Question 1

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

Accepted Answer

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

Question 2

What must be proven against Mateo in order to establish that he violated antitrust laws through conduct involving monopolization?

Accepted Answer

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

Question 3

The Sherman Act attempts to stop trusts from unfairly restricting market competition.

Accepted Answer

A) True 
 B)False

Question 4

[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?

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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?

Accepted Answer

A)  It is per se illegal.
B)  If the tying arrangement leads to competitive harm,the court will likely find the arrangement to be illegal.
C)  The agreement is legal only if use of the wetsuit enhanced the performance of the scuba gear,which is unlikely.
D)  It is legal.
E)  It is legal unless the items at issue may not be used together.F) None of the above
G) C) and D)

Question 7

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

Accepted Answer

A)  Product
B)  Utilized
C)  Disputed
D)  Offered
E)  Consume rF) A) and E)
G) B) and D)

Question 8

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

Accepted Answer

A)  Interlocking Directorate
B)  Vertical Merger
C)  Conglomerate Merger
D)  Horizontal Merger
E)  Tertiary MergerF) None of the above
G) C) and D)

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

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

Exam 47: Antitrust Law

The Sherman Act attempts to stop trusts from unfairly restricting market competition.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

What must be proven against Mateo in order to establish that he violated antitrust laws through conduct involving monopolization?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

Exam 47: Antitrust Law

The Sherman Act attempts to stop trusts from unfairly restricting market competition.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What must be proven against Mateo in order to establish that he violated antitrust laws through conduct involving monopolization?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

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