Question 1

With respect to antitrust violations, the Federal Trade Commission does not enforce

Accepted Answer

The Federal Trade Commission (FTC) enforces the Federal Trade Commission Act and the Clayton Act, but not the Sherman Act, which is primarily enforced by the Department of Justice.

Question 2

Ranch Supplies Company believes that its chief competitor Stock & Equipment Inc. engages in anticompetitive behavior in an attempt to drive Ranch Supplies out of the market. Under the Clayton Act, Ranch Supplies can sue Stock & Equipment for a violation of

Accepted Answer

Under the Clayton Act, a company can sue for violations of any of the federal antitrust laws, not just the Clayton Act itself. This includes the Sherman Act, which is another key piece of antitrust legislation in the United States.

Question 3

Linking Cogs Corporation and Meshed Gears Inc. are competitors selling certain machine parts that are otherwise generally unattainable in their geographic market. This market includes the states of Minnesota, North Dakota, and South Dakota. Linking Cogs and Meshed Gears agree that Linking Cogs will no longer sell in Minnesota and that Meshed Gears will no longer sell in North and South Dakota. Have Linking Cogs and Meshed Gears violated any antitrust law? If so, which one? Explain. If they had divided their market by type of customer rather than geographic are, would the result be the same? Why or why not?

Accepted Answer

The answer of Linking Cogs Corporation and Meshed Gears Inc....

Question 4

Baby Goods Inc. buys Child Shops Inc. in an attempt to gain monopoly power. Remedies that a court might impose in a suit against Baby Goods for a violation of the antitrust laws include

Accepted Answer

A court might require Baby Goods Inc. to divest itself of Child Shops to restore competition and prevent monopoly power, which is a common remedy in antitrust cases.

Question 5

American Oil Company joins a cartel that includes foreign participants to set the price of oil. The cartel has a substantial effect on U.S. commerce. With respect to the foreign participants, under U.S. antitrust laws, this is most likely

Accepted Answer

Joining a cartel to set prices, especially when it has a substantial effect on U.S. commerce, is considered a per se violation of U.S. antitrust laws, regardless of the nationality of the participants.

Question 6

With respect to anticompetitive behavior, the Federal Trade Commission Act prohibits

Accepted Answer

The Federal Trade Commission Act prohibits all forms of anticompetitive behavior not specifically covered under other federal antitrust laws, thereby filling gaps left by statutes like the Sherman and Clayton Acts.

Question 7

Say It Inc. and Text Talk Inc. are social media companies. They compete for employees, users, and advertisers. The two firms work together on security threats, however. With respect to antitrust law, this cooperation is most likely

Accepted Answer

Cooperation between competitors on security threats is generally not considered anticompetitive under antitrust law. Such collaboration can enhance the security and reliability of their services, benefiting consumers without necessarily reducing competition in terms of pricing, product quality, or innovation.

Question 8

Oil Industries Inc. and Petro Corporation are competing refineries situated on the Gulf coast. The two firms cooperate to obtain federal funds to build a levee that could protect their facilities from rising sea levels. With respect to antitrust law, this effort is

Accepted Answer

Collaborating to secure federal funds for a levee to protect against rising sea levels is a matter of mutual interest that does not directly relate to competitive practices in the market. This type of cooperation is generally seen as outside the scope of antitrust enforcement, which focuses on preventing anti-competitive behavior that affects market dynamics, not on joint efforts for infrastructure protection.

Question 9

The federal agencies that enforce the antitrust laws include

Accepted Answer

The U.S. Department of Justice (DOJ) is one of the primary federal agencies responsible for enforcing antitrust laws, alongside the Federal Trade Commission (FTC), which is not listed among the options. The Securities and Exchange Commission (SEC) and the Consumer Financial Protection Bureau (CFPB) focus on other areas of regulation and enforcement, not antitrust.

Question 10

Under what circumstances would Quality Market, a small store in Rustic, an isolated town, be considered a monopoly? If Quality Market is a monopoly, is it in violation of antitrust law?

Accepted Answer

The answer of Under what circumstances would Quality Market, a...

Question 11

Expressly exempt from antitrust laws because it is not interstate commerce, according to the United Supreme Court, is

Accepted Answer

Professional baseball is expressly exempt from antitrust laws because it is not considered interstate commerce, according to the United States Supreme Court. This exemption, established in the early 20th century, has not been extended to other professional sports.

Question 12

Two Chinese firms, Wong Ltd. and Xiang Ltd., engage in a conspiracy to control the distribution of certain goods in global markets. This may violate U.S. antitrust laws

Accepted Answer

The answer of Two Chinese firms, Wong Ltd. and Xiang...

Quiz 43: Antitrust Law