Question 1

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court held the practice was:

Accepted Answer

The appeals court found the practice to be illegal if the sharing of information produced anticompetitive effects in salaries. This suggests that the practice is not per se illegal, but rather depends on the effects it has on competition.

Question 2

A(n) ____ occurs when firms competing at the same level of business reach an agreement to divide the market on geographic or other terms.

Accepted Answer

A horizontal restraint of trade, also known as horizontal market division, occurs when competing firms at the same level of business agree to divide the market on geographic or other terms. This is prohibited by antitrust laws as it reduces competition and harms consumers.

Question 3

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court noted that:

Accepted Answer

The appeals court noted that transparency, such as making the information public, can mitigate antitrust concerns, making a court more likely to approve the data exchange.

Question 4

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court held the practice was:

Accepted Answer

The appeals court held that the practice was not per se illegal but could be illegal under a rule of reason analysis if it had an anticompetitive effect.

Question 5

Horizontal market division is often held to violate antitrust law because it:

Accepted Answer

Horizontal market division violates antitrust law because it eliminates competition among firms competing in a national market, which can lead to monopolistic practices and harm consumer interests.

Question 6

In FTC v. Indiana Federation of Dentists, a dentists' organization required its members to withhold x-rays from insurance companies. The Supreme Court held this rule:

Accepted Answer

The Supreme Court held the dentists' organization's rule illegal based on a rule of reason analysis, determining that the practice was anticompetitive and violated antitrust laws.

Question 7

To avoid violating antitrust law while attending industry conventions, competitors should NOT:

Accepted Answer

To avoid violating antitrust law while attending industry conventions, competitors should not discuss prices or anything that might affect prices, make public announcements or statements about their own prices or competitors' prices, or talk about company plans for particular geographic product markets. Therefore, all of these specific choices are correct.

Question 8

Horizontal market division allows competing firms to:

Accepted Answer

Horizontal market division, where competing firms divide markets among themselves, typically reduces competition rather than enhancing efficiency, diversification, employment practices, or worker benefits.

Question 9

Horizontal market division allows competing firms to:

Accepted Answer

Horizontal market division typically involves competing firms dividing markets among themselves, which can lead to each firm exercising monopoly power within its designated region. This can reduce competition in those areas, potentially allowing firms to set higher prices or control market conditions more effectively than in a competitive market scenario.

Question 10

The Indiana Federation of Dentists required its members not to provide insurance companies with patient x-rays. The FTC sued the Federation, claiming that it violated the antitrust laws. The Supreme Court held that dentists:

Accepted Answer

The Supreme Court held that the Indiana Federation of Dentists' agreement not to provide patient x-rays to insurance companies was an unlawful restraint of trade under the antitrust laws. The dentists could not band together to conspire in restraint of trade against the insurance companies. Therefore, option C is the correct answer.

Question 11

In U.S. v. United States Gypsum, regarding sharing of price information by gypsum makers, the Supreme Court held that:

Accepted Answer

The answer of In U.S. v. United States Gypsum, regarding...

Question 12

Horizontal market division is often held to violate antitrust law because it:

Accepted Answer

The answer of Horizontal market division is often held to...

Question 13

Which of the following actions at an industry convention could be a violation of antitrust law:

Accepted Answer

Discussing prices of own and competitors' products at an industry convention could be considered collusion and a violation of antitrust law.

Question 14

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court noted that:

Accepted Answer

The answer of In Todd v. Exxon Corp., where Exxon...

Question 15

To avoid violating antitrust law while attending industry conventions, competitors should:

Accepted Answer

To avoid violating antitrust law, competitors should not discuss prices or anything that might affect prices or talk about company plans for particular geographic product markets at industry conventions. Making public announcements or statements about your own prices may also be a violation of antitrust law if it is done in conjunction with competitors. Therefore, none of the other specific choices are correct.

Question 16

In U.S. v. United States Gypsum, regarding sharing of price information by gypsum makers, the Supreme Court held that:

Accepted Answer

In U.S. v. United States Gypsum, the Supreme Court did not hold any of the specific positions listed in options A, B, C, or D regarding the sharing of price information by gypsum makers. Instead, the Court's decision focused on the intent behind the information sharing and whether it constituted an illegal action under antitrust laws, rather than broadly applying a per se rule or exempting the industry due to its size or sector.

Question 17

A(n) ____ occurs when firms competing at the same level of business reach an agreement to divide the market on geographic or other terms.

Accepted Answer

Market division among firms competing at the same level typically refers to a horizontal market division, not covered by the options provided. This involves dividing markets among competitors to avoid competition in certain areas or with certain customers, which can be illegal under antitrust laws. None of the provided choices accurately describe this concept.

Question 18

Agreements that provide horizontal ____ are often held to violate antitrust law.

Accepted Answer

Customer allocations refer to agreements between competitors to divide up customers or territories among themselves. Such agreements are usually considered illegal under antitrust law as they limit competition and can lead to higher prices for customers. Horizontal agreements that provide customer allocations are considered anti-competitive and can result in severe penalties.

Question 19

When firms competing at the same level of business agree to allocate territories in a market, and fix prices at the same time, the following may result:

Accepted Answer

When firms agree to allocate territories in a market and fix prices at the same time, it is called market allocation and price-fixing which may result in a reduction of competition within regions, exercise of monopoly power in their assigned region, violation of the Sherman Act, and their actions may be found per se illegal. Therefore, all of the choices are correct.

Question 20

In FTC v. Indiana Federation of Dentists, a dentists' organization required its members to withhold x-rays from insurance companies. The Supreme Court held this rule:

Accepted Answer

The answer of In FTC v. Indiana Federation of Dentists,...

Quiz 20: Antitrust Law

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court held the practice was:

A(n) ____ occurs when firms competing at the same level of business reach an agreement to divide the market on geographic or other terms.

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court noted that:

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court held the practice was:

Horizontal market division is often held to violate antitrust law because it:

In FTC v. Indiana Federation of Dentists, a dentists' organization required its members to withhold x-rays from insurance companies. The Supreme Court held this rule:

To avoid violating antitrust law while attending industry conventions, competitors should NOT:

Horizontal market division allows competing firms to:

Horizontal market division allows competing firms to:

The Indiana Federation of Dentists required its members not to provide insurance companies with patient x-rays. The FTC sued the Federation, claiming that it violated the antitrust laws. The Supreme Court held that dentists:

In U.S. v. United States Gypsum, regarding sharing of price information by gypsum makers, the Supreme Court held that:

Horizontal market division is often held to violate antitrust law because it:

Which of the following actions at an industry convention could be a violation of antitrust law:

In Todd v. Exxon Corp., where Exxon other oil companies hired a consultant to gather information about the salaries they paid professionals at the companies, and the information was used to help set salaries, the appeals court noted that:

To avoid violating antitrust law while attending industry conventions, competitors should:

In U.S. v. United States Gypsum, regarding sharing of price information by gypsum makers, the Supreme Court held that:

A(n) ____ occurs when firms competing at the same level of business reach an agreement to divide the market on geographic or other terms.

Agreements that provide horizontal ____ are often held to violate antitrust law.

When firms competing at the same level of business agree to allocate territories in a market, and fix prices at the same time, the following may result:

In FTC v. Indiana Federation of Dentists, a dentists' organization required its members to withhold x-rays from insurance companies. The Supreme Court held this rule: