Quiz #31
not a violation
Earthgrown Flora, Inc., is one of many producers of cut flowers. Earthgrown refuses to sell its products to Florist Shops Corporation. Under antitrust law, this refusal is most likely
True
When a small number of companies share a large part of a market, the market is concentrated (T or F)
true
The purpose of antitrust legislation is to foster competition (T or F)
False
To drive its competitors out of a certain geographic segment of its market, Drone Drives, Inc., sets the prices of its products below cost for the buyers in that area. This is predatory pricing (T or F)
True
A price-fixing agreement is an example of a per se violation of Section 1 of the Sherman Act (T or F)
a tying arrangement
Clear View Corporation offers to sell its flat-panel display monitors to Best Computer & Video, Inc., only if Best agrees to buy Clear View's servicing of its products along with the monitors. This is
the relevant market
A suit is filed against Tamco Corporation, alleging that the firm committed the offense of monopolization. To determine whether Tamco has monopoly power requires looking at
False
Bodycare Corporation makes and sells ChemMed, the most prescribed name-brand blood pressure-lowering medication. Deja Vu Drugs, Inc., has the potential to make a generic version of the same drug. A court would most likely rule that the agreement between Bodycare and Deja Vu is subject to analysis under the rule of reason (T or F)
False
Bodycare Corporation makes and sells ChemMed, the most prescribed name-brand blood pressure-lowering medication. Deja Vu Drugs, Inc., has the potential to make a generic version of the same drug. Bodycare pays Deja Vu not to sell its product. This is an exclusive dealing contract (T or F)
if its effect is to substantially lessen competition
By contract, Oil Shale Corporation forbids Petro Refining, Inc., a wholesale buyer of Oil Shale's products, from purchasing the products of its competitors. This exclusive-dealing contract is not permitted
False
Monopoly power in and of itself constitutes the offense of monopolization (T or F)
False
Size alone determines whether a firm is a monopoly. (T or F)
