Question 1

An inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior is known as which of the following?

Accepted Answer

A)The rule-of-reason analysis is an inquiry into the competitive effects of a
company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior.
B)The rule-of-reason analysis is an inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior.
C)The rule-of-reason analysis is an inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior.
D)The rule-of-reason analysis is an inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior.
E)The rule-of-reason analysis is an inquiry into the competitive effects of a company's behavior to determine whether the benefits of the behavior outweigh the harm of the anticompetitive behavior.

Question 2

Which of the following is not an example of a horizontal restraint of trade?

Accepted Answer

A)Types of agreements classified as horizontal restraints of trade are price fixing,
horizontal division of markets,group boycotts,trade associations,and joint ventures.
B)Types of agreements classified as horizontal restraints of trade are price fixing,horizontal division of markets,group boycotts,trade associations,and joint ventures.
C)Types of agreements classified as horizontal restraints of trade are price fixing,horizontal division of markets,group boycotts,trade associations,and joint ventures.
D)Types of agreements classified as horizontal restraints of trade are price fixing,horizontal division of markets,group boycotts,trade associations,and joint ventures.
E)Types of agreements classified as horizontal restraints of trade are price fixing,horizontal division of markets,group boycotts,trade associations,and joint ventures.

Question 3

The task of identifying which specific behaviors were prohibited under the Sherman Act was left to which of the following?

Accepted Answer

A)Congress did not specify which specific behaviors were prohibited under the
Sherman Act.Instead,it left this task to the courts.
B)Congress did not specify which specific behaviors were prohibited under the Sherman Act.Instead,it left this task to the courts.
C)Congress did not specify which specific behaviors were prohibited under the Sherman Act.Instead,it left this task to the courts.
D)Congress did not specify which specific behaviors were prohibited under the Sherman Act.Instead,it left this task to the courts.
E)Congress did not specify which specific behaviors were prohibited under the Sherman Act.Instead,it left this task to the courts.

Question 4

Which of the following prohibits price discrimination by sellers?

Accepted Answer

A)Section 2 of the Clayton Act as amended by the Robinson-Patman Act)
prohibits price discrimination by sellers.
B)Section 2 of the Clayton Act as amended by the Robinson-Patman Act)prohibits price discrimination by sellers.
C)Section 2 of the Clayton Act as amended by the Robinson-Patman Act)prohibits price discrimination by sellers.
D)Section 2 of the Clayton Act as amended by the Robinson-Patman Act)prohibits price discrimination by sellers.
E)Section 2 of the Clayton Act as amended by the Robinson-Patman Act)prohibits price discrimination by sellers.

Question 5

When it is determined that business practices always hurt consumers,which of the following Section 1 violations of the Sherman Act has occurred?

Accepted Answer

A)Certain business practices always hurt consumers.These practices are called per
se violations.
B)Certain business practices always hurt consumers.These practices are called per se violations.
C)Certain business practices always hurt consumers.These practices are called per se violations.
D)Certain business practices always hurt consumers.These practices are called per se violations.
E)Certain business practices always hurt consumers.These practices are called per se violations.

Question 6

Which of the following standards allows a defendant to offer justification for a per se violation of Section 1 of the Sherman Act,in which case the court will engage in a rule-of-reason analysis?

Accepted Answer

A)The "quick-look" standard,permits the defendant to offer justification for his per
se violation.If the defendant can offer justification,the court then engages in rule-of-reason analysis.
B)The "quick-look" standard,permits the defendant to offer justification for his per se violation.If the defendant can offer justification,the court then engages in rule-of-reason analysis.
C)The "quick-look" standard,permits the defendant to offer justification for his per se violation.If the defendant can offer justification,the court then engages in rule-of-reason analysis.
D)The "quick-look" standard,permits the defendant to offer justification for his per se violation.If the defendant can offer justification,the court then engages in rule-of-reason analysis.
E)The "quick-look" standard,permits the defendant to offer justification for his per se violation.If the defendant can offer justification,the court then engages in rule-of-reason analysis.

Question 7

Which analysis,if any,is applied to territorial and customer restrictions imposed by a manufacturer on a retailer?

Accepted Answer

Both territorial and customer restrictions are generally analyzed under the rule-of-reason test, which evaluates the pro-competitive and anti-competitive effects of the restrictions.

Question 8

When was the Sherman Act enacted?

Accepted Answer

A)In 1890 a bill was enacted as the Sherman Act.
B)In 1890 a bill was enacted as the Sherman Act.
C)In 1890 a bill was enacted as the Sherman Act.
D)In 1890 a bill was enacted as the Sherman Act.
E)In 1890 a bill was enacted as the Sherman Act.

Question 9

Chicago School theorists argue that the central,and perhaps only,purpose of antitrust law is to encourage economic ________.

Accepted Answer

A)Chicago School theorists argue that the central,and perhaps only,purpose of
antitrust law is to encourage economic efficiency.
B)Chicago School theorists argue that the central,and perhaps only,purpose of antitrust law is to encourage economic efficiency.
C)Chicago School theorists argue that the central,and perhaps only,purpose of antitrust law is to encourage economic efficiency.
D)Chicago School theorists argue that the central,and perhaps only,purpose of antitrust law is to encourage economic efficiency.
E)Chicago School theorists argue that the central,and perhaps only,purpose of antitrust law is to encourage economic efficiency.

Question 10

When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing _ pricing.

Accepted Answer

A)When a company prices one product below normal cost until competitors are
eliminated and then sharply increases the price,the company is practicing predatory pricing.
B)When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing predatory pricing.
C)When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing predatory pricing.
D)When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing predatory pricing.
E)When a company prices one product below normal cost until competitors are eliminated and then sharply increases the price,the company is practicing predatory pricing.

Question 11

In the U.S.Supreme Court case Continental T.V.Inc. ,v.GTE Sylvania Inc. ,Continental argued that Sylvania violated the Sherman Act by restricting the location of retailers that could sell its product.Which of the following was the result?

Accepted Answer

A)The court ruled that when anticompetitive effects are shown to result from particular vertical restrictions they can be adequately policed under the rule of reason,the standard traditionally applied for the majority of anticompetitive practices challenged under 1 of the Act.Departure from the rule-of-reason standard must be based upon demonstrable economic effect.
B)The court ruled that when anticompetitive effects are shown to result from particular vertical restrictions they can be adequately policed under the rule of reason,the standard traditionally applied for the majority of anticompetitive practices challenged under 1 of the Act.Departure from the rule-of-reason standard must be based upon demonstrable economic effect.
C)The court ruled that when anticompetitive effects are shown to result from particular vertical restrictions they can be adequately policed under the rule of reason,the standard traditionally applied for the majority of anticompetitive practices challenged under 1 of the Act.Departure from the rule-of-reason standard must be based upon demonstrable economic effect.
D)The court ruled that when anticompetitive effects are shown to result from particular vertical restrictions they can be adequately policed under the rule of reason,the standard traditionally applied for the majority of anticompetitive practices challenged under 1 of the Act.Departure from the rule-of-reason standard must be based upon demonstrable economic effect.
E)The court ruled that when anticompetitive effects are shown to result from particular vertical restrictions they can be adequately policed under the rule of reason,the standard traditionally applied for the majority of anticompetitive practices challenged under 1 of the Act.Departure from the rule-of-reason standard must be based upon demonstrable economic effect.

Question 12

Congress passed the Sherman Act by what U.S.Constitutional authority?

Accepted Answer

A)Congress passed the Sherman Act through its authority to regulate interstate
commerce.
B)Congress passed the Sherman Act through its authority to regulate interstate commerce.
C)Congress passed the Sherman Act through its authority to regulate interstate commerce.
D)Congress passed the Sherman Act through its authority to regulate interstate commerce.
E)Congress passed the Sherman Act through its authority to regulate interstate commerce.

Question 13

When two parties at different levels in the manufacturing and distribution process make an agreement that restrains trade,they have made a restraint against trade.

Accepted Answer

A)When two parties at different levels in the manufacturing and distribution
process make an agreement that restrains trade,they have made a vertical restraint against trade.
B)When two parties at different levels in the manufacturing and distribution process make an agreement that restrains trade,they have made a vertical restraint against trade.
C)When two parties at different levels in the manufacturing and distribution process make an agreement that restrains trade,they have made a vertical restraint against trade.
D)When two parties at different levels in the manufacturing and distribution process make an agreement that restrains trade,they have made a vertical restraint against trade.
E)When two parties at different levels in the manufacturing and distribution process make an agreement that restrains trade,they have made a vertical restraint against trade.

Question 14

Which two markets does a court consider in identifying the relevant market for monopolization purposes?

Accepted Answer

A)The way the court defines the relevant market is immensely important in
determining whether a company is monopolizing.When the court identifies the relevant market,it considers two markets: product and geographic markets.
B)The way the court defines the relevant market is immensely important in determining whether a company is monopolizing.When the court identifies the relevant market,it considers two markets: product and geographic markets.
C)The way the court defines the relevant market is immensely important in determining whether a company is monopolizing.When the court identifies the relevant market,it considers two markets: product and geographic markets.
D)The way the court defines the relevant market is immensely important in determining whether a company is monopolizing.When the court identifies the relevant market,it considers two markets: product and geographic markets.
E)The way the court defines the relevant market is immensely important in determining whether a company is monopolizing.When the court identifies the relevant market,it considers two markets: product and geographic markets.

Question 15

Which of the following is false regarding enforcement of the Sherman Act?

Accepted Answer

A)The availability of treble damages serves as an incentive for private parties to bring suits;thus,treble damages also serve as an incentive for companies to ensure that they do not commit violations under the Sherman or Clayton Act.
B)The availability of treble damages serves as an incentive for private parties to bring suits;thus,treble damages also serve as an incentive for companies to ensure that they do not commit violations under the Sherman or Clayton Act.
C)The availability of treble damages serves as an incentive for private parties to bring suits;thus,treble damages also serve as an incentive for companies to ensure that they do not commit violations under the Sherman or Clayton Act.
D)The availability of treble damages serves as an incentive for private parties to bring suits;thus,treble damages also serve as an incentive for companies to ensure that they do not commit violations under the Sherman or Clayton Act.
E)The availability of treble damages serves as an incentive for private parties to bring suits;thus,treble damages also serve as an incentive for companies to ensure that they do not commit violations under the Sherman or Clayton Act.

Question 16

A seller engages in ________ when it sells the same goods to competing buyers for different prices.

Accepted Answer

A)A seller engages in price discrimination when it sells the same goods to
competing buyers for different prices.
B)A seller engages in price discrimination when it sells the same goods to competing buyers for different prices.
C)A seller engages in price discrimination when it sells the same goods to competing buyers for different prices.
D)A seller engages in price discrimination when it sells the same goods to competing buyers for different prices.
E)A seller engages in price discrimination when it sells the same goods to competing buyers for different prices.

Question 17

Which of the following practices are not covered under the Sherman Act,but are identified by the Clayton Act?

Accepted Answer

A)The Clayton Act identifies the following four business practices not covered under the Sherman Act:
1.Price discrimination Section 2 of the Clayton Act).
2.Exclusionary practices Section 3).
3.Mergers Section 7).
4.Interlocking directorates Section 8).
B)The Clayton Act identifies the following four business practices not covered under the Sherman Act:
1.Price discrimination Section 2 of the Clayton Act).
2.Exclusionary practices Section 3).
3.Mergers Section 7).
4.Interlocking directorates Section 8).
C)The Clayton Act identifies the following four business practices not covered under the Sherman Act:
1.Price discrimination Section 2 of the Clayton Act).
2.Exclusionary practices Section 3).
3.Mergers Section 7).
4.Interlocking directorates Section 8).
D)The Clayton Act identifies the following four business practices not covered under the Sherman Act:
1.Price discrimination Section 2 of the Clayton Act).
2.Exclusionary practices Section 3).
3.Mergers Section 7).
4.Interlocking directorates Section 8).
E)The Clayton Act identifies the following four business practices not covered under the Sherman Act:

Question 18

Which of the following is false regarding antitrust law in Japan?

Accepted Answer

A)Despite the implementation of antitrust laws,new conglomerate businesses
called keiretsu have sprung up in Japan.The keiretsu resembles an oligopoly,an enterprise that dominates a market with few competitors.
B)Despite the implementation of antitrust laws,new conglomerate businesses called keiretsu have sprung up in Japan.The keiretsu resembles an oligopoly,an enterprise that dominates a market with few competitors.
C)Despite the implementation of antitrust laws,new conglomerate businesses called keiretsu have sprung up in Japan.The keiretsu resembles an oligopoly,an enterprise that dominates a market with few competitors.
D)Despite the implementation of antitrust laws,new conglomerate businesses called keiretsu have sprung up in Japan.The keiretsu resembles an oligopoly,an enterprise that dominates a market with few competitors.
E)Despite the implementation of antitrust laws,new conglomerate businesses called keiretsu have sprung up in Japan.The keiretsu resembles an oligopoly,an enterprise that dominates a market with few competitors.

Question 19

Which of the following is false regarding groups and activities that are exempt from antitrust law?

Accepted Answer

A)The regulatory bodies in regulated industries,including airlines,utilities,and banking,have the authority to approve behaviors that might otherwise violate antitrust law.
B)The regulatory bodies in regulated industries,including airlines,utilities,and banking,have the authority to approve behaviors that might otherwise violate antitrust law.
C)The regulatory bodies in regulated industries,including airlines,utilities,and banking,have the authority to approve behaviors that might otherwise violate antitrust law.
D)The regulatory bodies in regulated industries,including airlines,utilities,and banking,have the authority to approve behaviors that might otherwise violate antitrust law.
E)The regulatory bodies in regulated industries,including airlines,utilities,and banking,have the authority to approve behaviors that might otherwise violate antitrust law.

Question 20

Is it a valid defense for a seller to engage in price discrimination in order to compete in good faith with another seller's low price?

Accepted Answer

A)If a seller engages in price discrimination to compete in good faith with another
seller's low price,the seller is not guilty of violating the Clayton Act.This defense to price discrimination is called the meeting-the-competition defense.
B)If a seller engages in price discrimination to compete in good faith with another seller's low price,the seller is not guilty of violating the Clayton Act.This defense to price discrimination is called the meeting-the-competition defense.
C)If a seller engages in price discrimination to compete in good faith with another seller's low price,the seller is not guilty of violating the Clayton Act.This defense to price discrimination is called the meeting-the-competition defense.
D)If a seller engages in price discrimination to compete in good faith with another seller's low price,the seller is not guilty of violating the Clayton Act.This defense to price discrimination is called the meeting-the-competition defense.
E)If a seller engages in price discrimination to compete in good faith with another seller's low price,the seller is not guilty of violating the Clayton Act.This defense to price discrimination is called the meeting-the-competition defense.

Quiz 47: Antitrust Law