Question 1

The Sherman Act was passed in response to the general unpopularity of government
agencies.

Accepted Answer

A) True 
 B)False

Question 2

A retailer is told by the manufacturer the minimum price at which a product can be sold.In antitrust this is an example of:

Accepted Answer

A)  a tying arrangement
B)  resale price maintenance
C)  exclusive dealing
D)  a consignment arrangement
E)  none of the other choices

Question 3

In FTC v.Indiana Federation of Dentists,the Supreme Court held that First
Amendment freedom of speech allows the Federation to recommend to dentists that they not submit patient records to insurance companies.

Accepted Answer

A) True 
 B)False

Question 4

Under the Robinson-Patman Act,a producer may not be able to charge one retailer a lower price than it charges another retailer just because the first retailer buys more merchandise.Volume discounts can be a violation of the Robinson-Patman because,according to the law:

Accepted Answer

A)  price discounts injures low-income consumers
B)  price discounts unfairly target urban areas
C)  price discounts give large volume retailers an advantage over small volume retailers
D)  price discounts unfairly target urban areas and price discounts give large volume retailers an advantage over small volume retailers
E)  price discounts injures low-income consumers and price discounts give large volume retailers an advantage over small volume retailers

Question 5

FACT Pattern 20-1
MicroManage is the fastest growing home-software producer in the country.In 2000,it sold 6% of all home software in the U.S. ,but in 2011,it sold 55% of all home software.A recent issue of Computer Universe said that MicroManage was "the most dominant and aggressive of all home-software developers." Home software is a small part of the entire software industry.
In 2011,MicroManage proposed a merger with Game Master,its main rival.Game Master was responsible for 10% of all home-software sales in 2010.MicroManage's president says that the combination of the firms will allow MicroManage to lower costs and pass the savings on to its customers.
The Department of Justice filed suit to stop this merger,claiming the combination would give monopoly power to the merged firm.Justice insists that consumers would lose in the end
-Refer to Fact Pattern 20-1.Which case might a court use as precedent to determine whether or not the MicroManage merger is legal?

Accepted Answer

A)  Standard Oil Co.of New Jersey v.U.S.
B)  Broadcast Music,Inc.v.CBS
C)  NCAA v.Board of Regents
D)  Rylands v.Fletcher
E)  Palsgraf v.Long Island Railroad

Question 6

The antitrust standards of the European Union and the U.S.have been growing
further apart in such things as exclusive dealing and territorial restrictions.

Accepted Answer

A) True 
 B)False

Question 7

Under the ______________ two firms that plan to merge must notify the Antitrust Division of the Department of Justice or the Federal Trade Commission at least one month before the planned merger,if there is more than $50 million involved.

Accepted Answer

A)  Hart-Scott-Rodino Act
B)  Lanham Act
C)  Clayton Act
D)  Norris-LaGuardia Act
E)  Wagner Act

Question 8

In the case of U.S.v.Baker Hughes,concerning a merger of hardrock hydraulic underground drilling rig makers,the court held that the proposed merger:

Accepted Answer

A)  should not be stopped because survival of the industry was important to national security
B)  should be stopped because the sellers would have over 75% of the market
C)  should be stopped because buyers had insufficient power to insure competitive prices
D)  should be stopped because the market was saturated with such firms
E)  none of the other choices

Question 9

Violations of Sections 1 and 2 of the Sherman Act by a corporation can result in:

Accepted Answer

A)  up to 50 years in prison
B)  a fine of $1 million
C)  a fine of $100 million
D)  both a and b are correct
E)  both a and c are correct

Question 10

OPEC,the oil cartel,has been held not to violate the antitrust laws because of the
power-buyer defense.

Accepted Answer

A) True 
 B)False

Question 11

A key motive behind the Sherman Act was:

Accepted Answer

A)  concern over the undue influence banks had over Congress
B)  concern about competition faced by U.S.agricultural producers
C)  concern that businesses were too influential in state legislatures
D)  a desire to end import tariffs
E)  none of the other choices

Question 12

In State Oil Co.v.Khan,a gasoline distributor controlled the maximum gas sales markup that its gas station dealers could charge (maximum price fixing) .The Supreme Court held that:

Accepted Answer

A)  all vertical price fixing subject to a rule of reason
B)  vertical price fixing of maximum retail prices was illegal
C)  vertical price fixing may injure the ability of sellers to compete so is generally illegal
D)  vertical price fixing may cause dealers to be able to furnish more services in an anticompetitive manner
E)  none of the other choices

Question 13

Charging different prices in different markets for the same goods is called:

Accepted Answer

A)  boycott pricing
B)  vertical discrimination
C)  price disparagement
D)  boycotting
E)  none of the other choices

Question 14

The insurance industry is exempted from federal antitrust laws by the:

Accepted Answer

A)  Parker doctrine
B)  state action doctrine
C)  McCarran-Ferguson Act
D)  Noerr-Pennington doctrine
E)  National Insurance Act

Question 15

Which of the following groups could promote a boycott:

Accepted Answer

A)  consumers
B)  union members
C)  retailers
D)  wholesalers
E)  all of the other specific choices are possible

Question 16

When evaluating the relevant market in an antitrust case,both the product market and
the geographic market may be considered.

Accepted Answer

A) True 
 B)False

Question 17

The Parker doctrine allows state governments to restrict competition in industries,
such as cable television,and not violate antitrust laws.

Accepted Answer

A) True 
 B)False

Question 18

A firm's __________ refers to the percentage of the relevant market controlled by the firm.

Accepted Answer

A)  market power
B)  profitability
C)  market control
D)  market proportion
E)  none of the other choices are correct

Question 19

An agreement among businesses at the same level of industry to fix prices is:

Accepted Answer

A)  legal if the parties mutually agree (no duress) to lower their prices
B)  legal if the price set is reasonable to consumers
C)  usually illegal per se under the antitrust laws
D)  illegal unless the primary customers of the firms agree with the move
E)  legal if the FTC participated in the decision

Question 20

Horizontal market division allows competing firms to:

Accepted Answer

A)  be more efficient
B)  exercise monopoly power within a region
C)  hire fewer workers
D)  give better worker benefits
E)  diversify into more markets

Exam 20: Antitrust Law

The insurance industry is exempted from federal antitrust laws by the:

Correct Answer
verified

The Parker doctrine allows state governments to restrict competition in industries, such as cable television,and not violate antitrust laws.

Correct Answer
verified

When evaluating the relevant market in an antitrust case,both the product market and the geographic market may be considered.

Correct Answer
verified

Violations of Sections 1 and 2 of the Sherman Act by a corporation can result in:

Correct Answer
verified

A firm's __________ refers to the percentage of the relevant market controlled by the firm.

Correct Answer
verified

Correct Answer
verified

In FTC v.Indiana Federation of Dentists,the Supreme Court held that First Amendment freedom of speech allows the Federation to recommend to dentists that they not submit patient records to insurance companies.

Correct Answer
verified

Horizontal market division allows competing firms to:

Correct Answer
verified

In the case of U.S.v.Baker Hughes,concerning a merger of hardrock hydraulic underground drilling rig makers,the court held that the proposed merger:

Correct Answer
verified

In State Oil Co.v.Khan,a gasoline distributor controlled the maximum gas sales markup that its gas station dealers could charge (maximum price fixing) .The Supreme Court held that:

Correct Answer
verified

Which of the following groups could promote a boycott:

Correct Answer
verified

An agreement among businesses at the same level of industry to fix prices is:

Correct Answer
verified

OPEC,the oil cartel,has been held not to violate the antitrust laws because of the power-buyer defense.

Correct Answer
verified

The antitrust standards of the European Union and the U.S.have been growing further apart in such things as exclusive dealing and territorial restrictions.

Correct Answer
verified

A key motive behind the Sherman Act was:

Correct Answer
verified

Charging different prices in different markets for the same goods is called:

Correct Answer
verified

Under the Robinson-Patman Act,a producer may not be able to charge one retailer a lower price than it charges another retailer just because the first retailer buys more merchandise.Volume discounts can be a violation of the Robinson-Patman because,according to the law:

Correct Answer
verified

A retailer is told by the manufacturer the minimum price at which a product can be sold.In antitrust this is an example of:

Correct Answer
verified

Under the ______________ two firms that plan to merge must notify the Antitrust Division of the Department of Justice or the Federal Trade Commission at least one month before the planned merger,if there is more than $50 million involved.

Correct Answer
verified

The Sherman Act was passed in response to the general unpopularity of government agencies.

Correct Answer
verified

Exam 20: Antitrust Law

The insurance industry is exempted from federal antitrust laws by the:

Correct AnswerverifiedShow Answer

The Parker doctrine allows state governments to restrict competition in industries, such as cable television,and not violate antitrust laws.

Correct AnswerverifiedShow Answer

When evaluating the relevant market in an antitrust case,both the product market and the geographic market may be considered.

Correct AnswerverifiedShow Answer

Violations of Sections 1 and 2 of the Sherman Act by a corporation can result in:

Correct AnswerverifiedShow Answer

A firm's __________ refers to the percentage of the relevant market controlled by the firm.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In FTC v.Indiana Federation of Dentists,the Supreme Court held that First Amendment freedom of speech allows the Federation to recommend to dentists that they not submit patient records to insurance companies.

Correct AnswerverifiedShow Answer

Horizontal market division allows competing firms to:

Correct AnswerverifiedShow Answer

In the case of U.S.v.Baker Hughes,concerning a merger of hardrock hydraulic underground drilling rig makers,the court held that the proposed merger:

Correct AnswerverifiedShow Answer

In State Oil Co.v.Khan,a gasoline distributor controlled the maximum gas sales markup that its gas station dealers could charge (maximum price fixing) .The Supreme Court held that:

Correct AnswerverifiedShow Answer

Which of the following groups could promote a boycott:

Correct AnswerverifiedShow Answer

An agreement among businesses at the same level of industry to fix prices is:

Correct AnswerverifiedShow Answer

OPEC,the oil cartel,has been held not to violate the antitrust laws because of the power-buyer defense.

Correct AnswerverifiedShow Answer

The antitrust standards of the European Union and the U.S.have been growing further apart in such things as exclusive dealing and territorial restrictions.

Correct AnswerverifiedShow Answer

A key motive behind the Sherman Act was:

Correct AnswerverifiedShow Answer

Charging different prices in different markets for the same goods is called:

Correct AnswerverifiedShow Answer

Under the Robinson-Patman Act,a producer may not be able to charge one retailer a lower price than it charges another retailer just because the first retailer buys more merchandise.Volume discounts can be a violation of the Robinson-Patman because,according to the law:

Correct AnswerverifiedShow Answer

A retailer is told by the manufacturer the minimum price at which a product can be sold.In antitrust this is an example of:

Correct AnswerverifiedShow Answer

Under the ______________ two firms that plan to merge must notify the Antitrust Division of the Department of Justice or the Federal Trade Commission at least one month before the planned merger,if there is more than $50 million involved.

Correct AnswerverifiedShow Answer

The Sherman Act was passed in response to the general unpopularity of government agencies.

Correct AnswerverifiedShow Answer

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