Question 1

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) C) and D)
F) A) and B)

Question 2

Under the Clayton Act, a seller can condition the sale of a product on the buyer's promise not to deal in the goods of the seller's competitors.

Accepted Answer

A) True 
 B)False

Question 3

A market in which there is a single seller or a very limited number of sellers is a monopoly.

Accepted Answer

A) True 
 B)False

Question 4

To deem an agreement a per se violation of antitrust law, a court must determine whether the agreement actually constitutes a restraint on trade.

Accepted Answer

A) True 
 B)False

Question 5

It is in society's interest to condemn every acquisition of monopoly power as an antitrust violation even though a dominant market share may be the result of business acumen.

Accepted Answer

A) True 
 B)False

Question 6

The legality of a tying arrangement depends in part on the agreement's likely effect on competition in the relevant markets.

Accepted Answer

A) True 
 B)False

Question 7

Best View Corporation offers to sell LED screens to Computer & Video, Inc., only if the buyer also agrees to buy the seller's servicing of its products. This is

Accepted Answer

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

Question 8

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 9

Under the Clayton Act, a business firm cannot merge with another unless the effect is to substantially lessen competition.

Accepted Answer

A) True 
 B)False

Question 10

If the legitimate benefits outweigh the anticompetitive effects of a resale price maintenance agreement, the agreement may be held lawful.

Accepted Answer

A) True 
 B)False

Question 11

With respect to anticompetitive behavior, the Federal Trade Commission Act prohibits

Accepted Answer

A)   civil violations of the Sherman Act.
B)   criminal violations of the Clayton Act.
C)   all forms not covered under other federal antitrust laws.
D)   only forms covered under other federal antitrust laws.E) A) and D)
F) A) and C)

Question 12

Fish Purveyors Corporation and Gill Netters Inc. are the principal suppliers of crustaceans in their market. They agree that Fish Purveyors will sell exclusively to retailers and Gill Netters will sell exclusively to wholesalers. This is most likely

Accepted Answer

A)   a situation that neither restrains trade nor harms competition.
B)   not within the scope of the Sherman Act.
C)   a per se violation of antitrust law.
D)   subject to analysis under the rule of reason.E) B) and C)
F) A) and B)

Exam 38: Antitrust Law and Promoting Competition

It is in society's interest to condemn every acquisition of monopoly power as an antitrust violation even though a dominant market share may be the result of business acumen.

Correct Answer
verified

A market in which there is a single seller or a very limited number of sellers is a monopoly.

Correct Answer
verified

Fish Purveyors Corporation and Gill Netters Inc. are the principal suppliers of crustaceans in their market. They agree that Fish Purveyors will sell exclusively to retailers and Gill Netters will sell exclusively to wholesalers. This is most likely

Correct Answer
verified

Antirust legislation is based on society's desire to

Correct Answer
verified

If the legitimate benefits outweigh the anticompetitive effects of a resale price maintenance agreement, the agreement may be held lawful.

Correct Answer
verified

Best View Corporation offers to sell LED screens to Computer & Video, Inc., only if the buyer also agrees to buy the seller's servicing of its products. This is

Correct Answer
verified

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 Answer
verified

Under the Clayton Act, a seller can condition the sale of a product on the buyer's promise not to deal in the goods of the seller's competitors.

Correct Answer
verified

Under the Clayton Act, a business firm cannot merge with another unless the effect is to substantially lessen competition.

Correct Answer
verified

With respect to anticompetitive behavior, the Federal Trade Commission Act prohibits

Correct Answer
verified

The legality of a tying arrangement depends in part on the agreement's likely effect on competition in the relevant markets.

Correct Answer
verified

To deem an agreement a per se violation of antitrust law, a court must determine whether the agreement actually constitutes a restraint on trade.

Correct Answer
verified

Exam 38: Antitrust Law and Promoting Competition

It is in society's interest to condemn every acquisition of monopoly power as an antitrust violation even though a dominant market share may be the result of business acumen.

Correct AnswerverifiedShow Answer

A market in which there is a single seller or a very limited number of sellers is a monopoly.

Correct AnswerverifiedShow Answer

Fish Purveyors Corporation and Gill Netters Inc. are the principal suppliers of crustaceans in their market. They agree that Fish Purveyors will sell exclusively to retailers and Gill Netters will sell exclusively to wholesalers. This is most likely

Correct AnswerverifiedShow Answer

Antirust legislation is based on society's desire to

Correct AnswerverifiedShow Answer

If the legitimate benefits outweigh the anticompetitive effects of a resale price maintenance agreement, the agreement may be held lawful.

Correct AnswerverifiedShow Answer

Best View Corporation offers to sell LED screens to Computer & Video, Inc., only if the buyer also agrees to buy the seller's servicing of its products. This is

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 the Clayton Act, a seller can condition the sale of a product on the buyer's promise not to deal in the goods of the seller's competitors.

Correct AnswerverifiedShow Answer

Under the Clayton Act, a business firm cannot merge with another unless the effect is to substantially lessen competition.

Correct AnswerverifiedShow Answer

With respect to anticompetitive behavior, the Federal Trade Commission Act prohibits

Correct AnswerverifiedShow Answer

The legality of a tying arrangement depends in part on the agreement's likely effect on competition in the relevant markets.

Correct AnswerverifiedShow Answer

To deem an agreement a per se violation of antitrust law, a court must determine whether the agreement actually constitutes a restraint on trade.

Correct AnswerverifiedShow Answer

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