Question 1

An antitrust action is brought against Tri-State Transport Company, al?leging the offense of attempted monopolization. To be guilty of this of?fense, 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.E) A) and D)
F) B) and D)

Question 2

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 3

Helio Company can process hydrogen into an inexpensive fuel for internal combustion engines. As an innovator in its market, Helio currently has the power to affect the price of its product. This is

Accepted Answer

A)   market power.
B)   predatory pricing.
C)   price discrimination.
D)   price-fixing.E) A) and B)
F) A) and C)

Question 4

International Software, Inc., conditions the sale of one of its products on Nationwide Office System's agreeing to buy another of International's products. This deal is

Accepted Answer

A)   legal, depending on its purpose and the effect on competition.
B)   legal, depending on production and transportation costs.
C)   legal under any circumstances.
D)   not legal under any circumstances.E) A) and D)
F) B) and C)

Question 5

No person may be a director for two or more competing corporations at the same time.

Accepted Answer

A) True 
 B)False

Question 6

Mango Corporation believes that Melon Corporation engages in anticom?peti?tive 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.E) A) and D)
F) C) and D)

Question 7

Under what circumstances would Mom's Tools & Hardware, a small store in the middle of Nowhere, a small, isolated town, be considered a mo?nopoly? If Mom's is a monopoly, is it in violation of antitrust law?

Accepted Answer

The elements of the offense of monopoliz...

Question 8

The United 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 group boycott 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.E) A) and B)
F) A) and C)

Question 9

A market division by class of customer between rival firms is a viola?tion of antitrust law.

Accepted Answer

A) True 
 B)False

Question 10

To violate antitrust law, an attempt to monopolize a market must be intended to exclude competition and garner monopoly power.

Accepted Answer

A) True 
 B)False

Question 11

Enterprising Business Corporation may be engaging in conduct that vio?lates the Sherman Act. To bring an action against the firm requires that its conduct have a sig?nificant impact on

Accepted Answer

A)   international commerce.
B)   Internet commerce.
C)   interstate commerce.
D)   intrastate commerce.E) B) and C)
F) A) and B)

Question 12

A divestiture is an order to a company to cease, or divest itself of, its an?ticompetitive conduct.

Accepted Answer

A) True 
 B)False

Question 13

Cardio, Inc., makes and sells Drawdown, the most prescribed name-brand heart medication. Emitate Corporation has the potential to make a generic version of the same drug. Cardio pays Emitate not to sell its product. This is most likely

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.E) B) and D)
F) A) and D)

Question 14

Persons in foreign nations cannot be subject to U.S. antitrust law.

Accepted Answer

A) True 
 B)False

Question 15

A geographical market division between rival firms is not a violation of antitrust laws.

Accepted Answer

A) True 
 B)False

Question 16

A market in which there is more than one seller, even if only a limited number, cannot be a monopoly.

Accepted Answer

A) True 
 B)False

Question 17

Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies, Inc., only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products, even though there are other corn sellers from whom Nice Candies could buy. This is

Accepted Answer

A)   an exclusive-dealing contract.
B)   a tying arrangement.
C)   price discrimination.
D)   price fixing.E) B) and D)
F) C) and D)

Question 18

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

Accepted Answer

A)   a group boycott.
B)   a horizontal market division.
C)   attempted monopolization.
D)   a unilateral refusal to deal.E) B) and C)
F) A) and B)

Question 19

Press Corporation, a disk manufacturer, sells its DVDs in certain quan?ti?ties to Quik Shows, a retailer, for $275 but charges Right Stuff, a com?peti?tive re?tailer, $350. This is most likely a violation of

Accepted Answer

A)   the Clayton Act.
B)   the Federal Trade Commission Act.
C)   the Interstate Commerce Act.
D)   the Sherman Act.E) B) and D)
F) A) and D)

Question 20

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.E) B) and C)
F) A) and D)

Exam 46: Antitrust Law

Under what circumstances would Mom's Tools & Hardware, a small store in the middle of Nowhere, a small, isolated town, be considered a mo?nopoly? If Mom's is a monopoly, is it in violation of antitrust law?

Correct AnswerverifiedThe elements of the offense of monopoliz...View AnswerShow Answer

International Software, Inc., conditions the sale of one of its products on Nationwide Office System's agreeing to buy another of International's products. This deal is

Correct AnswerverifiedShow Answer

Mango Corporation believes that Melon Corporation engages in anticom?peti?tive 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

Helio Company can process hydrogen into an inexpensive fuel for internal combustion engines. As an innovator in its market, Helio currently has the power to affect the price of its product. This is

Correct AnswerverifiedShow Answer

A geographical market division between rival firms is not a violation of antitrust laws.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A market in which there is more than one seller, even if only a limited number, cannot be a monopoly.

Correct AnswerverifiedShow Answer

A divestiture is an order to a company to cease, or divest itself of, its an?ticompetitive conduct.

Correct AnswerverifiedShow Answer

To violate antitrust law, an attempt to monopolize a market must be intended to exclude competition and garner monopoly power.

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

Cardio, Inc., makes and sells Drawdown, the most prescribed name-brand heart medication. Emitate Corporation has the potential to make a generic version of the same drug. Cardio pays Emitate not to sell its product. This is most likely

Correct AnswerverifiedShow Answer

The United 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 group boycott is

Correct AnswerverifiedShow Answer

Enterprising Business Corporation may be engaging in conduct that vio?lates the Sherman Act. To bring an action against the firm requires that its conduct have a sig?nificant impact on

Correct AnswerverifiedShow Answer

Persons in foreign nations cannot be subject to U.S. antitrust law.

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

Press Corporation, a disk manufacturer, sells its DVDs in certain quan?ti?ties to Quik Shows, a retailer, for $275 but charges Right Stuff, a com?peti?tive re?tailer, $350. This is most likely a violation of

Correct AnswerverifiedShow Answer

Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies, Inc., only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products, even though there are other corn sellers from whom Nice Candies could buy. This is

Correct AnswerverifiedShow Answer

No person may be a director for two or more competing corporations at the same time.

Correct AnswerverifiedShow Answer

A market division by class of customer between rival firms is a viola?tion of antitrust law.

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

Correct Answer
verified
The elements of the offense of monopoliz...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified