Question 1

A suit is filed against Dormroom Furniture Unlimited,Inc.,alleging that the firm has committed the offense of monopolization.To determine whether Dormroom has committed this offense,the court will consider the extent of Dormroom's market power and​

Accepted Answer

To determine whether Dormroom has committed the offense of monopolization, the court will consider the extent of Dormroom's market power and how it acquired that power. This is because monopolization requires a firm to have significant market power and to have obtained or maintained that power through anti-competitive conduct. The other options (B, C, and D) are not relevant to the question of whether Dormroom has committed monopolization.

Question 2

Vineyard owners and wine producers join together to form Vino Veritas,a trade association.This​

Accepted Answer

The formation of a trade association by vineyard owners and wine producers could potentially be legal if it benefits both the association and the public. It would not be a per se violation of Section 1 of the Sherman Act unless it created illegal territorial or customer restrictions. Without more information, it is impossible to determine if this is an innovative and legally efficient approach to doing business.

Question 3

An antitrust action is brought against Tri-State Transport Company,al-leging the offense of attempted monopolization.To be guilty of this of-fense,Tri-State's attempt must have​

Accepted Answer

In an attempted monopolization offense, the attempt must have a dangerous probability of success, which means there is a substantial likelihood that Tri-State could achieve a monopoly in its relevant market. A distant possibility or distinct improbability of success would not meet this standard, and a deadly guaranty of success is irrelevant to the analysis.

Question 4

Edgy Engine Components,Inc.,a maker of vehicle parts,refuses to sell to Fidgety Fix-It,Inc.,a national vehicle service firm.Edgy Engine convinces Greasy Motor Parts Company,a competitor,to do the same.This is​

Accepted Answer

This is a clear example of a group boycott where Edgy Engine Components, Inc. and Greasy Motor Parts Company have colluded to refuse to sell to Fidgety Fix-It, Inc. Such behavior is illegal under antitrust laws as it restricts competition and harms consumers.

Question 5

Listen Up! Corporation books and promotes concerts and other entertainment events,for which Listen Up! also sells tickets.In weighing a challenge to Listen Up!'s "monopolistic" ticket prices,a court looks at the relevant geographic market.This encompasses​

Accepted Answer

The relevant geographic market for evaluating Listen Up!'s monopolistic practices would be the area in which Listen Up! and its competitors sell tickets, and their customers buy them. This would include all areas in which Listen Up! operates and has competitors, regardless of whether Listen Up! has monopoly power in those areas. The entire United States would likely be too broad of a market for this analysis.

Question 6

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

Accepted Answer

The answer of Fresh Vegetables,Inc.,a wholesaler,refuses to sell its produce...

Question 7

Imperio Caffeine Corporation makes and sells coffee under a variety of brand names.Imperio wants to merge with Java Company,its main competitor.In weighing a challenge to the deal,a court looks at the relevant product market.This most likely includes coffee and​

Accepted Answer

The answer of Imperio Caffeine Corporation makes and sells coffee...

Question 8

A court deems an agreement between Silver Saddles Saddlery and Time Tested Tack,Inc.to be a per se violation of the Sherman Act.The court is​

Accepted Answer

The answer of A court deems an agreement between Silver...

Question 9

Spa Selectiva Company makes and sells beauty salon supplies.By selling its product at prices substantially below the normal cost of production,Spa Selectiva hopes to drive its competitors from the market.This is​

Accepted Answer

This is an example of predatory pricing, where a company sets prices so low that it drives competitors out of business, eventually allowing the predatory company to dominate the market and raise prices again. This is considered anti-competitive behavior and is illegal.

Question 10

Organic Cheeses,Inc.,Fine & Fresh Foods Company,and Healthy Whole Foods,Inc.organize together to exchange information and share advertising.This is an example of a​

Accepted Answer

This scenario describes a trade association, which is a group of businesses in the same industry that come together to share information and promote the industry as a whole.

Question 11

Pads & Pods Corporation requires all distribu-tors of its products to sell the products at specified minimum prices.This resale price mainte-nance agreement is​

Accepted Answer

Resale price maintenance agreements are evaluated under the rule of reason, which requires an assessment of the agreement's pro-competitive and anti-competitive effects. While such agreements can have anti-competitive effects, they can also have pro-competitive benefits, such as promoting competition based on non-price factors or securing adequate distribution services. Therefore, the agreements are not per se illegal but must be evaluated on a case-by-case basis.

Question 12

Bodycare Pharma Corporation makes and sells ChemMed,the most prescribed name-brand blood pressure-lowering medication.Deja Vu Drugs,Inc.,has the potential to make a generic version of the same drug.Bodycare pays Deja Vu not to sell its product.This is

Accepted Answer

The answer of Bodycare Pharma Corporation makes and sells ChemMed,the...

Question 13

A suit is filed against AgriSeeds Corporation,alleging that the firm commit-ted the offense of monopolization.To determine whether AgriSeeds has mo-nopoly power requires looking at

Accepted Answer

To determine whether AgriSeeds has monopoly power, it is necessary to look at the relevant geographic market and the relevant product market. This involves analyzing the market structure, market share, barriers to entry, and other factors that may contribute to AgriSeeds' market power. A company's size alone or the marketing practices of its competitors may not be sufficient indicators of monopolization. Production methods and marketing techniques may be relevant but are not sufficient on their own to determine monopoly power.

Question 14

Which of the following is not a per se violation of Section 1 of the Sherman Act?​

Accepted Answer

A trade association is not necessarily a per se violation of Section 1 of the Sherman Act. It depends on the actions taken by the trade association. Price-fixing agreements, group boycotts, and market divisions are per se violations of Section 1.

Question 15

Excavators & Haulers,Inc.,is the major wholesale distributor of heavy equipment in the state of Georgia.Its closest competitor is Forklifts & Tractors Company,an-other Georgia firm.The two firms agree that Excavators will operate in southern Georgia and Forklifts will operate in northern Georgia.This is​

Accepted Answer

The agreement between the two firms to operate in different regions of Georgia is a market division arrangement. This is an anti-competitive practice that divides the market among participants and limits competition, which could result in higher prices for consumers. It is illegal under antitrust laws.

Question 16

Rugged Bikes,Inc.,makes Rugged-brand bicycles and accessories,which are distributed to authorized dealers,including Super Sports Equipment,Inc.Super Sports operates dealerships in several locations.Rugged Bikes imposes restrictions on Super Sports to limit the area in which it sells bikes and thereby insulate other dealers from direct competition.This is​

Accepted Answer

The scenario describes a territorial restriction, which limits the area in which Super Sports can sell Rugged-brand bicycles and accessories. This is a common practice in industries where manufacturers have multiple authorized dealers to prevent direct competition and ensure each dealer has a viable market within their designated territory.

Question 17

Rally Speedboat Corporation refuses to sell its products to Super Weekends,Inc.,a recreational water products dealership.This is​

Accepted Answer

Rally Speedboat Corporation's refusal to sell its products to Super Weekends, Inc. is an example of a unilateral refusal to deal. This means that Rally Speedboat Corporation has no legal obligation to sell its products to any particular buyer, including Super Weekends, Inc. It is within their rights to choose who they want to do business with.

Question 18

Healthcare Device,Inc.,has exclusive control over the market for its product.Healthcare Device's market power is most likely​

Accepted Answer

The answer of Healthcare Device,Inc.,has exclusive control over the market...

Question 19

To acquire monopoly power in its market,Global Positioning Systems,Inc.,sets its prices substantially below the normal costs of production.Under antitrust law,this is​

Accepted Answer

The answer of To acquire monopoly power in its market,Global...

Question 20

Marvin starts Marvin's Bike Company in Wheatland,South Dakota.There is one other bike store in Wheatland.Through good business management,Marvin's Bike Company obtains a great deal of market power in Wheatland.This is​

Accepted Answer

Obtaining market power through good business management alone does not constitute an antitrust violation. Antitrust laws are designed to prevent anti-competitive behavior, such as collusion or monopolistic practices, that harm competition and consumers. As long as Marvin's Bike Company did not engage in illegal business practices to obtain its market power, such as price fixing or exclusive deals with suppliers, it is not in violation of antitrust laws.

Quiz 19: Antitrust Law and Promoting Competition

A suit is filed against Dormroom Furniture Unlimited,Inc.,alleging that the firm has committed the offense of monopolization.To determine whether Dormroom has committed this offense,the court will consider the extent of Dormroom's market power and​

Vineyard owners and wine producers join together to form Vino Veritas,a trade association.This​

An antitrust action is brought against Tri-State Transport Company,al-leging the offense of attempted monopolization.To be guilty of this of-fense,Tri-State's attempt must have​

Edgy Engine Components,Inc.,a maker of vehicle parts,refuses to sell to Fidgety Fix-It,Inc.,a national vehicle service firm.Edgy Engine convinces Greasy Motor Parts Company,a competitor,to do the same.This is​

Listen Up! Corporation books and promotes concerts and other entertainment events,for which Listen Up! also sells tickets.In weighing a challenge to Listen Up!'s "monopolistic" ticket prices,a court looks at the relevant geographic market.This encompasses​

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

Imperio Caffeine Corporation makes and sells coffee under a variety of brand names.Imperio wants to merge with Java Company,its main competitor.In weighing a challenge to the deal,a court looks at the relevant product market.This most likely includes coffee and​

A court deems an agreement between Silver Saddles Saddlery and Time Tested Tack,Inc.to be a per se violation of the Sherman Act.The court is​

Spa Selectiva Company makes and sells beauty salon supplies.By selling its product at prices substantially below the normal cost of production,Spa Selectiva hopes to drive its competitors from the market.This is​

Organic Cheeses,Inc.,Fine & Fresh Foods Company,and Healthy Whole Foods,Inc.organize together to exchange information and share advertising.This is an example of a​

Pads & Pods Corporation requires all distribu-tors of its products to sell the products at specified minimum prices.This resale price mainte-nance agreement is​

Bodycare Pharma Corporation makes and sells ChemMed,the most prescribed name-brand blood pressure-lowering medication.Deja Vu Drugs,Inc.,has the potential to make a generic version of the same drug.Bodycare pays Deja Vu not to sell its product.This is

A suit is filed against AgriSeeds Corporation,alleging that the firm commit-ted the offense of monopolization.To determine whether AgriSeeds has mo-nopoly power requires looking at

Which of the following is not a per se violation of Section 1 of the Sherman Act?​

Rally Speedboat Corporation refuses to sell its products to Super Weekends,Inc.,a recreational water products dealership.This is​

Healthcare Device,Inc.,has exclusive control over the market for its product.Healthcare Device's market power is most likely​

To acquire monopoly power in its market,Global Positioning Systems,Inc.,sets its prices substantially below the normal costs of production.Under antitrust law,this is​

Marvin starts Marvin's Bike Company in Wheatland,South Dakota.There is one other bike store in Wheatland.Through good business management,Marvin's Bike Company obtains a great deal of market power in Wheatland.This is​

A suit is filed against Dormroom Furniture Unlimited,Inc.,alleging that the firm has committed the offense of monopolization.To determine whether Dormroom has committed this offense,the court will consider the extent of Dormroom's market power and

Vineyard owners and wine producers join together to form Vino Veritas,a trade association.This

An antitrust action is brought against Tri-State Transport Company,al-leging the offense of attempted monopolization.To be guilty of this of-fense,Tri-State's attempt must have

Edgy Engine Components,Inc.,a maker of vehicle parts,refuses to sell to Fidgety Fix-It,Inc.,a national vehicle service firm.Edgy Engine convinces Greasy Motor Parts Company,a competitor,to do the same.This is

Listen Up! Corporation books and promotes concerts and other entertainment events,for which Listen Up! also sells tickets.In weighing a challenge to Listen Up!'s "monopolistic" ticket prices,a court looks at the relevant geographic market.This encompasses

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

Imperio Caffeine Corporation makes and sells coffee under a variety of brand names.Imperio wants to merge with Java Company,its main competitor.In weighing a challenge to the deal,a court looks at the relevant product market.This most likely includes coffee and

A court deems an agreement between Silver Saddles Saddlery and Time Tested Tack,Inc.to be a per se violation of the Sherman Act.The court is

Spa Selectiva Company makes and sells beauty salon supplies.By selling its product at prices substantially below the normal cost of production,Spa Selectiva hopes to drive its competitors from the market.This is

Organic Cheeses,Inc.,Fine & Fresh Foods Company,and Healthy Whole Foods,Inc.organize together to exchange information and share advertising.This is an example of a

Pads & Pods Corporation requires all distribu-tors of its products to sell the products at specified minimum prices.This resale price mainte-nance agreement is

Which of the following is not a per se violation of Section 1 of the Sherman Act?

Rally Speedboat Corporation refuses to sell its products to Super Weekends,Inc.,a recreational water products dealership.This is

Healthcare Device,Inc.,has exclusive control over the market for its product.Healthcare Device's market power is most likely

To acquire monopoly power in its market,Global Positioning Systems,Inc.,sets its prices substantially below the normal costs of production.Under antitrust law,this is

Marvin starts Marvin's Bike Company in Wheatland,South Dakota.There is one other bike store in Wheatland.Through good business management,Marvin's Bike Company obtains a great deal of market power in Wheatland.This is