Question 1

In expanding its policy of enforcement regarding the Sherman Act to cover conduct by foreign companies that harms exports, the Justice Department has indicated that it will focus primarily on boycotts and cartels that injure the export of U.S. products and services.

Accepted Answer

A) True 
 B)False

Question 2

A manufacturer agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus .50 per bowl. This is:

Accepted Answer

A)   horizontal price fixing.
B)   vertical price fixing.
C)   vertical market allocation.
D)   a group boycott.

Question 3

The National Cooperative Research Act is designed to inhibit formation of joint ventures.

Accepted Answer

A) True 
 B)False

Question 4

The Federal Trade Commission can act like a judicial body in conducting hearings and issuing orders to cease and desist.

Accepted Answer

A) True 
 B)False

Question 5

If a type of restraint is characterized as per se illegal:

Accepted Answer

A)   the plaintiff need only show that the type of restraint occurred.
B)   the defendants may defend on the basis that the restraint was reasonable.
C)   the court is required to conduct extensive economic analysis into the type of harm caused or the business excuse for use of the restraint.
D)   the plaintiff must prove that the restraint limited competition.

Question 6

If Hyvac Vacuum Cleaners requires that Hyvac bags be used for the warranty to be valid, under the Sherman Act, this is:

Accepted Answer

A)   illegal per se.
B)   a tying arrangement, which is always judged by rule of reason.
C)   either illegal per se or judged by the rule of reason depending on the economic power of the seller and the amount of interstate commerce in cleaner bags affected.
D)   no violation.

Question 7

The 1936 Act prohibiting price discrimination in interstate commerce involving commodities of like grade and quality is the:

Accepted Answer

A)   Sherman Act.
B)   Clayton Act.
C)   Robinson-Patman Act.
D)   Federal Trade Commission Act.

Question 8

The National Tax Accountants Professional Association (TAPA)  has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:

Accepted Answer

A)   a per se price-fixing violation of the Sherman Act.
B)   not a violation of the Sherman Act, because it has been made by a professional association.
C)   not a violation of the Sherman Act, because a fee is different from a price.
D)   subject to the rule of reason.

Question 9

Boycotts that are in violation of the Sherman Act include:

Accepted Answer

A)   a seller's refusal to deal with any particular buyer.
B)   a manufacturer who refuses to sell to a retailer who persists in selling below the manufacturer's suggested retail price.
C)   when two or more firms that have market power agree not to deal with a third party, thereby eliminating competition.
D)   cooperative agreements designed to increase economic efficiency and render markets more competitive.

Question 10

The definition of price-fixing includes agreements that:

Accepted Answer

A)   may, among other things, depress prices.
B)   stabilize prices.
C)   raise prices.
D)   All of these.

Question 11

Three of the airline companies agree that they will not go any lower than $100 each way for coast-to-coast tickets. This is:

Accepted Answer

A)   vertical price maintenance.
B)   horizontal group boycott.
C)   vertical market allocation.
D)   horizontal price fixing.

Question 12

The Clayton Act:

Accepted Answer

A)   was intended to stop certain trade practices before they become restraints of trade.
B)   added criminal sanctions to the Sherman Act.
C)   repealed the Robinson-Patman Act.
D)   included labor organizations in its coverage.

Question 13

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, corporate offenders who violate
Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Accepted Answer

A) True 
 B)False

Question 14

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Accepted Answer

A) True 
 B)False

Question 15

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, individuals who violate the Sherman
Antitrust Act may be imprisoned for ten years and fined up to $1,000,000.

Accepted Answer

A) True 
 B)False

Question 16

A restraint of trade may be classified as either horizontal or vertical.

Accepted Answer

A) True 
 B)False

Question 17

The National Cooperative Research Act:

Accepted Answer

A)   prohibits using the rule of reason test in judging joint ventures in research and development of new technology.
B)   is designed to clear up uncertainty about the legality of joint ventures.
C)   now requires treble damages if joint ventures are formed in violation of Section 1 of the Sherman Act.
D)   All of these.

Question 18

Margaret tells the members of the Raleigh Association of Restaurant Owners that they will be able to get a better price on linen supplies (tablecloths, napkins)  if they will deal with one supplier rather than split their business between two. They all know Margaret deals with Niagara Linen rather than Cayuga. Under the Sherman Act, if they all sign contracts with Niagara:

Accepted Answer

A)   there is no violation since there is no express agreement to boycott Cayuga.
B)   illegality may be inferred from this conduct.
C)   there is no concerted action.
D)   this is horizontal market allocation.

Question 19

Tying arrangements have been labeled by the Supreme Court as serving "hardly any purpose beyond the suppression of competition."

Accepted Answer

A) True 
 B)False

Question 20

Major, Inc. has 68% of the market share in a particular geographic region for one of its products. Does Major have a monopoly? Explain.

Accepted Answer

Monopoly power is the ability to control...

Exam 40: Antitrust

The Federal Trade Commission can act like a judicial body in conducting hearings and issuing orders to cease and desist.

Correct Answer
verified

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Correct Answer
verified

If Hyvac Vacuum Cleaners requires that Hyvac bags be used for the warranty to be valid, under the Sherman Act, this is:

Correct Answer
verified

The Clayton Act:

Correct Answer
verified

Three of the airline companies agree that they will not go any lower than $100 each way for coast-to-coast tickets. This is:

Correct Answer
verified

Tying arrangements have been labeled by the Supreme Court as serving "hardly any purpose beyond the suppression of competition."

Correct Answer
verified

In expanding its policy of enforcement regarding the Sherman Act to cover conduct by foreign companies that harms exports, the Justice Department has indicated that it will focus primarily on boycotts and cartels that injure the export of U.S. products and services.

Correct Answer
verified

A manufacturer agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus .50 per bowl. This is:

Correct Answer
verified

The National Cooperative Research Act:

Correct Answer
verified

Major, Inc. has 68% of the market share in a particular geographic region for one of its products. Does Major have a monopoly? Explain.

Correct Answer
verified
Monopoly power is the ability to control...
View Answer

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Correct Answer
verified

The National Cooperative Research Act is designed to inhibit formation of joint ventures.

Correct Answer
verified

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, individuals who violate the Sherman Antitrust Act may be imprisoned for ten years and fined up to $1,000,000.

Correct Answer
verified

The definition of price-fixing includes agreements that:

Correct Answer
verified

Correct Answer
verified

The 1936 Act prohibiting price discrimination in interstate commerce involving commodities of like grade and quality is the:

Correct Answer
verified

A restraint of trade may be classified as either horizontal or vertical.

Correct Answer
verified

If a type of restraint is characterized as per se illegal:

Correct Answer
verified

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:

Correct Answer
verified

Boycotts that are in violation of the Sherman Act include:

Correct Answer
verified

Exam 40: Antitrust

The Federal Trade Commission can act like a judicial body in conducting hearings and issuing orders to cease and desist.

Correct AnswerverifiedShow Answer

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Correct AnswerverifiedShow Answer

If Hyvac Vacuum Cleaners requires that Hyvac bags be used for the warranty to be valid, under the Sherman Act, this is:

Correct AnswerverifiedShow Answer

The Clayton Act:

Correct AnswerverifiedShow Answer

Three of the airline companies agree that they will not go any lower than $100 each way for coast-to-coast tickets. This is:

Correct AnswerverifiedShow Answer

Tying arrangements have been labeled by the Supreme Court as serving "hardly any purpose beyond the suppression of competition."

Correct AnswerverifiedShow Answer

In expanding its policy of enforcement regarding the Sherman Act to cover conduct by foreign companies that harms exports, the Justice Department has indicated that it will focus primarily on boycotts and cartels that injure the export of U.S. products and services.

Correct AnswerverifiedShow Answer

A manufacturer agrees to sell the distributor 1,000 boxes of 2-quart bowls only if he agrees to resell to the retailer at cost plus $1.10 per bowl and the retailer must agree to sell at no less than his cost plus .50 per bowl. This is:

Correct AnswerverifiedShow Answer

The National Cooperative Research Act:

Correct AnswerverifiedShow Answer

Major, Inc. has 68% of the market share in a particular geographic region for one of its products. Does Major have a monopoly? Explain.

Correct AnswerverifiedMonopoly power is the ability to control...View AnswerShow Answer

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Correct AnswerverifiedShow Answer

The National Cooperative Research Act is designed to inhibit formation of joint ventures.

Correct AnswerverifiedShow Answer

Under the Antitrust Criminal Penalty Enhancement and Reform Act of 2004, individuals who violate the Sherman Antitrust Act may be imprisoned for ten years and fined up to $1,000,000.

Correct AnswerverifiedShow Answer

The definition of price-fixing includes agreements that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The 1936 Act prohibiting price discrimination in interstate commerce involving commodities of like grade and quality is the:

Correct AnswerverifiedShow Answer

A restraint of trade may be classified as either horizontal or vertical.

Correct AnswerverifiedShow Answer

If a type of restraint is characterized as per se illegal:

Correct AnswerverifiedShow Answer

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:

Correct AnswerverifiedShow Answer

Boycotts that are in violation of the Sherman Act include:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Monopoly power is the ability to control...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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