.

Correct Answer
verified

Barb sets her prices to undercut her competitors by 20%. This is:

Correct Answer
verified

The language of Section 1 of the Sherman Act prohibits every contract that restrains trade, and the courts have interpreted this prohibition literally so as to invalidate all such contracts.

Correct Answer
verified

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Correct Answer
verified

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Correct Answer
verified

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller, this is known as a:

Correct Answer
verified

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Correct Answer
verified

The distinction between horizontal and vertical restraints often determines whether a restraint is illegal per se or should be judged by the rule of reason test.

Correct Answer
verified

Correct Answer
verified
Widget Maker, Inc. has liability under t...
View Answer

The Sherman Act:

Correct Answer
verified

Which of the following remedies are available under the Sherman Act?

Correct Answer
verified

The common law traditionally favored competition.

Correct Answer
verified

It is per se illegal under the Sherman Act to set a maximum price, but not a minimum price.

Correct Answer
verified

Exam 40: Antitrust

Section 1 of the Sherman Act prohibits unilateral conduct.

Correct AnswerverifiedShow Answer

The 2010 guidelines regarding horizontal mergers:

Correct AnswerverifiedShow Answer

Resulting from a Supreme Court decision, vertical territorial and customer restrictions are now illegal per se rather than being judged by the rule of reason.

Correct AnswerverifiedShow Answer

Harry Jones at Jones Brothers Furniture Co. does not like the Bryte Lamp Co. representative, so he decided that Jones Brothers would boycott Bryte. Under the Sherman Act, this is:

Correct AnswerverifiedShow Answer

In tying arrangements, the courts may establish a seller's economic power by showing that:

Correct AnswerverifiedShow Answer

The principal objective of antitrust law governing mergers is to maintain competition.

Correct AnswerverifiedShow Answer

If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman Act.

Correct AnswerverifiedShow Answer

All tying arrangements are per se illegal.

Correct AnswerverifiedShow Answer

Barb sets her prices to undercut her competitors by 20%. This is:

Correct AnswerverifiedShow Answer

The language of Section 1 of the Sherman Act prohibits every contract that restrains trade, and the courts have interpreted this prohibition literally so as to invalidate all such contracts.

Correct AnswerverifiedShow Answer

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Correct AnswerverifiedShow Answer

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Correct AnswerverifiedShow Answer

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller, this is known as a:

Correct AnswerverifiedShow Answer

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Correct AnswerverifiedShow Answer

The distinction between horizontal and vertical restraints often determines whether a restraint is illegal per se or should be judged by the rule of reason test.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWidget Maker, Inc. has liability under t...View AnswerShow Answer

The Sherman Act:

Correct AnswerverifiedShow Answer

Which of the following remedies are available under the Sherman Act?

Correct AnswerverifiedShow Answer

The common law traditionally favored competition.

Correct AnswerverifiedShow Answer

It is per se illegal under the Sherman Act to set a maximum price, but not a minimum price.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Widget Maker, Inc. has liability under t...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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