Question 1

Monopoly power may be proved by evidence that a firm used its power to control prices.

Accepted Answer

A) True 
 B)False

Question 2

The primary measure of monopoly power is a competitor's assessment of the acts of a firm under review.

Accepted Answer

A) True 
 B)False

Question 3

By contract,Oil Shale Corporation forbids Petro,Inc. ,a wholesale buyer of Oil Shale's products,from purchasing the products of its competitors.This exclusive-dealing contract is allowed​

Accepted Answer

A)  under any circumstances.
B)  if its effect is to cause a competitor a loss of any business.
C)  if its effect is to substantially lessen competition.
D)  unless there is no effect on a competitor.

Question 4

Joint refusals to deal are not subject to scrutiny under the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 5

To acquire monopoly power in its market,Sugar,Inc. ,sets its prices substantially below the costs of production.Under antitrust law,this is​

Accepted Answer

A)  a per se violation.
B)  a violation if the firm's competitors set similar prices.
C)  a violation if the firm thereby acquires monopoly power.
D)  not a violation.

Question 6

Omni Discount Company and Price-Lo Stores,Inc. ,agree to abide by the decisions of Quality Marketing 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D)  an outdated,but legal business trust.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 7

Through smart business management,Harvest Bakery obtains monopoly power in its market.This is​

Accepted Answer

A)  a per se violation of Section 1 of the Sherman Act.
B)  an illegal restraint on trade.
C)  not an antitrust violation.
D)  a per se violation of Section 2 of the Sherman Act.

Question 8

Fact Pattern 27-1
Pharma Corporation makes and sells QualMed,the most prescribed name-brand blood pressure-lowering medication.Renew Drugs,Inc. ,has the potential to make a generic version of the same drug.
-Refer to Fact Pattern 27-1.A court would most likely rule that the agreement between Pharma and Renew is​

Accepted Answer

A)  a deal that neither restrains trade or harms competition.
B)  a legal restraint of trade.
C)  a per se violation of the Sherman Act.
D)  subject to analysis under the rule of reason.

Question 9

Size alone determines whether a firm is a monopoly.

Accepted Answer

A) True 
 B)False

Question 10

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Accepted Answer

A) True 
 B)False

Question 11

A market division by class of customer between rival firms does not violate antitrust law.

Accepted Answer

A) True 
 B)False

Question 12

Earthgro,Inc. ,is one of many producers of cut flowers.Earthgro refuses to sell its products to Florist Shops Corporation.Under antitrust law,this refusal is most likely​

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 13

Fresh Vegetables,Inc. ,a wholesaler,refuses to sell its produce to Good Foods Marketplace,Inc. ,a retailer.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 14

A group boycott that is intended to eliminate competition is legal.

Accepted Answer

A) True 
 B)False

Question 15

For products that are sold nationwide,the relevant geographic market is the entire globe.

Accepted Answer

A) True 
 B)False

Question 16

Clear View Corporation offers to sell its flat-panel display monitors to Best Computer & Video,Inc. ,only if Best agrees to buy Clear View's servicing of its products along with the monitors.This is​

Accepted Answer

A)  an exclusive-dealing contract.
B)  a tying arrangement.
C)  price discrimination.
D)  business acumen.

Question 17

The Sherman Act is an example of legislation designed to curb anticompetitive business practices.

Accepted Answer

A) True 
 B)False

Question 18

An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement actually constitutes a reasonable restraint of trade.

Accepted Answer

A) True 
 B)False

Question 19

Pump Makers Inc.makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers.This is​

Accepted Answer

A)  an exclusive-dealing contract.
B)  a tying arrangement.
C)  price discrimination.
D)  a group boycott.

Question 20

Trail Bikes,Inc. ,makes and distributes Trail-brand bicycles and accessories to authorized dealers.To prevent price-cutting by dealers in direct competition,Trail Bikes imposes limits on where each dealer can sell Trail products.This is​

Accepted Answer

A)  a territorial restriction.
B)  a resale price maintenance agreement.
C)  smart marketing.
D)  a price-fixing agreement.

Exam 27: Antitrust Law

By contract,Oil Shale Corporation forbids Petro,Inc. ,a wholesale buyer of Oil Shale's products,from purchasing the products of its competitors.This exclusive-dealing contract is allowed

Correct Answer
verified

Clear View Corporation offers to sell its flat-panel display monitors to Best Computer & Video,Inc. ,only if Best agrees to buy Clear View's servicing of its products along with the monitors.This is

Correct Answer
verified

To acquire monopoly power in its market,Sugar,Inc. ,sets its prices substantially below the costs of production.Under antitrust law,this is

Correct Answer
verified

A group boycott that is intended to eliminate competition is legal.

Correct Answer
verified

Trail Bikes,Inc. ,makes and distributes Trail-brand bicycles and accessories to authorized dealers.To prevent price-cutting by dealers in direct competition,Trail Bikes imposes limits on where each dealer can sell Trail products.This is

Correct Answer
verified

The primary measure of monopoly power is a competitor's assessment of the acts of a firm under review.

Correct Answer
verified

Fresh Vegetables,Inc. ,a wholesaler,refuses to sell its produce to Good Foods Marketplace,Inc. ,a retailer.This is

Correct Answer
verified

Correct Answer
verified

An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement actually constitutes a reasonable restraint of trade.

Correct Answer
verified

Through smart business management,Harvest Bakery obtains monopoly power in its market.This is

Correct Answer
verified

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Correct Answer
verified

For products that are sold nationwide,the relevant geographic market is the entire globe.

Correct Answer
verified

Monopoly power may be proved by evidence that a firm used its power to control prices.

Correct Answer
verified

Earthgro,Inc. ,is one of many producers of cut flowers.Earthgro refuses to sell its products to Florist Shops Corporation.Under antitrust law,this refusal is most likely

Correct Answer
verified

Omni Discount Company and Price-Lo Stores,Inc. ,agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production,markets,and prices,effectively reducing competition and increasing profits.This is most likely

Correct Answer
verified

Size alone determines whether a firm is a monopoly.

Correct Answer
verified

The Sherman Act is an example of legislation designed to curb anticompetitive business practices.

Correct Answer
verified

Pump Makers Inc.makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers.This is

Correct Answer
verified

Joint refusals to deal are not subject to scrutiny under the Sherman Act.

Correct Answer
verified

A market division by class of customer between rival firms does not violate antitrust law.

Correct Answer
verified

Exam 27: Antitrust Law

By contract,Oil Shale Corporation forbids Petro,Inc. ,a wholesale buyer of Oil Shale's products,from purchasing the products of its competitors.This exclusive-dealing contract is allowed​

Correct AnswerverifiedShow Answer

Clear View Corporation offers to sell its flat-panel display monitors to Best Computer & Video,Inc. ,only if Best agrees to buy Clear View's servicing of its products along with the monitors.This is​

Correct AnswerverifiedShow Answer

To acquire monopoly power in its market,Sugar,Inc. ,sets its prices substantially below the costs of production.Under antitrust law,this is​

Correct AnswerverifiedShow Answer

A group boycott that is intended to eliminate competition is legal.

Correct AnswerverifiedShow Answer

Trail Bikes,Inc. ,makes and distributes Trail-brand bicycles and accessories to authorized dealers.To prevent price-cutting by dealers in direct competition,Trail Bikes imposes limits on where each dealer can sell Trail products.This is​

Correct AnswerverifiedShow Answer

The primary measure of monopoly power is a competitor's assessment of the acts of a firm under review.

Correct AnswerverifiedShow Answer

Fresh Vegetables,Inc. ,a wholesaler,refuses to sell its produce to Good Foods Marketplace,Inc. ,a retailer.This is​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement actually constitutes a reasonable restraint of trade.

Correct AnswerverifiedShow Answer

Through smart business management,Harvest Bakery obtains monopoly power in its market.This is​

Correct AnswerverifiedShow Answer

Insurance companies are exempt from antitrust laws whenever state regulation exists.

Correct AnswerverifiedShow Answer

For products that are sold nationwide,the relevant geographic market is the entire globe.

Correct AnswerverifiedShow Answer

Monopoly power may be proved by evidence that a firm used its power to control prices.

Correct AnswerverifiedShow Answer

Earthgro,Inc. ,is one of many producers of cut flowers.Earthgro refuses to sell its products to Florist Shops Corporation.Under antitrust law,this refusal is most likely​

Correct AnswerverifiedShow Answer

Omni Discount Company and Price-Lo Stores,Inc. ,agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production,markets,and prices,effectively reducing competition and increasing profits.This is most likely​

Correct AnswerverifiedShow Answer

Size alone determines whether a firm is a monopoly.

Correct AnswerverifiedShow Answer

The Sherman Act is an example of legislation designed to curb anticompetitive business practices.

Correct AnswerverifiedShow Answer

Pump Makers Inc.makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers.This is​

Correct AnswerverifiedShow Answer

Joint refusals to deal are not subject to scrutiny under the Sherman Act.

Correct AnswerverifiedShow Answer

A market division by class of customer between rival firms does not violate antitrust law.

Correct AnswerverifiedShow Answer

By contract,Oil Shale Corporation forbids Petro,Inc. ,a wholesale buyer of Oil Shale's products,from purchasing the products of its competitors.This exclusive-dealing contract is allowed

Correct Answer
verified

Clear View Corporation offers to sell its flat-panel display monitors to Best Computer & Video,Inc. ,only if Best agrees to buy Clear View's servicing of its products along with the monitors.This is

Correct Answer
verified

To acquire monopoly power in its market,Sugar,Inc. ,sets its prices substantially below the costs of production.Under antitrust law,this is

Correct Answer
verified

Correct Answer
verified

Trail Bikes,Inc. ,makes and distributes Trail-brand bicycles and accessories to authorized dealers.To prevent price-cutting by dealers in direct competition,Trail Bikes imposes limits on where each dealer can sell Trail products.This is

Correct Answer
verified

Correct Answer
verified

Fresh Vegetables,Inc. ,a wholesaler,refuses to sell its produce to Good Foods Marketplace,Inc. ,a retailer.This is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Through smart business management,Harvest Bakery obtains monopoly power in its market.This is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Earthgro,Inc. ,is one of many producers of cut flowers.Earthgro refuses to sell its products to Florist Shops Corporation.Under antitrust law,this refusal is most likely

Correct Answer
verified

Omni Discount Company and Price-Lo Stores,Inc. ,agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production,markets,and prices,effectively reducing competition and increasing profits.This is most likely

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Pump Makers Inc.makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation-a maker of fire trucks-on Quality's agreement to buy additional pumps only from Pump Makers.This is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified