BUS320 Worksheet 24.3

Tying arrangement

An agreement where a buyer is required to buy additional products from the seller

Exclusive dealing contract

An agreement where the buyer will not buy from the seller's competitors

Foreign persons, including foreign governments, may sue under U.S. antitrust laws in U.S. courts.

True

Section 7 of the Clayton Act is the statutory authority for preventing mergers that could result in monopoly power.

True

Vertical merger

a situation where two firms at different stages in the production of a good join together

Select the four factors considered when analyzing a horizontal merger. a. Overall concentration of the relevant market b. Changing market concentration c. Ability to price discriminate d. Market history of concentration e. Tendency toward vertical integration f. If the merger is designed to reduce competition

a. Overall concentration of the relevant market b. Changing market concentration d. Market history of concentration f. If the merger is designed to reduce competition

Defense to price discrimination charges are ________________ justification, meeting __________ prices, and ________________ market conditions.

cost, competitors', changing

The critical consideration in most merger cases is _________________.

market concentration

Section 8 of the Clayton Act deals with

interlocking directorates

Any conspiracy in violation of Section 1 of the Sherman Act that has a _____________________ effect on U.S. commerce, no matter where in the world it occurs, is within the reach of the Sherman Act.

substantial

A private party wishing to sue under the Sherman Act must prove that the violation either caused or was a _________________ factor in causing the injury, and that the _______________ actions of the accused party affected business activities of the plaintiff that were ____________ by antitrust laws.

substantial, unlawful, protected

Section _______________ of the Clayton Act prohibits price discrimination.

2

Market concentration

A situation where one or a small number of firms share the market for a particular good or service

Horizontal merger

A situation where two firms that compete in the same market join together

What is not one of the ways in which price discrimination may occur? a. Better delivery terms b. Better customer service c. Rebates d. Discounts e. Offsets f. Lower freight charges g. Better credit terms

Better customer service

Price discrimination

Charging different prices to competing buyers without a just cause