Question 1

Restraints of trade are laws that regulate economic competition.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Two Chinese firms, Wong Ltd. and Xiang Ltd., engage in a conspiracy to control the distribution of certain goods in global markets. This may violate U.S. antitrust laws

Accepted Answer

A)  under no circumstances.
B)  if the conspiracy has a substantial effect on U.S. or foreign commerce.
C)  if the conspiracy has a substantial effect on U.S. and foreign commerce.
D)  if the conspiracy has a substantial effect on U.S. commerce only.E) B) and D)
F) All of the above

Question 4

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 5

The rule of reason represents a more flexible economic analysis of agreements among competitors than the rigid application of a per se standard.

Accepted Answer

A) True 
 B)False

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) All of the above
F) C) and D)

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

Question 8

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

Question 9

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

Question 10

Fixing prices, controlling production, and establishing exclusive geographic markets can reduce or eliminate economic competition.

Accepted Answer

A) True 
 B)False

Question 11

Only the Federal Trade Commission can enforce the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 12

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

Exam 43: Antitrust Law

Restraints of trade are laws that regulate economic competition.

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

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

Correct Answer
verified

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 Answer
verified

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 Answer
verified

The rule of reason represents a more flexible economic analysis of agreements among competitors than the rigid application of a per se standard.

Correct Answer
verified

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 Answer
verified

Two Chinese firms, Wong Ltd. and Xiang Ltd., engage in a conspiracy to control the distribution of certain goods in global markets. This may violate U.S. antitrust laws

Correct Answer
verified

Fixing prices, controlling production, and establishing exclusive geographic markets can reduce or eliminate economic competition.

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

Only the Federal Trade Commission can enforce the Clayton Act.

Correct Answer
verified

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 Answer
verified

Exam 43: Antitrust Law

Restraints of trade are laws that regulate economic competition.

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

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

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

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

The rule of reason represents a more flexible economic analysis of agreements among competitors than the rigid application of a per se standard.

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

Two Chinese firms, Wong Ltd. and Xiang Ltd., engage in a conspiracy to control the distribution of certain goods in global markets. This may violate U.S. antitrust laws

Correct AnswerverifiedShow Answer

Fixing prices, controlling production, and establishing exclusive geographic markets can reduce or eliminate economic competition.

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

Only the Federal Trade Commission can enforce the Clayton Act.

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

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