Question 1

City Manufacturing Corporation conditions shipments of its products to Exurb Stores,Inc.,on Exurb's agreement not to buy products from Regional Works Company,City's competitor.This is​

Accepted Answer

This is an exclusive-dealing contract because City Manufacturing Corporation is agreeing to only sell their products to Exurb Stores, Inc. if Exurb agrees to not buy products from City's competitor. This arrangement limits competition for City and gives them an advantage over their competitor.

Question 2

Big U.S.Oil Company joins with a foreign cartel to control the price of oil.If the cartel has a substantial effect on U.S.commerce​

Accepted Answer

Both Big U.S.Oil and the foreign cartel can be sued for violation of U.S. antitrust laws because they are engaging in anti-competitive actions that affect U.S. commerce. The Sherman Act, which is the main antitrust law in the U.S., prohibits agreements among competitors that restrain trade or fix prices. The collaboration between Big U.S.Oil and the foreign cartel to control the price of oil would likely fall under these prohibitions. Therefore, they could both be sued for any damages caused by their actions.

Question 3

Holiday Baskets,Inc.,refuses to buy products from GMO Farms.This can violate antitrust laws if the refusal​

Accepted Answer

Holiday Baskets, Inc.'s refusal to buy products from GMO Farms may violate antitrust laws if it has an anticompetitive effect on a particular market. This means that it could harm competition and result in higher prices or other negative effects for consumers. The other options are not relevant to antitrust laws or the potential for anticompetitive behavior.

Question 4

Farmed Crops Corporation offers to sell its wheat substitute to Gluten-Free,Inc.,only if Gluten-Free agrees to buy all of the wheat substitute that it needs from Farmed Crops,even though there are other sellers from whom Gluten-Free could buy.This is​

Accepted Answer

This is a tying arrangement, as Farmed Crops is requiring Gluten-Free to buy their wheat substitute in order to also buy other products from them, even though there are alternative sellers available.

Question 5

Mango Corporation believes that Melon Corporation engages in anticom-peti-tive behavior in an attempt to drive Mango and its other competitors out of the market.Antitrust laws can be enforced against Melon by​

Accepted Answer

Antitrust laws can be enforced by both the Federal Trade Commission and the U.S. Department of Justice, as well as by competitors who are harmed by anticompetitive behavior. Therefore, Mango and its competitors, along with both government agencies, can take action against Melon Corporation for engaging in anticompetitive behavior.

Question 6

To prevent its competitors from obtaining sufficient supplies to make their products,Continental Steel,Inc.,uses its market power to increase the prices of those supplies.This is​

Accepted Answer

The answer of To prevent its competitors from obtaining sufficient...

Question 7

Silicon Corporation,which controls 40 percent of the com-puter-chip mar-ket in the United States,merges with Micro Processors,Inc.,which controls 15 per-cent of the same market.This merger is a violation​

Accepted Answer

The merger violates antitrust laws if it results in increased market concentration and makes it more difficult for potential competitors to enter the market. Both conditions must be met for the merger to be considered a violation. Therefore, option C is the correct answer as it includes both conditions.

Question 8

To drive its competitors out of a certain geographic segment of its market,Superior Piping,Inc.,sets the prices of its products below cost for the buyers in that area.This is​

Accepted Answer

The answer of To drive its competitors out of a...

Question 9

Global Services Corporation engages in trade practices that may violate antitrust law.The Federal Trade Commission has the power to act against unfair trade practices under​

Accepted Answer

The Federal Trade Commission (FTC) has been given the power to act against unfair trade practices under the Federal Trade Commission Act. The Clayton Act and the Sherman Act are also antitrust laws but do not specifically assign enforcement powers to the FTC. Therefore, the most appropriate choice in this scenario is B.

Question 10

Precious Metals Corporation,a raw materials vendor,sells its commodities in certain quan-ti-ties to Quarry Refining Company for a certain price but charges Rich Assets,Inc.,a Quarry com-peti-tor,a higher price.This is most likely a violation of​

Accepted Answer

The answer of Precious Metals Corporation,a raw materials vendor,sells its...

Question 11

Java Bean Company imports coffee beans and sells them under two-year contracts to Mellow Roast,Inc.,and other coffeemakers.The contracts require that during the two-year term a coffeemaker not buy beans from Java Bean's competitors.The contracts do not limit the coffeemakers' purchase of tea or other beverage ingredients from other suppliers,how-ever.In the second year of the contract,Mellow Roast protests that this arrangement violates antitrust law.Is Mellow Roast correct? If not,why not? If so,under which antitrust statute,or statutes,could these con-tracts be held illegal?

Accepted Answer

The answer of Java Bean Company imports coffee beans and...

Question 12

Bubbly Bottling Company is engaged in the soft-drink bottling and distribution industry in the states of New York and New Jersey.The firm currently has about 40 percent of the market for these products and related services.Carbonate Distribution Corporation competes with Bubbly in the same states.Carbonate has about 35 percent of the market.If Bubbly were to acquire the stock and assets of Carbonate,would Bubbly be in violation of any of the antitrust laws? If so,which one? Discuss fully.

Accepted Answer

The answer of Bubbly Bottling Company is engaged in the...

Quiz 19: Antitrust Law and Promoting Competition

City Manufacturing Corporation conditions shipments of its products to Exurb Stores,Inc.,on Exurb's agreement not to buy products from Regional Works Company,City's competitor.This is​

Big U.S.Oil Company joins with a foreign cartel to control the price of oil.If the cartel has a substantial effect on U.S.commerce​

Holiday Baskets,Inc.,refuses to buy products from GMO Farms.This can violate antitrust laws if the refusal​

Farmed Crops Corporation offers to sell its wheat substitute to Gluten-Free,Inc.,only if Gluten-Free agrees to buy all of the wheat substitute that it needs from Farmed Crops,even though there are other sellers from whom Gluten-Free could buy.This is​

Mango Corporation believes that Melon Corporation engages in anticom-peti-tive behavior in an attempt to drive Mango and its other competitors out of the market.Antitrust laws can be enforced against Melon by​

To prevent its competitors from obtaining sufficient supplies to make their products,Continental Steel,Inc.,uses its market power to increase the prices of those supplies.This is​

Silicon Corporation,which controls 40 percent of the com-puter-chip mar-ket in the United States,merges with Micro Processors,Inc.,which controls 15 per-cent of the same market.This merger is a violation​

To drive its competitors out of a certain geographic segment of its market,Superior Piping,Inc.,sets the prices of its products below cost for the buyers in that area.This is​

Global Services Corporation engages in trade practices that may violate antitrust law.The Federal Trade Commission has the power to act against unfair trade practices under​

Precious Metals Corporation,a raw materials vendor,sells its commodities in certain quan-ti-ties to Quarry Refining Company for a certain price but charges Rich Assets,Inc.,a Quarry com-peti-tor,a higher price.This is most likely a violation of​

City Manufacturing Corporation conditions shipments of its products to Exurb Stores,Inc.,on Exurb's agreement not to buy products from Regional Works Company,City's competitor.This is

Big U.S.Oil Company joins with a foreign cartel to control the price of oil.If the cartel has a substantial effect on U.S.commerce

Holiday Baskets,Inc.,refuses to buy products from GMO Farms.This can violate antitrust laws if the refusal

Farmed Crops Corporation offers to sell its wheat substitute to Gluten-Free,Inc.,only if Gluten-Free agrees to buy all of the wheat substitute that it needs from Farmed Crops,even though there are other sellers from whom Gluten-Free could buy.This is

Mango Corporation believes that Melon Corporation engages in anticom-peti-tive behavior in an attempt to drive Mango and its other competitors out of the market.Antitrust laws can be enforced against Melon by

To prevent its competitors from obtaining sufficient supplies to make their products,Continental Steel,Inc.,uses its market power to increase the prices of those supplies.This is

Silicon Corporation,which controls 40 percent of the com-puter-chip mar-ket in the United States,merges with Micro Processors,Inc.,which controls 15 per-cent of the same market.This merger is a violation

To drive its competitors out of a certain geographic segment of its market,Superior Piping,Inc.,sets the prices of its products below cost for the buyers in that area.This is

Global Services Corporation engages in trade practices that may violate antitrust law.The Federal Trade Commission has the power to act against unfair trade practices under

Precious Metals Corporation,a raw materials vendor,sells its commodities in certain quan-ti-ties to Quarry Refining Company for a certain price but charges Rich Assets,Inc.,a Quarry com-peti-tor,a higher price.This is most likely a violation of