Question 1

Consumers benefit when producers work to develop better products that can be sold at lower prices to beat the competition.

Accepted Answer

A) True 
 B)False

Question 2

Section 2 of the Sherman Act essentially condemns the act of monopolizing,not the possession of monopoly power.

Accepted Answer

A) True 
 B)False

Question 3

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 unilateral refusal to deal.E) A) and C)
F) C) and D)

Question 4

Any contract,combination in the form of a trust,or conspiracy to restrain trade and commerce can be declared illegal under the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 5

Antirust legislation is based on society's desire to

Accepted Answer

A)   increase prices.
B)   foster competition.
C)   consolidate market power.
D)   encourage restraints of trade.E) B) and C)
F) A) and D)

Question 6

Every agreement concerned with trade,and every regulation of trade,restrains.The test of legality under the antitrust laws,according to the rule of reason,is whether the restraint

Accepted Answer

A)   is blatantly,inherently anticompetitive.
B)   has a substantial effect on interstate commerce.
C)   merely regulates and thereby promotes competition.
D)   suppresses or destroys competition.E) C) and D)
F) A) and B)

Question 7

Blu-ray producers cannot jointly lobby Congress to change the copyright laws without being held liable for attempting to restrain trade.

Accepted Answer

A) True 
 B)False  False

Question 8

Because market power arises from access to consumer data,collecting such information is an antitrust violation.

Accepted Answer

A) True 
 B)False

Question 9

Predatory pricing is not an antitrust violation because the tactic can eliminate a firm's competitors,enabling it to increase prices and earn higher profits to benefit its owners and employees.

Accepted Answer

A) True 
 B)False

Question 10

Under a contract,Oil Shale Corporation forbids Petro Inc. ,a wholesale buyer of Oil Shale's products,to purchase products from the seller's competitors.This is prohibited

Accepted Answer

A)   under any circumstances.
B)   if its effect is to stabilize the relevant market.
C)   if its effect is to substantially lessen competition.
D)   if its purpose is to create a monopoly.E) A) and D)
F) All of the above

Question 11

Bio Med Corporation makes and sells Curative,the most prescribed name-brand pain-relief medication.Drugs Inc.has the potential to make a generic version of the same drug.Bio Med agrees to pay Drugs not to make or sell the generic.This agreement is most likely

Accepted Answer

A)   a deal that neither restrains trade or harms competition.
B)   not within the scope of the Sherman Act.
C)   a per se violation of the Sherman Act.
D)   subject to analysis under the rule of reason.E) A) and B)
F) C) and D)

Question 12

Say It Inc.and Text Talk Inc.are social media companies.They compete for employees,users,and advertisers.The two firms work together on security threats,however.With respect to antitrust law,this cooperation is most likely

Accepted Answer

A)   a violation because it is not possible to completely thwart such fraud.
B)   a violation because it concerns sharing confidential information.
C)   a violation because it involves setting aside competitive differences.
D)   not a violation because it is not anticompetitive.E) B) and C)
F) A) and D)

Question 13

American Oil Company joins a cartel that includes foreign participants to set the price of oil.The cartel has a substantial effect on U.S.commerce.With respect to the foreign participants,under U.S.antitrust laws,this is most likely

Accepted Answer

A)   a per se violation.
B)   a violation,depending on the price.
C)   a violation,depending on the effect in foreign markets.
D)   not a violation.E) A) and B)
F) None of the above A

Question 14

Only the U.S.Department of Justice can prosecute violations of the Sherman Act.

Accepted Answer

A) True 
 B)False  True

Question 15

Because a single seller is free to deal with whomever it wishes,the seller's unilateral refusal to deal cannot violate Section 2 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Question 16

Any agreement that results in enhanced market power violates the antitrust laws.

Accepted Answer

A) True 
 B)False

Question 17

Mountain Crest Inc.makes and distributes its branded products to authorized dealers.To prevent price-cutting by dealers in direct competition,the firm imposes limits on where each dealer can sell the products.This is

Accepted Answer

A)   a territorial restriction.
B)   a trade association.
C)   smart marketing.
D)   a price-fixing agreement.E) B) and C)
F) A) and B)

Question 18

Establishing the relevant product market is a key issue in monopolization cases because the way a market is defined can determine whether a firm has monopoly power.

Accepted Answer

A) True 
 B)False

Question 19

Expressly exempt from antitrust laws because it is not interstate commerce,according to the United Supreme Court,is

Accepted Answer

A)   digital streaming.
B)   video production.
C)   professional football.
D)   professional baseball.E) B) and D)
F) B) and C)

Question 20

Any agreement among competitors to artificially fix prices or restrict output is a per se violation of Section 1 of the Sherman Act.

Accepted Answer

A) True 
 B)False

Exam 24: Antitrust Law and Promoting Competition

Consumers benefit when producers work to develop better products that can be sold at lower prices to beat the competition.

Correct AnswerverifiedShow Answer

Section 2 of the Sherman Act essentially condemns the act of monopolizing,not the possession of monopoly power.

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

Any contract,combination in the form of a trust,or conspiracy to restrain trade and commerce can be declared illegal under the antitrust laws.

Correct AnswerverifiedShow Answer

Antirust legislation is based on society's desire to

Correct AnswerverifiedShow Answer

Every agreement concerned with trade,and every regulation of trade,restrains.The test of legality under the antitrust laws,according to the rule of reason,is whether the restraint

Correct AnswerverifiedShow Answer

Blu-ray producers cannot jointly lobby Congress to change the copyright laws without being held liable for attempting to restrain trade.

Correct AnswerverifiedFalse

Because market power arises from access to consumer data,collecting such information is an antitrust violation.

Correct AnswerverifiedShow Answer

Predatory pricing is not an antitrust violation because the tactic can eliminate a firm's competitors,enabling it to increase prices and earn higher profits to benefit its owners and employees.

Correct AnswerverifiedShow Answer

Under a contract,Oil Shale Corporation forbids Petro Inc. ,a wholesale buyer of Oil Shale's products,to purchase products from the seller's competitors.This is prohibited

Correct AnswerverifiedShow Answer

Bio Med Corporation makes and sells Curative,the most prescribed name-brand pain-relief medication.Drugs Inc.has the potential to make a generic version of the same drug.Bio Med agrees to pay Drugs not to make or sell the generic.This agreement is most likely

Correct AnswerverifiedShow Answer

Say It Inc.and Text Talk Inc.are social media companies.They compete for employees,users,and advertisers.The two firms work together on security threats,however.With respect to antitrust law,this cooperation is most likely

Correct AnswerverifiedShow Answer

American Oil Company joins a cartel that includes foreign participants to set the price of oil.The cartel has a substantial effect on U.S.commerce.With respect to the foreign participants,under U.S.antitrust laws,this is most likely

Correct AnswerverifiedA

Only the U.S.Department of Justice can prosecute violations of the Sherman Act.

Correct AnswerverifiedTrue

Because a single seller is free to deal with whomever it wishes,the seller's unilateral refusal to deal cannot violate Section 2 of the Sherman Act.

Correct AnswerverifiedShow Answer

Any agreement that results in enhanced market power violates the antitrust laws.

Correct AnswerverifiedShow Answer

Mountain Crest Inc.makes and distributes its branded products to authorized dealers.To prevent price-cutting by dealers in direct competition,the firm imposes limits on where each dealer can sell the products.This is

Correct AnswerverifiedShow Answer

Establishing the relevant product market is a key issue in monopolization cases because the way a market is defined can determine whether a firm has monopoly power.

Correct AnswerverifiedShow Answer

Expressly exempt from antitrust laws because it is not interstate commerce,according to the United Supreme Court,is

Correct AnswerverifiedShow Answer

Any agreement among competitors to artificially fix prices or restrict output is a per se violation of Section 1 of the Sherman Act.

Correct AnswerverifiedShow Answer

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False

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A

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True

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