Exam 38: Antitrust

A) Sherman Act only.
B) Clayton Act only,
C) Sherman Act and Clayton Act.
D) Sherman Act, Clayton Act, and Robinson-Patman Act.

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False

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A) "Has a competitor been harmed?"
B) "Has competition been harmed?"
C) "Will competitors be allowed to freely enter the market?"
D) "Will interstate commerce be affected?"

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A) a tying arrangement.
B) monopolization.
C) reciprocal dealing.
D) conscious parallelism.

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A) the Justice Department can initiate only noncriminal charges against the violator.
B) the Federal Trade Commission may file criminal proceedings against the violator.
C) any private person or company that has been harmed by the violator can file a lawsuit to recover damages.
D) both the Justice Department and the Federal Trade Commission can bring criminal proceedings.

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A) is legal and acceptable practice in the construction industry to spread work more evenly.
B) is a per se violation of the Sherman Act.
C) is a rule of reason violation of the Sherman Act.
D) violates ethical, but not legal, standards.

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A) is a per se violation of Section 1 of the Sherman Act.
B) is a rule of reason violation of the Sherman Act.
C) is not a violation of the Sherman Act.
D) is illegal if it adversely affects one party over the other.

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A) It has rarely been enforced in recent years.
B) The U.S. government has stepped up its enforcement during the last decade.
C) It has been declared unconstitutional.
D) It was repealed by Congress in 1998.

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A) Price fixing
B) Reciprocal dealing
C) Price discrimination
D) Vertical mergers

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A

A) Sherman Act
B) Robinson-Patman Act
C) Clayton Act
D) Chicago School Act

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Horizontal price-fixing is the agreement...

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A) market division.
B) price fixing.
C) reciprocal dealing.
D) bid-rigging.

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Mighty Lock would sue Mega Hardware for ...

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A per se violation is a violation that is automatically illegal.It is irrelevant what the effect of the given conduct is on competition;the conduct,in and of itself,is illegal.Defendants are subject to both criminal and civil penalties.The Justice Department has sought criminal sanctions against per se violators.Examples would include price fixing,bid-rigging,or an agreement by competitors to divide their market among themselves. A rule of reason violation will be illegal only if it results in harm to competition.Such violations are viewed on a case-by-case basis.Examples of rule of reason situations would include refusal to deal arrangements and reciprocal dealing agreements.

A) calculate the estimated amount of lost profits.
B) determine the difference between the two prices and multiply the difference by the number of units purchased.
C) allow a jury to determine the amount of punitive damages without using any particular formula.
D) add both prices together and divide by the number of units purchased.

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A) Pat's Pen Co.will win if it can prove that it has been selling to the national chain continuously at the cheaper rate.
B) Pat's Pen Co. will win if it can prove that it did not intend to economically harm Salley's Stationery.
C) Salley's Stationery will win if it can prove price discrimination occured and that it lessened competition.
D) Salley's Stationery will win since price discrimination is a per se violation with no real defenses.

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