All of the following are true about a consent decree except for
A) Requires the merging parties to divest overlapping businesses
B) An acquirer may seek to negotiate a consent decree in advance of consummating a deal.
C) In the absent of a consent decree, a buyer usually makes the receipt of regulatory approval necessary to closing the deal.
D) FTC studies indicate that consent decrees have historically been largely ineffectual in promoting competition
E) Consent decrees tend to be most effective in promoting competition if the divestitures made by the acquiring firms are to competitors.

Question

Quizplus · Accepted Answer

The statement "FTC studies indicate that consent decrees have historically been largely ineffectual in promoting competition" is false. While there is debate over the effectiveness of consent decrees, there is evidence that they have been successful in promoting competition in certain cases. The other statements are all true about consent decrees.

All of the Following Are True About a Consent Decree