Question 1

Market power is:

Accepted Answer

A)   represented by a relatively inelastic demand curve.
B)   defined by statute.
C)   the same as market share above 50 percent.
D)   all of the aboveE) All of the above
F) C) and D)

Question 2

The Joint Venture Trading Act of 1983:

Accepted Answer

A)   allows Justice Department approval for joint ventures of competitors in the international markets.
B)   prohibits joint ventures among competitors unless in the international market.
C)   prohibits joint ventures among competitors.
D)   none of the aboveE) All of the above
F) C) and D)

Question 3

Treble damages are recoverable for actions brought under:

Accepted Answer

A)   the Sherman Act.
B)   the FTC Act.
C)   the Antitrust Improvements Act.
D)   all of the aboveE) A) and C)
F) B) and D)

Question 4

The Clayton Act provides for treble damage recovery for all antitrust violations.

Accepted Answer

A) True 
 B)False

Question 5

Fair trade contracts:

Accepted Answer

A)   can no longer be allowed by the states.
B)   are contracts that prohibit exclusive distributorships.
C)   are permissible between manufacturers and retailers.
D)   none of the aboveE) A) and D)
F) B) and C)

Question 6

Together, Christie's and Sotheby's controlled about 75% of the international auction market.

Accepted Answer

A) True 
 B)False

Question 7

What is it called when officers of competing companies serve on each others' boards of directors?

Accepted Answer

A)   Intralocking directorates
B)   Interlocking directorates
C)   Cross-locking directorates
D)   Diagonal directoratesE) None of the above
F) A) and B)

Question 8

Cross-elasticity of demand is irrelevant in determining the product market.

Accepted Answer

A) True 
 B)False

Question 9

A monopsony is illegal per se.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is correct?

Accepted Answer

A)   The merger proposed is a vertical one.
B)   The merger proposed is a horizontal one.
C)   The merger is simply an asset acquisition.
D)   The merger is exempt under the failing company doctrine.E) None of the above
F) C) and D)

Question 11

Snow-Man manufactures a cotton candy machine. It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy. The cotton candy machine is:

Accepted Answer

A)   the tying product.
B)   the tied product.
C)   neither of the above - it is not a tying arrangement
D)   none of the aboveE) A) and B)
F) A) and C)

Question 12

A tying arrangement requires the seller to have market power in the tied product.

Accepted Answer

A) True 
 B)False

Question 13

A price cap imposed by a distributor on retail outlets is a violation of federal antitrust laws.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a per se violation of the antitrust laws?

Accepted Answer

A)   price fixing.
B)   group boycotts.
C)   predatory pricing.
D)   division of markets.
E)   All of the above are per se violations.F) A) and E)
G) A) and B)

Question 15

Georges Marciano Guess Company sells its clothes with tags on them with a price indicating "suggested retail price." Are there any antitrust violations with this practice?

Accepted Answer

No, unenfo...

Question 16

Section 1 of the Sherman Act covers monopolization.

Accepted Answer

A) True 
 B)False

Question 17

In the Christie's and Sotheby's case, the alleged violation was:

Accepted Answer

A)   tying.
B)   price discrimination.
C)   FTC Act violations.
D)   price fixing.
E)   none of the aboveF) C) and D)
G) A) and C)

Question 18

Gringo's Restaurant is a small restaurant located in a Mesa, Arizona, neighborhood shopping center that has a grocery store (chain)  as its anchor tenant. Carl Williams owns Gringo's and has just negotiated its sale to Wilma Freestone. The covenant not to compete provides that Williams will not open a competing restaurant anywhere within a two-mile radius of Gringo's for a period of two years. The noncompete covenant is:

Accepted Answer

A)   too restrictive and is a violation of the Sherman Act.
B)   not subject to review so long as it is part of the sales contract.
C)   probably reasonable and enforceable.
D)   voidE) A) and C)
F) A) and B)

Question 19

Homer, Inc. is the western regional distributor for Plato Ice Cream. Homer charges grocers in California $3.00 per half gallon but charges Utah grocers only $2.00 per half gallon. Homer says the Utah ice cream market is much more competitive and he has to meet the market. Utah competitors charge between $2.50 and $2.75 per half gallon. Homer:

Accepted Answer

A)   has engaged in price discrimination.
B)   is simply meeting the competition.
C)   is exempt from Robinson-Patman because of interstate sales.
D)   none of the aboveE) A) and B)
F) B) and C)

Exam 16: Business Competition: Antitrust

The Joint Venture Trading Act of 1983:

Correct Answer
verified

A tying arrangement requires the seller to have market power in the tied product.

Correct Answer
verified

Section 1 of the Sherman Act covers monopolization.

Correct Answer
verified

Cross-elasticity of demand is irrelevant in determining the product market.

Correct Answer
verified

Market power is:

Correct Answer
verified

Treble damages are recoverable for actions brought under:

Correct Answer
verified

Fair trade contracts:

Correct Answer
verified

A monopsony is illegal per se.

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Snow-Man manufactures a cotton candy machine. It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy. The cotton candy machine is:

Correct Answer
verified

Correct Answer
verified

The Clayton Act provides for treble damage recovery for all antitrust violations.

Correct Answer
verified

A price cap imposed by a distributor on retail outlets is a violation of federal antitrust laws.

Correct Answer
verified

In the Christie's and Sotheby's case, the alleged violation was:

Correct Answer
verified

Which of the following is not a per se violation of the antitrust laws?

Correct Answer
verified

What is it called when officers of competing companies serve on each others' boards of directors?

Correct Answer
verified

Together, Christie's and Sotheby's controlled about 75% of the international auction market.

Correct Answer
verified

Georges Marciano Guess Company sells its clothes with tags on them with a price indicating "suggested retail price." Are there any antitrust violations with this practice?

Correct Answer
verified
No, unenfo...
View Answer

Correct Answer
verified

Exam 16: Business Competition: Antitrust

The Joint Venture Trading Act of 1983:

Correct AnswerverifiedShow Answer

A tying arrangement requires the seller to have market power in the tied product.

Correct AnswerverifiedShow Answer

Section 1 of the Sherman Act covers monopolization.

Correct AnswerverifiedShow Answer

Cross-elasticity of demand is irrelevant in determining the product market.

Correct AnswerverifiedShow Answer

Market power is:

Correct AnswerverifiedShow Answer

Treble damages are recoverable for actions brought under:

Correct AnswerverifiedShow Answer

Fair trade contracts:

Correct AnswerverifiedShow Answer

A monopsony is illegal per se.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Snow-Man manufactures a cotton candy machine. It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy. The cotton candy machine is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Clayton Act provides for treble damage recovery for all antitrust violations.

Correct AnswerverifiedShow Answer

A price cap imposed by a distributor on retail outlets is a violation of federal antitrust laws.

Correct AnswerverifiedShow Answer

In the Christie's and Sotheby's case, the alleged violation was:

Correct AnswerverifiedShow Answer

Which of the following is not a per se violation of the antitrust laws?

Correct AnswerverifiedShow Answer

What is it called when officers of competing companies serve on each others' boards of directors?

Correct AnswerverifiedShow Answer

Together, Christie's and Sotheby's controlled about 75% of the international auction market.

Correct AnswerverifiedShow Answer

Georges Marciano Guess Company sells its clothes with tags on them with a price indicating "suggested retail price." Are there any antitrust violations with this practice?

Correct AnswerverifiedNo, unenfo...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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No, unenfo...
View Answer

Correct Answer
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