Question 1

What effect can a government judgment have on an antitrust violation case?

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Question 2

How do courts determine the line of commerce that will be affected by a merger?

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Question 3

Favorable credit terms and freight charges are examples of indirect price discrimination that violate the Robinson-Patman Act.

Accepted Answer

Favorable credit terms and freight charges are examples of indirect price discrimination because they offer discounts to certain customers based on factors other than the cost of producing and distributing the product. This violates the Robinson-Patman Act, which prohibits price discrimination that substantially lessens competition or creates a monopoly.

Question 4

A publishing house is charging customers a lesser price for its products owing to an extensive warehouse network and reduced overhead costs.Would this constitute a violation of Section 2(a)of the Robinson-Patman Act?

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Question 5

Cost justification is not a statutory defense to price discrimination.

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Question 6

If two or more firms act the same but no concerted action is shown,can they be held for violation for Section 1 of the Sherman Act?

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Question 7

Agricultural cooperatives enjoy an implied exemption from antitrust laws.

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Question 8

State antitrust laws are used to attack anticompetitive activity that occurs in intrastate commerce.

Accepted Answer

State antitrust laws, also known as state competition laws, are enacted by individual states to regulate and prohibit anticompetitive practices and mergers within their own state's jurisdiction. These laws complement federal antitrust laws, which focus on activities that impact interstate commerce.

Question 9

Courts have permitted two or more small companies to merge without liability under Section 7 of the Clayton Act if the merger allows them to compete more effectively with a large company.

Accepted Answer

This is known as the "failing firm defense" and is an exception to antitrust laws in certain circumstances. If two small companies are struggling financially and would be forced to exit the market without the merger, and the merger would result in increased competition with a larger company, the courts may permit the merger without liability under Section 7 of the Clayton Act.

Question 10

What is the difference between horizontal and vertical price fixing?

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Question 11

With the help of examples,differentiate between statutory and implied exemptions from antitrust laws.

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Question 12

Under Section 3 of the Clayton Act,a tying arrangement is lawful if there is some justifiable reason for it.

Accepted Answer

Section 3 of the Clayton Act recognizes that tying arrangements may have some pro-competitive justifications, and therefore, it allows for them under certain circumstances. However, if the tying arrangement is found to be anticompetitive and cannot be justified, it would be considered illegal under Section 3.

Question 13

What elements of direct price discrimination must be shown in order to prove a violation of Section 2(a)of the Robinson-Patman Act?

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Question 14

Section 2 the Clayton Act does not apply to the sale of intangible property or services.

Accepted Answer

The Clayton Act explicitly states that it only applies to the sale of tangible goods, and does not extend to intangible property or services.

Question 15

Compare and contrast the two rules developed by the U.S.Supreme Court for determining the lawfulness of a restraint under Section 1 of the Sherman Act.

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Question 16

What are tying arrangements? Explain with the help of an example.

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Question 17

What is a vertical merger? With the help of an example,illustrate the difference between backward and forward vertical mergers.

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Question 18

The FTC is exclusively empowered to enforce the FTC Act.

Accepted Answer

The Federal Trade Commission (FTC) is exclusively empowered to enforce the FTC Act, which prohibits unfair or deceptive acts or practices in commerce. The FTC also has authority over certain other federal laws, such as the Children's Online Privacy Protection Act (COPPA) and the Fair Credit Reporting Act (FCRA).

Question 19

Resale price maintenance is a vertical trade restraint that involves the seller's refusal to sell a product to a customer unless the customer purchases a second product.

Accepted Answer

Resale price maintenance is a vertical trade restraint that involves the seller setting a minimum price at which a reseller can sell the product. It does not involve requiring the purchase of a second product.

Question 20

A plaintiff who has not suffered injury because of price discrimination cannot recover damages under Section 2 the Clayton Act.

Accepted Answer

This statement is true. Under Section 2 of the Clayton Act, a plaintiff must show that they have been injured or threatened with injury as a result of the defendant's conduct. If a plaintiff cannot prove that they have suffered antitrust injury, then they cannot recover damages under Section 2.

Quiz 33: Antitrust Law and Unfair Trade Practices