Question 1

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

Accepted Answer

A)  Regulation
B)  Competition
C)  Control
D)  Efficiency
E)  SuccessF) B) and D)
G) D) and E)

Question 2

Please list and describe the three specific types of injuries under the Robinson-Patman Act.

Accepted Answer

The three specific types of injuries are...

Question 3

The task of identifying which specific behaviors were prohibited under the Sherman Act was left to which of the following?

Accepted Answer

A)  Congress,which amends the Sherman Act from time to time to set forth additional specific offenses.
B)  The courts.
C)  State legislatures.
D)  Local governing bodies.
E)  Both state legislatures and local governing bodies.F) None of the above
G) B) and E)

Question 4

Foreign companies are never subject to the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 5

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)  Joining
B)  Horizontal
C)  Vertical
D)  Predatory
E)  ConglomerateF) A) and D)
G) All of the above

Question 6

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?

Accepted Answer

A)  The court ruled that the agreement was a horizontal price-fixing conspiracy and thus a violation of the Sherman Act.
B)  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.
C)  The court ruled that the newness of the market and few competitors necessitated some sort of price fixing to encourage efficiency in the market.
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 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") .F) A) and E)
G) B) and E)

Question 7

Sarita and her friend Jonah both own flower shops.Their shops are in adjoining towns located approximately 10 miles apart.Sarita agrees that she will not sell flowers for delivery in Jonah's town in return for Jonah agreeing that he will not sell flowers for delivery in Sarita's town.Have Sarita and Jonah committed any antitrust violation? If so,what is the violation and under what standard would it be reviewed?

Accepted Answer

They have violated Section 1 o...

Question 8

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

Accepted Answer

A)  vertically restrained efficiency
B)  engaged in bid rigging
C)  engaged in price fixing
D)  established a monopoly
E)  monopolizedF) A) and C)
G) None of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which two markets does a court consider in identifying the relevant market for monopolization purposes?

Accepted Answer

A)  Reasonable and customer
B)  Reasonable and product
C)  Geographic and customer
D)  Customer and product
E)  Product and geographicF) B) and C)
G) A) and E)

Question 11

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 Section 2 of the Sherman Act?

Accepted Answer

A)  No,because states are exempt from Section 2 of the Sherman Act.
B)  Yes,because they have established a horizontal restraint on trade.
C)  No,unless it can be shown they actively intended to create a monopoly.
D)  Yes,if it can be shown they have engaged in predatory pricing.
E)  Yes,because they have created a monopoly.F) B) and C)
G) A) and E)

Question 12

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

Accepted Answer

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

Question 13

According to economic theory,companies with monopoly power use their economic power to harm the consumer by:

Accepted Answer

A)  limiting opportunity for product monopolies among specialized producers.
B)  limiting opportunity for developing competitive products.
C)  flooding the market with choices.
D)  raising production to unmatchable levels.
E)  limiting production and raising prices.F) D) and E)
G) B) and E)

Question 14

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)  Consumer misappropriation
B)  Charge arrangement
C)  Price fixing
D)  Price gouging
E)  Price raisingF) A) and D)
G) B) and C)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Congress passed the Sherman Act by what U.S.Constitutional authority?

Accepted Answer

A)  Through its authority to prevent discrimination.
B)  Through its authority under the First Amendment.
C)  Through its authority under the Fourth Amendment.
D)  Through its authority to regulate interstate commerce.
E)  Pursuant to the due process clause contained in both the Fifth and Fourteenth Amendments.F) D) and E)
G) A) and D)

Question 17

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?

Accepted Answer

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

Question 18

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?

Accepted Answer

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

Question 19

Have Adam and Zach violated the Sherman Act?

Accepted Answer

A)  No,there is no violation because they have not established a monopoly.
B)  Yes,they violated Section 2.
C)  No,there is no violation because they are not engaged in intrastate commerce.
D)  Yes,they violated Section 1.
E)  No,there is no violation because at least three businesses must be involved in order to establish a violation of the Sherman Act.F) All of the above
G) A) and B)

Question 20

When was the Sherman Act enacted?

Accepted Answer

A)  1925
B)  1890
C)  1943
D)  1935
E)  1958F) A) and E)
G) B) and D)

Exam 47: Antitrust Law

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

Correct Answer
verified

According to economic theory,companies with monopoly power use their economic power to harm the consumer by:

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

Please list and describe the three specific types of injuries under the Robinson-Patman Act.

Correct Answer
verified
The three specific types of injuries are...
View Answer

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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The task of identifying which specific behaviors were prohibited under the Sherman Act was left to which of the following?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
They have violated Section 1 o...
View Answer

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

Correct Answer
verified

Have Adam and Zach violated the Sherman Act?

Correct Answer
verified

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?

Correct Answer
verified

Correct Answer
verified

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 Answer
verified

Foreign companies are never subject to the Sherman Act.

Correct Answer
verified

When was the Sherman Act enacted?

Correct Answer
verified

Congress passed the Sherman Act by what U.S.Constitutional authority?

Correct Answer
verified

Which two markets does a court consider in identifying the relevant market for monopolization purposes?

Correct Answer
verified

Exam 47: Antitrust Law

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

Correct AnswerverifiedShow Answer

According to economic theory,companies with monopoly power use their economic power to harm the consumer by:

Correct AnswerverifiedShow Answer

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

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

Please list and describe the three specific types of injuries under the Robinson-Patman Act.

Correct AnswerverifiedThe three specific types of injuries are...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The task of identifying which specific behaviors were prohibited under the Sherman Act was left to which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThey have violated Section 1 o...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Have Adam and Zach violated the Sherman Act?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Foreign companies are never subject to the Sherman Act.

Correct AnswerverifiedShow Answer

When was the Sherman Act enacted?

Correct AnswerverifiedShow Answer

Congress passed the Sherman Act by what U.S.Constitutional authority?

Correct AnswerverifiedShow Answer

Which two markets does a court consider in identifying the relevant market for monopolization purposes?

Correct AnswerverifiedShow Answer

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The three specific types of injuries are...
View Answer

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They have violated Section 1 o...
View Answer

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