BLaw 2 - Ch. 46 Quiz
Section _____ of the _____ Act permits the government or a private plaintiff to obtain an injunction against anti-competitive behavior that violates antitrust laws.
16; Clayton
Section _____ of the _____ Act prohibits monopolization and attempts or conspiracies to monopolize trade.
2; Sherman
Which of the following is an INCORRECT statement regarding price fixing?
Horizontal price fixing occurs when competitors in different lines of business agree to set the price of goods or services they sell. Correct: - Most price fixing agreements occur between sellers. - Illegal price fixing includes setting maximum prices. - Illegal price fixing includes setting minimum prices. - Illegal price fixing includes fixing the quantity of a product or service to be produced or provided.
Which of the following is an INCORRECT statement regarding price fixing?
Price fixing agreements cannot occur between buyers. Correct: - If the three largest automobile manufacturers agreed among themselves what price they would pay to purchase tires from tire manufacturers, they would be engaging in buyers' illegal per se price fixing. - Price fixing is a per se violation of Section 1 of the Sherman Act. - If the three largest automobile manufacturers agreed among themselves what prices to charge automobile dealers for this year's vehicle, they would be engaging in sellers' illegal per se price fixing. - The plaintiff bears the burden of proving a price fixing agreement.
Which of the following is true about state antitrust laws?
State antitrust statutes are usually patterned after federal antitrust statutes.
Which of the following is a CORRECT statement regarding vertical restraints of trade?
The United States Supreme Court has applied both the per se rule and the rule of reason in determining the legality of vertical restraints of trade under Section 1 of the Sherman Act.
If Louis Vuitton, a maker of expensive women's clothing, shoes, handbags, and accessories, refuses to sell its merchandise to Wal-Mart stores, this is ________.
a lawful unilateral refusal to deal
If a drug manufacturer requires patients to purchase its blood-monitoring services along with its drug to treat schizophrenia, where the drug manufacturer was one of many providing blood-monitoring services, but the only manufacturer of the drug, this would be ________.
an illegal tying arrangement
A group _____ is also known as a refusal to deal.
boycott
Antitrust defendants often opt to settle government-brought antitrust actions through a _____ in a government civil action.
consent decree
Resale price maintenance is also known as vertical price _____.
fixing
The Sherman Act has been called the "Magna Carta of _____."
free enterprise
Which of the following is NOT an example of a defense to price discrimination?
if the price differential is due to lack of buyer bargaining power Examples: - if the price differential is due to changing conditions in the market - if the price differential is due to differences in the cost of delivery - if the price differential is due to the need to meet a competitor's price - if the price differential is due to differences in the cost of manufacture
Antitrust defendants often opt to settle government-brought antitrust actions by entering a plea of _____ in a criminal action.
nolo contendere
Market sharing is a _____ violation of Section 1 of the Sherman Act.
per se
The _____ rule is applicable to restraints of trade considered inherently anti-competitive.
per se
Three national breweries agree among themselves that each one will be assigned one-third of the country as a geographical "territory," and each agrees not to sell beer in the other two companies' territories. This arrangement is a _____.
per se illegal product division of markets
Which of the following is NOT a statutory exemption to federal antitrust laws?
privately owned companies Statutory exemptions: - agricultural cooperatives - export activities of American companies - state regulated insurance businesses - labor unions
The _____ standard holds that only unreasonable restraints of trade violate Section 1 of the Sherman Act.
rule of reason
Market _____ is a restraint of trade in which competitors agree that each will serve only a designated portion of the market.
sharing
The courts examine all EXCEPT which of the following factors in applying the rule of reason to a particular case?
the prevailing political climate in the United States Correct: - the pro- and anticompetitive effects of the challenged restraint - the competitive structure of the industry the history and duration of the restraint - the firm's market share and power
A(n) _____ restraint of trade occurs when two or more parties on different levels of distribution enter into a contract, combination, or conspiracy to restrain trade.
vertical
Section _____ of the _____ Act prohibits contracts, combinations, and conspiracies in restraint of trade.
1; Sherman
Section _____ of the _____ Act permits any person who suffers antitrust injury in his or her "business or property" to bring a private civil action against the offenders.
4; Clayton
Section _____ of the _____ Act prohibits unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce.
5; Federal Trade Commission
Section _____ of the _____ Act gave the _____ the power to prevent anticompetitive mergers.
7; Clayton; federal government
Proving that a defendant is in violation of Section 2 means proving that the defendant in the _____ market possesses _____ power and engaged in a _____ act of monopolization to acquire or maintain that power.
relevant; monopoly; willful
