Question 1

Global Services Corporation engages in trade practices that may violate antitrust law.The Federal Trade Commission has the power to act against unfair trade practices under

Accepted Answer

A)  the Clayton Act.
B)  the Federal Trade Commission Act.
C)  the Sherman Act.
D)  no law.

Question 2

North Mining Company and South Excavation Company agree to abide by the decisions of East Coast Financial Corporation as to their respective levels of production,markets,and prices,effectively reducing competition and increasing profits.This is most likely

Accepted Answer

A)  a common,legal,time-honored type of business arrangement.
B)  an illegal restraint on trade.
C)  an innovative,legally efficient approach to doing business.
D)  an outdated,but legal business trust.

Question 3

Fresh Vegetables,Inc.,a wholesaler,refuses to sell its produce to Good Mart Stores,Inc.,a retailer.Under the Sherman Act,this is

Accepted Answer

A)  "an unfair or deceptive act or practice."
B)  a per se violation.
C)  not a violation.
D)  subject to analysis under the rule of reason.

Question 4

The basic purpose of antitrust law is to regulate economic competition.

Accepted Answer

A) True 
 B)False

Question 5

Thermo Gas,Inc.,and Uno Oil Corporation refine and sell gasoline and other petroleum products.To limit the supply of gas on the market and thereby raise prices,Thermo Gas and Uno Oil agree to buy "excess" supplies from dealers and "dispose" of it.This is

Accepted Answer

A)  a horizontal restraint.
B)  a lateral restraint.
C)  a vertical restraint.
D)  not a restraint.

Question 6

Cooperative research by small-business firms is exempt from antitrust law.

Accepted Answer

A) True 
 B)False

Question 7

Excel Corporation conditions shipments of its products to Federated Stores,Inc.,on Federated's agreement not to buy products from Great Goods Company,Excel's competitor.This is

Accepted Answer

A)  an exclusive-dealing contract.
B)  a tying arrangement.
C)  price discrimination.
D)  a unilateral refusal to deal.

Question 8

Mango Corporation believes that Melon Corporation engages in anticompetitive behavior in an attempt to drive Mango and its other competitors out of the market.Antitrust laws can be enforced against Melon by

Accepted Answer

A)  Mango and its competitors only.
B)  Mango,its competitors,and the Federal Trade Commission only.
C)  Mango,its competitors,the Federal Trade Commission,and the U.S.Department of Justice.
D)  the Federal Trade Commission and U.S.Department of Justice only.

Question 9

Listen Up! Corporation books and promotes concerts and other entertainment events,for which Listen Up! also sells tickets.In weighing a challenge to Listen Up!'s "monopolistic" ticket prices,a court looks at the relevant geographic market.This encompasses

Accepted Answer

A)  only areas in which Listen Up! does not have monopoly power.
B)  only areas in which Listen Up! has monopoly power.
C)  the area in which Listen Up! and its competitors sell,and their customers buy,the tickets.
D)  the entire United States in all cases.

Question 10

An antitrust action is brought against Tri-State Transport Company,alleging the offense of attempted monopolization.To be guilty of this offense,Tri-State's attempt must have

Accepted Answer

A)  a dangerous probability of success.
B)  a deadly guaranty of success.
C)  a distant possibility of success.
D)  a distinct improbability of success.

Question 11

Under an exclusive-dealing contract,a seller promises a buyer a certain territory in which the buyer will have no direct competition.

Accepted Answer

A) True 
 B)False

Question 12

Tasty Eatin' Corporation merges with Hasty Burgers,Inc.This merger between firms that compete with each other in the same market is

Accepted Answer

A)  a horizontal merger.
B)  an interlocking directorate.
C)  a tying arrangement.
D)  a vertical merger.

Exam 39: Promoting Competition

Cooperative research by small-business firms is exempt from antitrust law.

Correct Answer
verified

North Mining Company and South Excavation Company agree to abide by the decisions of East Coast Financial Corporation as to their respective levels of production,markets,and prices,effectively reducing competition and increasing profits.This is most likely

Correct Answer
verified

Under an exclusive-dealing contract,a seller promises a buyer a certain territory in which the buyer will have no direct competition.

Correct Answer
verified

Fresh Vegetables,Inc.,a wholesaler,refuses to sell its produce to Good Mart Stores,Inc.,a retailer.Under the Sherman Act,this is

Correct Answer
verified

Global Services Corporation engages in trade practices that may violate antitrust law.The Federal Trade Commission has the power to act against unfair trade practices under

Correct Answer
verified

Listen Up! Corporation books and promotes concerts and other entertainment events,for which Listen Up! also sells tickets.In weighing a challenge to Listen Up!'s "monopolistic" ticket prices,a court looks at the relevant geographic market.This encompasses

Correct Answer
verified

The basic purpose of antitrust law is to regulate economic competition.

Correct Answer
verified

An antitrust action is brought against Tri-State Transport Company,alleging the offense of attempted monopolization.To be guilty of this offense,Tri-State's attempt must have

Correct Answer
verified

Thermo Gas,Inc.,and Uno Oil Corporation refine and sell gasoline and other petroleum products.To limit the supply of gas on the market and thereby raise prices,Thermo Gas and Uno Oil agree to buy "excess" supplies from dealers and "dispose" of it.This is

Correct Answer
verified

Tasty Eatin' Corporation merges with Hasty Burgers,Inc.This merger between firms that compete with each other in the same market is

Correct Answer
verified

Mango Corporation believes that Melon Corporation engages in anticompetitive behavior in an attempt to drive Mango and its other competitors out of the market.Antitrust laws can be enforced against Melon by

Correct Answer
verified

Excel Corporation conditions shipments of its products to Federated Stores,Inc.,on Federated's agreement not to buy products from Great Goods Company,Excel's competitor.This is

Correct Answer
verified

Exam 39: Promoting Competition

Cooperative research by small-business firms is exempt from antitrust law.

Correct AnswerverifiedShow Answer

North Mining Company and South Excavation Company agree to abide by the decisions of East Coast Financial Corporation as to their respective levels of production,markets,and prices,effectively reducing competition and increasing profits.This is most likely

Correct AnswerverifiedShow Answer

Under an exclusive-dealing contract,a seller promises a buyer a certain territory in which the buyer will have no direct competition.

Correct AnswerverifiedShow Answer

Fresh Vegetables,Inc.,a wholesaler,refuses to sell its produce to Good Mart Stores,Inc.,a retailer.Under the Sherman Act,this is

Correct AnswerverifiedShow Answer

Global Services Corporation engages in trade practices that may violate antitrust law.The Federal Trade Commission has the power to act against unfair trade practices under

Correct AnswerverifiedShow Answer

Listen Up! Corporation books and promotes concerts and other entertainment events,for which Listen Up! also sells tickets.In weighing a challenge to Listen Up!'s "monopolistic" ticket prices,a court looks at the relevant geographic market.This encompasses

Correct AnswerverifiedShow Answer

The basic purpose of antitrust law is to regulate economic competition.

Correct AnswerverifiedShow Answer

An antitrust action is brought against Tri-State Transport Company,alleging the offense of attempted monopolization.To be guilty of this offense,Tri-State's attempt must have

Correct AnswerverifiedShow Answer

Thermo Gas,Inc.,and Uno Oil Corporation refine and sell gasoline and other petroleum products.To limit the supply of gas on the market and thereby raise prices,Thermo Gas and Uno Oil agree to buy "excess" supplies from dealers and "dispose" of it.This is

Correct AnswerverifiedShow Answer

Tasty Eatin' Corporation merges with Hasty Burgers,Inc.This merger between firms that compete with each other in the same market is

Correct AnswerverifiedShow Answer

Mango Corporation believes that Melon Corporation engages in anticompetitive behavior in an attempt to drive Mango and its other competitors out of the market.Antitrust laws can be enforced against Melon by

Correct AnswerverifiedShow Answer

Excel Corporation conditions shipments of its products to Federated Stores,Inc.,on Federated's agreement not to buy products from Great Goods Company,Excel's competitor.This is

Correct AnswerverifiedShow Answer

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