Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Under the Clayton Act,the Department of Justice is most likely to challenge which of the following types of mergers?

Accepted Answer

A)  Conglomerate
B)  Joining
C)  Horizontal
D)  Predatory
E)  VerticalF) A) and D)
G) C) and E)

Question 3

In determining the company's ________ share,the court considers the relevant market.

Accepted Answer

A)  Presumed
B)  Allowable
C)  Allocated
D)  Consumer
E)  MarketF) C) and E)
G) B) and E)

Question 4

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

Accepted Answer

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

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

What would be the government's best argument to the court regarding the conduct of Adam and Zach?

Accepted Answer

A)  That a rule-of-reason violation occurred.
B)  That a refusal to deal occurred.
C)  That an acknowledged violation occurred.
D)  That an intrastate concerted action occurred.
E)  That a per se violation occurred.F) C) and E)
G) A) and E)

Question 7

A ________ merger occurs when one company at one level of the manufacturing-distribution system acquires a company at another level of the system.

Accepted Answer

A)  Joining
B)  Conglomerate
C)  Horizontal
D)  Vertical
E)  PredatoryF) C) and D)
G) A) and C)

Question 8

When it is determined that business practices always hurt consumers,which of the following Section 1 violations of the Sherman Act has occurred?

Accepted Answer

A)  Per se
B)  Rule-of-reason
C)  Quick-look
D)  Three-prong
E)  ConsumerF) A) and E)
G) A) and D)

Question 9

In what year was the Clayton act enacted?

Accepted Answer

A)  1914
B)  1814
C)  1890
D)  1950
E)  2014F) B) and E)
G) B) and C)

Question 10

Mom and Pop's Print Shop,a small,family-owned business since 1962,discovers that the local branch of the largest printer in the country,Blinko's,is getting the same types of paper Mom and Pop's orders from the same supplier at a steeply discounted rate,allowing Blinko's to charge a steeply reduced price for their paper.If Mom and Pop's chose to bring an antitrust action,what type of injury would they allege?

Accepted Answer

A)  Tertiary-line injury
B)  Primary-line injury
C)  Sherman injury
D)  Price-war injury
E)  Secondary-line injuryF) C) and D)
G) A) and B)

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing _ pricing.

Accepted Answer

A)  Secondary
B)  Horizontal
C)  Primary
D)  Competitive
E)  PredatoryF) B) and E)
G) None of the above

Question 14

[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.
-The agreements between Katie and sellers that require the stores to only carry Katie's gear are ________ contracts.

Accepted Answer

A)  Exclusionary
B)  Mandatory-dealing
C)  Unilateral
D)  Primary
E)  Exclusive-dealingF) A) and B)
G) C) and D)

Question 15

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

Accepted Answer

A)  States can set their own quotas regarding the amount of oil to be sold in interstate commerce.
B)  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.
C)  When insurance businesses are subject to state antitrust regulation,they are exempt from federal antitrust law.
D)  Labor unions can organize and bargain.
E)  Individuals in the fishing industry can cooperate for purposes of catching and preparing fish for market.F) A) and B)
G) A) and E)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  Vertical price fixing
B)  Mergers
C)  Horizontal price fixing
D)  Attempts to monopolize
E)  Bid riggingF) A) and B)
G) C) and D)

Question 18

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

Accepted Answer

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

Question 19

Under the rule-of-reason analysis,which of the following factors is not taken into consideration?

Accepted Answer

A)  The nature and purpose of the restraint on trade
B)  The intent of the restraint
C)  The effect of the restraint on business and competition
D)  The effect of the restraint on the defending businesses
E)  The scope of the restraintF) B) and D)
G) A) and E)

Question 20

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.

Accepted Answer

A)  Predatory pricing
B)  Interstate commerce
C)  Exclusionary pricing
D)  Price gouging
E)  Foreign investmentF) None of the above
G) B) and D)

Exam 47: Antitrust Law

Correct Answer
verified

Correct Answer
verified

In determining the company's ________ share,the court considers the relevant market.

Correct Answer
verified

When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing _ pricing.

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

What would be the government's best argument to the court regarding the conduct of Adam and Zach?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

In what year was the Clayton act enacted?

Correct Answer
verified

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.

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A ________ merger occurs when one company at one level of the manufacturing-distribution system acquires a company at another level of the system.

Correct Answer
verified

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

Correct Answer
verified

Under the rule-of-reason analysis,which of the following factors is not taken into consideration?

Correct Answer
verified

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

Correct Answer
verified

When it is determined that business practices always hurt consumers,which of the following Section 1 violations of the Sherman Act has occurred?

Correct Answer
verified

Under the Clayton Act,the Department of Justice is most likely to challenge which of the following types of mergers?

Correct Answer
verified

Exam 47: Antitrust Law

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In determining the company's ________ share,the court considers the relevant market.

Correct AnswerverifiedShow Answer

When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing _ pricing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

What would be the government's best argument to the court regarding the conduct of Adam and Zach?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In what year was the Clayton act enacted?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A ________ merger occurs when one company at one level of the manufacturing-distribution system acquires a company at another level of the system.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Under the rule-of-reason analysis,which of the following factors is not taken into consideration?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When it is determined that business practices always hurt consumers,which of the following Section 1 violations of the Sherman Act has occurred?

Correct AnswerverifiedShow Answer

Under the Clayton Act,the Department of Justice is most likely to challenge which of the following types of mergers?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified