Legal Environment Business
Which of the following is not an example of limited or special jurisdiction court?
Court of original jurisdiction.
The U.S. Courts of Appeals consists of ______federal judicial districts.
Thirteen (13)
A(n) _________occurs when the seller makes a buyer who wants to purchase one product buy an additional product that he or she does not want.
Tying arrangement
Unfair competition is controlled by:
all of these
State supreme courts primarily have ______ jurisdiction.
appellate
A violator of the Sherman Act may be subject to:
both fine and imprisonment
The types of civil cases that a private citizen can file in federal district courts include:
cases between citizens of different states that involve damages of $75,000 or more
When testifying at trial, the witness for the plaintiff will undergo _______ by the plaintiff's attorney, and a(n) _______ by defense counsel.
direct examination, cross-examination
A person who is harmed by a conspiracy that violates the Sherman Antitrust Act may sue the wrongdoers for treble damages, which is four times the actual damages.
false
Price discrimination is not permitted even when it can be justified on the basis of a difference in grade, quality, or quantity.
false
The Robinson-Patman Act guarantees a seller the right to refuse to deal with anyone for any reason or purpose.
false
The Sherman Act applies only to buying and selling activities, not manufacturing and production activities.
false
The defendant in a civil case is the party who is suing.
false
Price discrimination is expressly permitted in all of the following except:
in situations involving resale price maintenance
The _____ rule(s) on the admissibility of evidence.
judge
The power given to courts to hear certain types of cases is called:
jurisdiction
__________ power relates to a firm's ability to control price and exclude competitors.
market
When a defendant files a(n) _________ he is attacking the plaintiff's pleading as not stating a cause of action or defense.
motion to dismiss
When the effect of an antitrust violation is to raise prices:
the state attorney general may bring a class action suit for damages
The attorney general of a state may bring a class action suit to recover damages for those injured by an antitrust violation which raised prices.
true
The government can regulate not just businesses, but also business competition and prices.
true
Under the Clayton Act, a divestiture order is:
a decision by a court requiring a defendant to sell an enterprise
A summary jury trial is:
a mock trial
The Sherman Act does not prohibit:
a seller from dominating a market because of superior product or business
A deposition is or can accomplish any of the following except:
can be used to dismiss the lawsuit
Under the Sherman Act competitors are permitted to agree not to deal with certain buyers.
false
A probate court is an example of a general trial court.
false
All courts have general jurisdiction.
false
Depositions are usually taken in the courtroom for purposes of discovery.
false
To initiate a lawsuit, both parties must appear in person and state their claims and defenses in court.
false
Under the Sherman Act, any person who attempts to monopolize any part of the trade or commerce among the states shall be:
guilty of felony
Vertical mergers:
occur between firms that have buyer and seller relationships
The person who initiates a civil lawsuit is called the:
plantiff
The Robinson-Patman Act:
prohibits charging different prices to buyers when the margin cost are the same
The United States Supreme Court was created by:
the U.S. Constitution
A court is a tribunal established by:
the government
A person or enterprise harmed by a Sherman Act violation may bring an action for:
treble damages
Original jurisdiction courts are generally ____________.
trial courts
A divestiture order is a decree ordering a defendant to dispose of excessive ownership or control of interests in competing enterprises.
true
A price reduction to one customer is lawful when it is made because of the deteriorated condition of the goods sold to that customer.
true
A state may prohibit a seller from selling below cost if the purpose is to harm competitors.
true
Criminal penalties are possible under the Sherman Act.
true
Each of the states and the federal government have statutes and regulations that prohibit unfair methods of competition.
true
Market power under the Sherman Act is defined by both geographic and product markets.
true
The Clayton Act prohibits price discrimination between different buyers of like commodities when the effect may be to substantially lessen competition.
true
The Federal Trade Commission administers the law prohibiting unfair methods of competition.
true
An appellate court determines whether there has been reversible error.
true
Documents filed by both parties at the beginning of a lawsuit are called the pleadings.
true
Federal district courts are the trial courts of the federal court system.
true
Generally, the prevailing party in a lawsuit is awarded the costs of the action, including witness fees and jury fees.
true
The authority of a court to decide certain types of cases is called jurisdiction.
true
The federal court system consists of three levels.
true
For violation of the Sherman Act, the maximum fine that may be imposed on a natural person is:
$1 million
Section __________ of the Sherman Act applies to agreements, conduct, or conspiracies to restrain trade, which can consist of price-fixing, typing, and monopolization.
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