Question 1

The requirement of Shirley that before she will sell scuba gear to a business,the business must carry her line of wet suits is a ______ arrangement.

Accepted Answer

A)   Combination
B)   Tying
C)   Requirements
D)   Complementary
E)   JoinderF) A) and E)
G) A) and C)

Question 2

Which of the following violations would Prudence most likely be alleging with her claim that Benny was attempting to keep all the tour business for himself?

Accepted Answer

A)   A violation of Section 1 of the Sherman Act
B)   A violation of Section 2 of the Sherman Act
C)   A violation of the Business Regulation Act
D)   A violation of the Robinson-Patman Act
E)   A violation of Sections 1 and 2 of the Sherman Act, but not a violation of the Business Regulation.F) A) and D)
G) B) and E)

Question 3

What must be shown in order to establish a violation of Section 1 of the Sherman Act?

Accepted Answer

In order to constitute a violation of Se...

Question 4

Which of the following standards allows a defendant to offer justification for a per se violation of Section 1 of the Sherman Act,in which case the court will engage in a rule-of-reason analysis?

Accepted Answer

A)   Quick-look
B)   Reasonableness
C)   Justifiable
D)   Necessary
E)   NeedfulF) All of the above
G) B) and D)

Question 5

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

Accepted Answer

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.F) A) and E)
G) A) and D)

Question 6

When a company merges with another company that is not a competitor or a buyer or seller to the company,that merger is called a ______ merger.

Accepted Answer

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

Question 7

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

Question 8

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

Accepted Answer

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.F) B) and E)
G) A) and D) A

Question 9

The Federal Trade Commission has been eliminated.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following was the result in PepsiCo Inc.,v.The Coca-Cola Co.,the case in the text in which PepsiCo challenged Coca-Cola's loyalty policy by which independent food distributors (IFDs) agreed to not handle soft drink products of PepsiCo?

Accepted Answer

A)   That the practice violated antitrust laws because it constituted an attempted monopolization.
B)   That the practice violated antitrust laws because it constituted a monopolization.
C)   That PepsiCo failed to provide evidentiary support for the restrictions it urged in regard to the relevant product market and that it failed to establish an antitrust claim.
D)   That while PepsiCo provided sufficient evidentiary support for the restrictions it urged in regard to the relevant product market, it failed to show that a sufficient number of customers in that market preferred IFDs over other methods of distribution.
E)   That because PepsiCo had itself engaged in anticompetitive conduct, it was estopped from asserting claims against Coca-Cola.F) All of the above
G) None of the above

Question 11

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

Accepted Answer

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.F) A) and D)
G) A) and B)

Question 12

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

Accepted Answer

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.F) C) and D)
G) B) and E) C

Question 13

The Sherman Act may not be constitutionally applied to foreign companies that conduct business in the U.S.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following references the type of conglomerate merger that occurs when a company merges with another company producing a related product in order to add the related product to the company's production?

Accepted Answer

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

Question 15

Bid rigging is legal because it has recently been removed from the category of price-fixing.

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A)   Horizontal
B)   Corresponding
C)   Lateral
D)   Vertical
E)   RegulatoryF) A) and B)
G) All of the above

Question 17

Which of the following was the result on appeal in California v.Safeway,the case in the text involving whether an agreement between grocers to share revenues during the term of a labor dispute violated antitrust laws?

Accepted Answer

A)   The court ruled that the agreement was legal because it came within the non-statutory labor exemption to antitrust laws.
B)   The court ruled that the agreement was legal because it came within the statutory labor exemption to antitrust laws.
C)   The court ruled that the revenue-sharing agreement was not immune from antitrust scrutiny.
D)   The court ruled that because the revenue-sharing agreement was not within the non-statutory exemption to antitrust laws, it was illegal as a matter of law with no further inquiry necessary.
E)   The court ruled that although the agreement came within the statutory exemption to antitrust laws, additional inquiry was needed in order to determine whether the agreement constituted a per se violation which is illegal even in the face of an exemption.F) C) and D)
G) B) and E)

Question 18

In attempting to establish a violation of the Sherman Act,which of the following would be the offense the government would most likely allege?

Accepted Answer

A)   Price gouging
B)   Price raising
C)   Charge arrangement
D)   Price fixing
E)   Consumer misappropriationF) C) and D)
G) B) and D)

Question 19

The relevant market would be considered in determining the company's ________ share.

Accepted Answer

A)   Allocated
B)   Consumer
C)   Market
D)   Presumed
E)   AllowableF) None of the above
G) C) and D) C

Question 20

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)   Competitive
B)   Predatory
C)   Secondary
D)   Horizontal
E)   PrimaryF) B) and C)
G) None of the above

Exam 47: Antitrust Law

The requirement of Shirley that before she will sell scuba gear to a business,the business must carry her line of wet suits is a ______ arrangement.

Correct AnswerverifiedShow Answer

Which of the following violations would Prudence most likely be alleging with her claim that Benny was attempting to keep all the tour business for himself?

Correct AnswerverifiedShow Answer

What must be shown in order to establish a violation of Section 1 of the Sherman Act?

Correct AnswerverifiedIn order to constitute a violation of Se...View AnswerShow Answer

Which of the following standards allows a defendant to offer justification for a per se violation of Section 1 of the Sherman Act,in which case the court will engage in a rule-of-reason analysis?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a company merges with another company that is not a competitor or a buyer or seller to the company,that merger is called a ______ merger.

Correct AnswerverifiedShow Answer

In attempting to establish a violation of the Sherman Act,what type of trade violation would the government most likely allege?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

The Federal Trade Commission has been eliminated.

Correct AnswerverifiedShow Answer

Which of the following was the result in PepsiCo Inc.,v.The Coca-Cola Co.,the case in the text in which PepsiCo challenged Coca-Cola's loyalty policy by which independent food distributors (IFDs) agreed to not handle soft drink products of PepsiCo?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

The Sherman Act may not be constitutionally applied to foreign companies that conduct business in the U.S.

Correct AnswerverifiedShow Answer

Which of the following references the type of conglomerate merger that occurs when a company merges with another company producing a related product in order to add the related product to the company's production?

Correct AnswerverifiedShow Answer

Bid rigging is legal because it has recently been removed from the category of price-fixing.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in California v.Safeway,the case in the text involving whether an agreement between grocers to share revenues during the term of a labor dispute violated antitrust laws?

Correct AnswerverifiedShow Answer

In attempting to establish a violation of the Sherman Act,which of the following would be the offense the government would most likely allege?

Correct AnswerverifiedShow Answer

The relevant market would be considered in determining the company's ________ share.

Correct AnswerverifiedC

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

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