LAW LESSON 10 TEST

. As the member of an agency, a secretary A. signs orders and official correspondence. B. is the presiding officer at agency meetings. C. makes the decision to file suit or pursue other remedies. D. supervises usual administrative functions. E. provides for interaction between regulators and those being regulated.

A

. The use of ethical standards to avoid restrictions on price fixing is A. a violation of the Sherman Act. B. illegal per se under the Clayton Act. C. legal as long as relative-value scales are used. D. legal for services. E. only allowed for healthcare products

A

. Which of the following is true of administrative agencies? A. The actual regulatory activity is performed by administrative agencies. B. Administrative agencies that issue rules having impact of laws are called quasi-judicial agencies. C. State and local governments do not have administrative agencies. D. Administrative agencies with quasi-executive authority make decisions like a court. E. Administrative agencies license and regulate intrastate transportation.

A

. Which of the following statements is true of the judicial review of administrative agency's adjudications? A. Administrative agencies develop their own rules of procedure unless mandated otherwise by an act of the legislature. B. Courts and legislative bodies are better than administrative agencies to decide on the rules of procedure and methods of inquiry based on their familiarity with the industry. C. In reviewing the procedures of administrative agencies, courts have absolute authority to substitute their judgment or their own procedures for those of the agency. D. Procedures set by the administrative agencies are far more formal than judicial procedures. E. Administrative agencies are completely restricted by the strict rules of evidence used by courts.

A

A ______ is one between a manufacturer and a dealer, which assigns the dealer an exclusive territory, and the manufacturer agrees not to sell to other dealers in that territory in exchange for an agreement by the dealer that it will not operate outside the area assigned. A. vertical territorial agreement B. conglomerate territorial agreement C. congeneric territorial agreement D. tying territorial agreement E. per se territorial agreement

A

Administrative law judges are A. organizationally separate from the rest of the agency. B. responsible for the minutes of agency meetings and are legal custodians of its records. C. exempt from the protection of immunity. D. excluded from hearing cases of alleged law violations. E. intermediaries between regulators and those being regulated.

A

An individual found guilty under the Sherman Act may be fined up to ______. A. $1 million B. $5 million C. $100 million D. $50 million E. $30 million

A

In 1914, Congress, recognizing that the Sherman Act needed to be more specific, enacted the ______ as an amendment to the Sherman Act. A. Clayton Act B. Fair Credit Billing Act C. Securities Act D. Truth in Lending Act E. Robinson-Patman Act

A

In 1976, the Hart-Scott-Rodino Antitrust Improvements Act was passed to provide for ______. A. premerger notification B. reciprocal dealing C. merger extension rights D. post-merger bailout E. full-line forcing

A

In a(n) ______ type of regulatory authority, an agency can make decisions like a court. A. quasi-judicial B. quasi-executive C. in personam D. quasi-regulatory E. quasi in rem

A

Sifco Inc., a tire manufacturing company, stipulates that Rambox Corp. should buy its entire line of Roadgrip tires. Sifco has significant market power in a particular variety of Roadgrip tires for which no substitutes are available in the market. It uses this power to its advantage and does not agree to let Rambox buy less than the entire line of Roadgrip tires. The sales contract between Sifco and Rambox is an example of a ______. A. tying arrangement B. reciprocal dealing arrangement C. rescission contract D. premerger arrangement E. justification contract

A

The Department of Justice alone has the power to bring criminal proceedings, but it shares its civil enforcement powers with the ______. A. Federal Trade Commission B. Treasury Department C. Department of Revenue and Taxation D. U.S. Supreme Court E. Department of Labor

A

The University of Kay and Kaytech University are bitter cross-town rivals. They compete in everything from sports to academics. Due to decreasing enrollment, the schools make an agreement to give all incoming students free tuition for one semester before raising the existing rates the following semester. This action is most likely to be considered a A. horizontal agreement in violation of the Sherman Act. B. vertical agreement in violation of the Sherman Act. C. tying agreement in violation of the Clayton Act. D. reciprocal dealing agreement violating the Clayton Act. E. licensing agreement violating the Clayton Act.

A

The ______ function of an administrative agency involves both fact-finding and applying law to the facts. A. adjudicating B. advising C. rule-making D. investigating E. policy making

A

The ______ makes it a crime for a seller to sell at lower prices in one geographic area than elsewhere in the United States to eliminate competition or a competitor. A. Robinson-Patman amendment to the Clayton Act B. Federal Trade Commission Act C. Free Exercise Act D. Wheeler-Lea amendment to the Clayton Act E. Gramm-Rudman-Hollings Act

A

The ______ power of administrative agencies is primarily to investigate, prosecute, advise, and supervise. A. executive B. judicial C. legislative D. arbitrary E. preliminary

A

The primary function of the Federal Trade Commission is to A. prevent illegal business practices. B. award punitive damages for violations of the Sherman Act. C. award punitive damages for violations of the Clayton Act. D. prevent the formation of conglomerate mergers. E. facilitate the use of exclusive dealing contracts for trade agreements.

A

The protection administrative law judges receive from liability for damages based on their decisions is called ______. A. immunity B. specificity C. amnesty D. novation E. adjudication

A

To avoid the impact of a guilty plea or a conviction on a pending civil antitrust suit, a criminally accused defendant is most likely to plead ______. A. nolo contendere B. stare decisis C. voir dire D. res judicata E. obiter dicta

A

Vertical price fixing is also called ______. A. resale price maintenance B. predatory maintenance C. linear price fixing D. express price fixing E. gold fixing

A

When a state acts in its sovereign capacity, ______. A. it is immune from federal antitrust scrutiny B. it can legalize bribery C. it can force defendants to civil suits to enter a plea of nolo contendere D. it is liable for triple damages E. it has the right to forgive corporations for violations of the Clayton Act

A

Which of the following federal agencies conducts union certification elections and holds hearings on unfair labor practice complaints? A. the National Labor Relations Board (NLRB) B. the Equal Employment Opportunity Commission (EEOC) C. the Occupational Safety and Health Administration (OSHA) D. the Federal Reserve Board (FRB) E. the American Federation of Labor and Congress of Industrial Organizations

A

Which of the following federal agencies protects the public from anticompetitive behavior and unfair and deceptive business practices? A. the Federal Trade Commission (FTC) B. the Equal Employment Opportunity Commission (EEOC) C. the Consumer Product Safety Commission (CPSC) D. the National Labor Relations Board (NLRB) E. the Federal Reserve Board (FRB)

A

Which of the following is an exemption from the Sherman Act that extends to concerted efforts to lobby government officials? A. Noerr-Pennington doctrine B. quick look doctrine C. state action doctrine D. per se illegality doctrine E. doctrine of inherency

A

Which of the following statements is true of a secretary in an administrative agency? A. A secretary is responsible for the minutes of agency meetings and is legal custodian of its records. B. A secretary is designated as such at the time of nomination by the president. C. A secretary is the presiding officer at agency meetings. D. A secretary is not responsible for agency functions such as signing orders and official correspondence. E. A secretary is the chief operating official of an agency and supervises usual administrative functions such as accounting.

A

Which of the following statements is true of the Clayton Act? A. The original Clayton Act contained no sanction for forfeiture of property. B. The original Clayton Act did not allow individuals to obtain injunctive relief. C. The Clayton Act permits price fixing. D. The Clayton Act has prohibited a plaintiff's claim to triple damages. E. The Clayton Act allows companies to extend their monopoly power.

A

Which of the following statements is true of the executive director in an administrative agency? A. The executive director is the chief operating official of an agency and supervises usual administrative functions. B. The executive director is responsible for the minutes of agency meetings. C. The executive director is the legal custodian of the records of any meetings. D. The executive director is responsible for publication of all actions in the Federal Register. E. The executive director is the chief law officer and legal adviser.

A

Which of the following statements is true of the functionality of agencies providing services? A. Social Security programs necessitate that there be a federal agency to determine eligibility and pay benefits. B. The mere existence of most government programs hardly creates any new agency or expands the functions of an existing one. C. Welfare programs are run easily without being administered by the government. D. Government agencies often stand as a substitution for competition. E. Agencies that function to provide services are created out of sheer manpower rather than necessity.

A

Which of the following statements is true of the legislature in influencing decisions in an administrative agency? A. It has the power to limit appropriation of funds to the agency. B. It cannot abolish an administrative activity. C. It is beyond its scope to advise and amend procedural requirements for the agency's adjudications. D. It has very little control over the administrative process of an agency. E. It takes decisions independently, without any consultation with the executive branch.

A

. The Securities and Exchange Commission (SEC) primarily functions as a(n) ______ body, which oversees the issue and sale of investment securities. A. rule-making B. supervising C. adjudicating D. investigating E. emergency

B

. Which of the following statements is true of administrative law judges? A. They lack immunity for the damages arising from their decisions. B. They use prior decisions or precedent. C. They refrain from performing any fact-finding functions. D. They refrain from hearing cases of alleged law violations. E. They have the option of either following procedural rules of the agency or its policy directives.

B

Administrative agencies often provide needed continuity and consistency in the formulation, application, and enforcement of rules and regulations governing business. By doing so, these agencies are providing ______. A. specificity B. expertise C. protection D. regulation E. services

B

Attempts by manufacturers to control the ultimate retail prices are known as ______. A. transfer price fixing B. vertical price fixing C. lateral price fixing D. congestion price fixing E. rational price fixing

B

Business often fails to regulate itself, and the lack of self-regulation is contrary to the public interest. To counterbalance, administrative agencies exist to A. refer the problem or area to experts for solution and management. B. protect the public, especially from the business community. C. replace competition with regulation. D. develop detailed rules and regulations to carry out the legislative policy. E. provide services that have arisen out of necessity.

B

Fields Tech School decides to expand and open a new campus in another state. Rather than acquiring land and building new buildings, the school board decides to merge with an existing school, Fennelstate, which has similar programs in the other state. Fennelstate is a small commuter school with the majority of the students from the same state. The merger between Fields Tech School and Fennelstate is best described as a ______. A. vertical merger B. geographic extension merger C. product extension merger D. horizontal merger E. freeze-out merger

B

For a seller's pricing to be considered predatory conduct, there must be proof that A. the seller was selling the product at a price above the cost price. B. the prices were intended to drive competitors out of business followed by the wrongdoer recouping the initial losses. C. the prices were higher than those of all competitors within the same product group. D. the buyers were willing to buy a product at the seller's prices despite having a wide range of options. E. a buyer had other options in the same product line available in different price ranges.

B

Joshua owns orange groves. He enters into a contract with the local food processing plant, Gram Corp., which stipulates that he will sell oranges only to Gram. In this scenario, the contract between Joshua and Gram Corp. is known as a(n) ______. A. instalment contract B. exclusive dealing contract C. reciprocal dealing contract D. tying contract E. franchise contract

B

Mobi Telecom Inc. and Broadcom Inc. are manufactures of cell phones competing in the same markets. If Broadcom decides to acquire and merge with Mobi, the merger is most likely to be called a ______. A. vertical merger B. horizontal merger C. product extension merger D. geographic extension merger E. freeze-out merger

B

The Federal Reserve Board (FRB) found that Parson Inc., a newly established financial company, had violated banking laws. The company was involved in transactions that were prohibited by the United States government. Along with imposing a hefty fine, the FRB issued an order on Parson to stop the nature of such objectionable transactions and ordered the firm to refrain from indulging in such transactions in the future. This order is an example of a(n) ______. A. consent order B. cease and desist order C. preliminary order D. commission order E. assignment order

B

The ______ is the chief law officer and legal adviser. A. secretary B. general counsel C. chairperson D. executive director E. chief judge

B

The ______ power of administrative agencies is primarily to decide on controversies. A. executive B. judicial C. legislative D. arbitrary E. preliminary

B

The doctrine of ______ is a court-created rule that limits when courts can review administrative decisions. A. estoppel B. exhaustion of remedies C. lapse D. primary jurisdiction E. precedent

B

Which of the following is a unique agency device generally not available in the judicial system, as courts deal only with actual cases and controversies? A. limited cross examination B. advisory opinion C. formal ruling D. investigative power E. subpoena power

B

Which of the following is an order that an agency imposes on a violator to stop an objectionable activity and refrain the violator from any further violations? A. consent order B. cease and desist order C. preliminary order D. commission order E. assignment order

B

Which of the following statements is true of delegation of quasi-legislative authority to administrative agencies? A. The delegation of authority should be general and unlimited to ensure smooth running of the administrative processes. B. The delegation of authority to an agency must provide that the agency's power to act is limited to areas that are certain. C. The delegation of authority should contain broad language to avoid confusion in the performance of an action. D. The delegation of authority involves grant of substantial discretion to the judiciary. E. The delegation of authority allows courts to interfere with the discretion given to the agency and can substitute their judgment for that of the agency.

B

Which of the following statements is true of the antitrust enforcement in the European Union (EU)? A. Fines for violating EU antitrust law are much less than those in the United States. B. The EU may impose fines for business practices that do not violate U.S. law. C. The EU can impose a maximum fine of 1 billion euros. D. The European Commission does not have the power to change business practices related to activities that do not violate U.S. law. E. The decisions of the European Commission must mirror that of the U.S. Government. .

B

Which of the following statements is true of the executive branch of a government? A. It has no control over the administrative process of an agency. B. It normally appoints the top officials of an agency with the advice and consent of the legislative branch. C. It is denied veto power over the statues of the legislatures. D. It is excluded from making any budget recommendations to the legislative branch. E. It enacts and creates specific legislations adopted by administrative agencies.

B

Which of the following statements is true of the review of rule making? A. The rule-making function in the administrative process is essentially executive in character. B. Before a court can find a proposal void, an administrative agency must propose rules within the confines of its grant of power from the legislature. C. A court will inquire into its wisdom or effectiveness even after deciding that an act of the legislature or the action of an agency is authorized. D. Political action at polls is excluded from correcting an unwise or an ineffectual law. E. The scope of the legislature makes it impossible for it to correct an unwise regulation made by an agency in cases where the legislature was responsible for granting the agency such power.

B

. Which of the following federal agencies regulates the availability and cost of money and credit? A. the Federal Communications Commission (FCC) B. the Federal Trade Commission (FTC) C. the Federal Reserve Board (FRB) D. the Equal Employment Opportunity Commission (EEOC) E. the Federal Energy Regulatory Commission (FERC)

C

. Which of the following members of an agency requires Senate approval while being appointed? A. secretary B. advisory council C. general counsel D. chairperson E. executive director

C

2. In ______, the price of goods and services is limited to levels that tend to discourage new entry to markets. A. congestion pricing B. exemption pricing C. limit pricing D. per se pricing E. variable pricing

C

A corporation found guilty under the Sherman Act may be fined up to ______ for each offense. A. $10 million B. $1 million C. $100 million D. $500 million E. $300 million

C

Any party seeking the judicial review of any administrative agency's decision must be able to prove: A. enabling legislation. B. immunity. C. standing to sue. D. novation. E. primary jurisdiction.

C

For the purpose of giving each an exclusive territory, competing businesses may enter into a ______. A. bilateral territorial agreement B. vertical territorial agreement C. horizontal territorial agreement D. competitive territorial agreement E. congeneric territorial agreement

C

One party offers to buy the other's goods but only if the second party buys other goods from the first party. This is known as a(n) ______. A. franchise arrangement B. exclusive dealing arrangement C. reciprocal dealing arrangement D. tying arrangement E. requirements arrangement

C

Parker v. Brown doctrine is based on the reasoning that A. individuals cannot be fined for violations of the Sherman Act. B. concerted efforts to lobby government officials are not anticompetitive. C. the Sherman Act does not apply to state governments. D. not all independent actions by a manufacturer is a per se violation of the Sherman Act. E. only unreasonable attempts to monopolize a market were covered by the Sherman Act.

C

The Robinson-Patman amendment gives the Federal Trade Commission jurisdiction and authority to A. control production amounts. B. regulate the retail price of products. C. regulate quantity discounts. D. control market share. E. enforce trade bans.

C

The ______ function of an administrative agency may be accomplished by making reports to the president or to Congress. A. investigating B. adjudicating C. advisory D. rule-making E. prosecuting

C

The ______ has significant impact on policy and is often as powerful as a commissioner or board member. A. secretary B. advisory council C. general counsel D. chairperson E. executive director

C

The ______ that permits price differentials based on differences in the cost of manufacture, sale, or delivery of commodities is recognized by the Robinson-Patman amendment. A. good-faith meeting-of-competition defense B. mobile defense C. cost justification defense D. changing conditions defense E. position defense

C

The ______, announced by the Supreme Court in Standard Oil Co. v. United States, holds that contracts or conspiracies in restraint of trade are illegal only if they constituted undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize are covered by the Sherman Act. A. rule of per se illegality B. Parker v. Brown doctrine C. rule of reason D. duty-to-deal doctrine E. Ker-Frisbie doctrine

C

When administrative agencies exercise their quasi-legislative power by issuing guidelines that have the force and effect of law, they are ______. A. adjudicating B. advising C. rule making D. investigating E. policy making

C

Which of the following is a violation of the Sherman Act? A. market extension mergers between companies from different fields B. conglomerate mergers between small companies C. price fixing agreements between large companies D. gaining monopoly through the use of franchising agreements E. gaining monopoly due to the use of patent technology

C

Which of the following is true of the Environmental Protection Agency (EPA)? A. It protects the public against unreasonable risks of injury associated with consumer products. B. It ensures all workers a safe and healthy work environment. C. It administers all laws relating to water pollution, air pollution, solid wastes, pesticides, and toxic substances. D. It administers laws to prohibit distribution of adulterated, misbranded, or unsafe food and drugs. E. It regulates civil aviation to provide safe and efficient use of airspace.

C

Which of the following statements is true about the sanctions of the Sherman Act? A. Violations may be subject to criminal fines or imprisonment, but not both. B. Injured parties may collect a maximum of double damages. C. Violations of the Sherman Act may be enjoined by the courts. D. Its sanctions are only civil punishments and not criminal punishments. E. Crimes under the Sherman Act are misdemeanors.

C

Which of the following statements is true of concerted activities? A. They are illegal as they are never beneficial to the society. B. They are only legal if a firm has monopoly power. C. They reduce competition. D. They are only legal when firms have a vertical territorial agreement. E. They are performed by state governments to restrict monopolization.

C

Which of the following statements is true of factors influencing agency decisions? A. It is ideal that a rule or a regulation be adopted without having to follow the due process of law. B. Agencies are predominantly politically responsible for their decisions. C. At public hearings, interested parties are allowed to present evidence in support of, or in opposition to, a proposed rule or regulation. D. An ineffective means of influencing a quasi-legislative decision of an administrative agency is to participate in the adoption process as such participation is time-consuming and expensive. E. The advantage of the administrative agencies is that it is free from any control from any branch of the government.

C

Which of the following statements is true of organization of agencies? A. Administrative agencies or boards usually consist of 35 or 40 members to ensure transparency in their functioning. B. Appointees at the federal level are permitted to engage in any other business or employment during their terms. C. Appointees may be removed by the president for neglect of duty and inefficiency. D. A simple majority of the members forming the body should belong to a different political party. E. A secretary is vested with a power to remove an appointee for malfeasance in office.

C

Which of the following type of regulatory authority issues rules that have the impact of laws? A. in personam B. quasi-executive C. quasi-legislative D. quasi-regulatory E. quasi in rem

C

. ______ takes place when a seller sells at unreasonably low prices to drive out a competitor. A. Transfer pricing B. Translational pricing C. Congestion pricing D. Predatory pricing Psychological pricing

D

A ______ is one in which a product is sold or leased only on the condition that a buyer or lessee purchase a different product or service from a seller or lessor. A. executory contract B. exclusive dealing contract C. reciprocal dealing arrangement D. tying contract E. licensing agreement

D

A(n) ______ is designated as such at the time of nomination by the president and is the presiding officer at agency meetings. A. secretary B. advisory council C. general counsel D. chairperson E. executive director

D

A(n) ______ is one in which the businesses involved neither compete nor are related as customer and supplier in any given line of commerce. A. arbitration merger B. horizontal pricing arrangement C. vertical pricing arrangement D. conglomerate merger E. vertical merger

D

Administrative agencies are needed to provide specificity to A. refer a problem or area to experts for solution and management. B. protect the public, especially from the business community. C. replace competition with regulation. D. develop detailed rules and regulations to carry out a legislative policy. E. provide services that have risen out of necessity.

D

Bosh, an American corporation, acquires and merges with KnightD, a Belgian corporation, in a multibillion-dollar merger. Bosh, prior to the merger, sold beer only in the United States. After the merger, Bosh sells beer to most of the EU countries. The merger between Bosh and KnightD is an example of a ______. A. vertical merger B. horizontal merger C. freeze-out merger D. geographic extension merger E. product extension merger

D

Game designers Troy and Jeff have designed a new computer game system. This system is manufactured and sold by their company, GameTech Corp. The game system they devised uses new technology that they created and their system far exceeds the capabilities of any current gaming systems. This gives them a monopoly in the gaming market. Which of the following statements is true in this scenario? A. GameTech is guilty of engaging in predatory conduct. B. GameTech has monopoly power that violates the Sherman Act. C. GameTech has monopoly power that violates the Clayton Act but not the Sherman Act. D. GameTech has monopoly power that does not violate the Sherman Act. E. GameTech is guilty of monopoly that violates both the Clayton and Sherman Act.

D

The ______, a measure of market concentration, squares the market share of each firm in a market and adds them together for a final number. A. Noerr-Pennington Index B. Producer Price Index C. Consumer Price Index D. Herfindahl-Hirschman Index E. Big Mac Index

D

When a firm is given monopoly power, it loses its freedom of contract, and a governmental body is given the power to determine the provisions of its contracts. The government agency is providing ______. A. specificity B. expertise C. protection D. regulation E. services

D

Which of the following doctrines applies when a claim is originally filed in the courts? A. estoppel B. the doctrine of exhaustion of remedies C. the doctrine of lapse D. primary jurisdiction E. the doctrine of precedent

D

Which of the following functions allows an agency to gather and compile information concerning the organization and business practices of any corporation or industry engaged in commerce to determine whether there has been a violation of any law? A. adjudicating B. advising C. rule making D. investigating E. policy making

D

Which of the following statements is true of reviewability of an administrative agency's decision? A. Reviewability of an administrative agency's decision is mandatory as all such decisions are reviewable. B. The action of the agency is irrelevant in determining the reviewability of an administrative agency's decision. C. The Federal Administrative Procedure Act excludes judicial review of decisions where the statutes preclude judicial review. D. The Federal Administrative Procedure Act permits reviewability except in cases where agency action is committed to agency discretion by law. E. Reviewability of an administrative agency's decision is necessary as preclusion of judicial review by inference is very common.

D

Which of the following statements is true of the Sherman Act? A. The Sherman Act applies only to the sale of goods. B. Price fixing in the service sector is permitted under the Sherman Act. C. Maximum-price agreements are illegal, while minimum-price agreements are not illegal. D. The Sherman Act covers services, including those performed by learned professions. E. An action is not considered to be price fixing if the prices fixed are fair or reasonable.

D

Which of the following statements is true of the good-faith meeting-of-competition defense as permitted by the Robinson-Patman amendment? A. It applies to a situation when sellers select their own customers in good faith and not in restraint of trade. B. It applies to a situation when there are price differentials based on differences in the cost of manufacture, sale, or delivery of commodities. C. It applies to a situation that involves the setting up of barriers to market entry around a product, brand, product line, market, or market segment. D. It applies to a situation when a seller in good faith meets the equally low price of a competitor. E. It applies to a situation when price changes are made in response to changing conditions such as sales in good faith in discontinuance of business in the goods concerned.

D

Which of the following statements is true of the role of state governments in enforcement of antitrust laws? A. State governments have made all forms of monopolies illegal to create a fair trade environment. B. State governments have prohibited private parties from bringing civil suits seeking injunction as a means of enforcing antitrust laws. C. A state high court may allow a company to fix its price as long as the price is low. D. A state attorney general may bring civil suits for damages under the Sherman Act. E. State legislators have banned the use of trust agreements.

D

. Trusts are a legal arrangement in which a fiduciary A. forfeits his or her title to property. B. benefits from the profits of a company. C. acts as a bailor to another. D. provides financial support to another. E. holds legal title to property for benefit of another

E

If there are four firms in a market, each with a 25 percent share, the final Herfindahl-Hirschman Index is ______. A. 4000 points B. 2000 points C. 25 points D. 4 points E. 2500 points

E

In ______, a form of tying arrangement, a seller compels a buyer or lessee to take a complete product range from the seller. A. reciprocal agreement B. med-arb forcing C. rescission contract D. restitution agreement E. full-line forcing

E

In a 1943 case known as Parker v. Brown, the Supreme Court created a ______ to the Sherman Act. A. limited liability exemption B. double tax exemption C. general action exemption D. merger monopoly exemption E. state action exemption

E

In a(n) ______, a buyer agrees to purchase all of its needs of a given contract from a seller during a certain period of time. A. franchise contract B. installment contract C. reciprocal dealing contract D. tying contract E. requirements contract

E

The ______ attempted to eliminate the advantage that a large buyer could secure over a small buyer solely because of the larger buyer's quantity-purchasing ability. A. monopoly leveraging B. buy and sell amendment C. Wheeler-Lea amendment D. Parker v. Brown doctrine E. Robinson-Patman amendment

E

The ______ made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Act. A. Celler-Kefauver amendment B. Noerr-Pennington amendment C. Herfindahl-Hirschman amendment D. Robinson-Patman amendment E. Wheeler-Lea amendment

E

The mere existence of most government programs automatically creates a new agency or expands the functions of an existing one. These agencies are providing ______. A. specificity B. expertise C. protection D. regulation E. services

E

The president of a bottling company agreed with a competitor to stop discounts to retailers, which earned him a jail sentence. Which of the following is indicated in this scenario? A. variable pricing B. product bundling C. mixed-leader bundling D. predatory conduct E. horizontal price fixing

E

Under the Colgate doctrine, the Supreme Court recognizes that A. individuals are allowed to engage in horizontal price fixing. B. a franchisor can require that franchisees purchase all of its equipment and inventory. C. resale price maintenance is illegal. D. individuals are allowed to engage in horizontal price fixing for provision of services. E. manufacturers can announce their prices and refuse to deal with those who fail to comply.

E

When competitors attempt to share some activities or join together in the performance of a function, they are performing ______. A. derivative activities B. appellate activities C. preemptive activities D. arbitrated activities E. concerted activities

E

Which of the following is true about an advisory council? A. It is more important than other agency members because of visibility and the power to appoint staff. B. It coordinates the activities of an agency with others involved in the regulatory process. C. It makes the decision to file suit or pursue other remedies. D. It supervises usual administrative functions such as accounting, budgeting, and personnel. E. It provides for interaction between regulators and those being regulated.

E

Which of the following statements is true of a consent order? A. It is extremely expensive in comparison to other types of orders. B. It is commonly known as a commission order. C. It excludes organizations and nonprofit organizations in its scope. D. It orders that a violator stop the objectionable activity and refrain from any further similar violations. E. It requires that the accused individual admit to the jurisdiction of an agency and waive all rights to seek a judicial review.

E

Which of the following statements is true of monopoly power? A. Mere possession of monopoly power violates Section 1 of the Sherman Act. B. If monopoly power is thrust upon a firm, there is a violation Section 2 of the Sherman Act. C. Monopoly power which exists because of a patent or franchise violates the Clayton Act. D. If a firm engages in conduct that has the effect of extending its monopoly power, it does not violate the Sherman Act. E. Proof of monopoly power alone is insufficient to qualify as a violation of the Sherman Act.

E

Which of the following statements is true of the doctrine of exhaustion of remedies? A. It applies when a claim is originally filed in the courts. B. It comes into play whenever enforcement of a claim requires the resolution of issues that were placed within the special competence of an administrative body. C. It is an absolute principle, and courts usually deny parties the right to litigate prior to exhausting administrating remedies. D. It increases the premature interruption of the administrative process. E. It allows an agency to discover and correct its own errors, and thus it helps to dispense with any reason for judicial review.

E

Which of the following statements is true of the triple damages awarded to the injured parties under the Sherman Act? A. Triple damages apply only to individuals, and not corporations or larger institutions. B. The government cannot directly or indirectly receive triple damages. C. Triple damages are only meant to compensate a plaintiff for actual injury. D. Only injured members of the general public can enforce the law. E. Legislation allows both federal and state governments to file a suit for triple damages.

E