Question 1

Rally Speedboat Corporation refuses to sell its products to Super Weekends,Inc.,a recreational water products dealership.This is

Accepted Answer

A)   an exclusive-dealing contract.
B)   a horizontal market division.
C)   attempted monopolization.
D)   a unilateral refusal to deal.

Question 2

Only private individuals can enforce the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Maximum resale price maintenance agreements are subject to analysis under the rule of reason.

Accepted Answer

A) True 
 B)False

Question 5

To acquire monopoly power in its market,Perfect Plastics,Inc.,sets its prices lower than its competitors.Under the Sherman Act,this is

Accepted Answer

A)   a per se violation.
B)   a violation if its competitors make similar deals.
C)   a violation if it thereby acquires monopoly power.
D)   not a violation.

Question 6

An act must have a substantial impact on interstate commerce to violate antitrust law.

Accepted Answer

A) True 
 B)False

Question 7

Luminescent Silicon Corporation,which controls 40 percent of the computer-chip market in the United States,merges with Micro Processors,Inc.,which controls 15 percent of the same market.This merger is

Accepted Answer

A)   a violation only if the result more clearly concentrates the market.
B)   a violation only if the result makes it more difficult for potential competitors to enter the market.
C)   a violation if the result more clearly concentrates the market and makes it more difficult for potential competitors to enter the market.
D)   not a violation.

Question 8

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.

Question 9

Conditioning the sale of one product on the purchase of another is a tying arrangement.

Accepted Answer

A) True 
 B)False

Question 10

Minimum resale price maintenance agreements are subject to analysis under the rule of reason.

Accepted Answer

A) True 
 B)False

Question 11

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 12

A joint refusal to deal with a particular person or firm is always a violation of antitrust law.

Accepted Answer

A) True 
 B)False

Question 13

An agreement between firms operating at different levels in the manufacturing and distribution process cannot violate antitrust law.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Seaside Cannery,Inc.,is one of many producers of canned seafood.Seaside refuses to sell its products to Port Harbor Restaurant Corporation.This refusal is most likely

Accepted Answer

A)   an anticompetitive practice in violation of the Clayton Act.
B)   a per se violation of the Sherman Act.
C)   a violation of the Sherman Act under the rule of reason.
D)   not a violation of antitrust law.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Fairway Products,Inc.,and Golly Golf Clubs Corporation lobby Congress to pass a law banning a competitor's product.This joint effort is probably

Accepted Answer

A)   a violation of antitrust statutes.
B)   exempt from antitrust enforcement.
C)   not subject to antitrust law.
D)   subject only to antitrust common law.

Question 18

The Association of Software Makers,which does not include all software producers,refuses to deal with any parties who do not carry the products of its members.Under the Sherman Act,this is

Accepted Answer

A)   a per se violation if it eliminates competition or prevents entry into a given market.
B)   a per se violation under all circumstances.
C)   subject to the rule of reason.
D)   not a violation.

Question 19

Master Manufacturing Corporation has exclusive control over the market for its product.Under the Sherman Act,this is

Accepted Answer

A)   a per se violation.
B)   a violation if it acquired this power through "business acumen."
C)   a violation if it acquired this power through "anticompetitive means."
D)   not a violation.

Question 20

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.

Exam 32: Promoting Competition

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

An agreement between firms operating at different levels in the manufacturing and distribution process cannot violate 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

Maximum resale price maintenance agreements are subject to analysis under the rule of reason.

Correct AnswerverifiedShow Answer

Luminescent Silicon Corporation,which controls 40 percent of the computer-chip market in the United States,merges with Micro Processors,Inc.,which controls 15 percent of the same market.This merger is

Correct AnswerverifiedShow Answer

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

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

An act must have a substantial impact on interstate commerce to violate antitrust law.

Correct AnswerverifiedShow Answer

Seaside Cannery,Inc.,is one of many producers of canned seafood.Seaside refuses to sell its products to Port Harbor Restaurant Corporation.This refusal is most likely

Correct AnswerverifiedShow Answer

Minimum resale price maintenance agreements are subject to analysis under the rule of reason.

Correct AnswerverifiedShow Answer

Master Manufacturing Corporation has exclusive control over the market for its product.Under the Sherman Act,this is

Correct AnswerverifiedShow Answer

To acquire monopoly power in its market,Perfect Plastics,Inc.,sets its prices lower than its competitors.Under the Sherman Act,this is

Correct AnswerverifiedShow Answer

Conditioning the sale of one product on the purchase of another is a tying arrangement.

Correct AnswerverifiedShow Answer

Fairway Products,Inc.,and Golly Golf Clubs Corporation lobby Congress to pass a law banning a competitor's product.This joint effort is probably

Correct AnswerverifiedShow Answer

The Association of Software Makers,which does not include all software producers,refuses to deal with any parties who do not carry the products of its members.Under the Sherman Act,this is

Correct AnswerverifiedShow Answer

Rally Speedboat Corporation refuses to sell its products to Super Weekends,Inc.,a recreational water products dealership.This is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Only private individuals can enforce the antitrust laws.

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

A joint refusal to deal with a particular person or firm is always a violation of antitrust law.

Correct AnswerverifiedShow Answer

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