Question 1

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,...

Question 2

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 has the power to act against unfair trade practices under the Federal Trade Commission Act, which empowers the agency to investigate and challenge unfair methods of competition and deceptive acts or practices in commerce.

Question 3

A unilateral refusal to deal can violate antitrust laws if the refusal

Accepted Answer

A unilateral refusal to deal can violate antitrust laws if it is likely to have an anticompetitive effect on a particular market. This means that if the refusal harms competition in a specific market, it can be considered a violation of antitrust laws. The other options are not necessarily true, as lower prices for consumers or no economic benefits for consumers may not necessarily be related to antitrust violations, and an increase in competition may actually be desirable from an antitrust perspective.

Question 4

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

If the foreign cartel and Big U.S. Oil join together to control the price of oil and if this has a substantial effect on U.S. commerce, then both companies can be sued for violation of U.S. antitrust laws under the Sherman Antitrust Act. This act forbids any activities that restrain trade or monopolize commerce. Therefore, both companies would be held responsible for their act to control the oil prices, leading to the violation of Antitrust laws.

Question 5

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, as City Manufacturing Corporation is requiring Exurb Stores, Inc. to only purchase products from them and not their competitor.

Question 6

HVAC Parts Company charges different buyers different prices for identi?cal goods. HVAC's prices are subject to evaluation under

Accepted Answer

The answer of HVAC Parts Company charges different buyers different...

Question 7

To drive its competitors out of a certain geographic segment of its market, Fryin' Potatoes, 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 8

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 9

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 injured parties such as Mango and its competitors. Therefore, the correct answer is C, which includes all of these entities.

Question 10

Luminescent 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 of Luminescent Silicon Corporation and Micro Processors, Inc. will result in a concentration of 55% of the computer-chip market in the United States, which is more clearly concentrated than before. Potential competitors may find it more difficult to enter the market due to the dominant market position of the merged company. Therefore, the merger violates antitrust laws under both of these circumstances.

Question 11

Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Mart Stores, Inc., a re?tailer. This is

Accepted Answer

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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 39: Promoting Competition