Question 1

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 conditioning shipments of its products to Exurb Stores, Inc. on the agreement not to buy products from City's competitor, Regional Works Company. This type of agreement limits the competition in the market and is often illegal under antitrust laws.

Question 2

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

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Question 3

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 (FTC) has the power to act against unfair trade practices under the Federal Trade Commission Act. The Clayton Act and the Sherman Act also address antitrust violations, but the FTC specifically is tasked with enforcing the Federal Trade Commission Act.

Question 4

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, such as denying access to essential facilities or excluding competitors from a vital input or distribution channel. Refusing to deal on its own is not necessarily anti-competitive, but if it harms competition in a specific market, it can be deemed unlawful. The other choices are not relevant to determining the legality of a unilateral refusal to deal under antitrust laws.

Question 5

Precious Metals Corporation, a raw materials vendor, sells its commodities in certain quantities to Quarry Refining Company for a certain price but charges Rich Assets, Inc., a Quarry competitor, a higher price.This is most likely a violation of

Accepted Answer

The answer of Precious Metals Corporation, a raw materials vendor,...

Question 6

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

Accepted Answer

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

Question 7

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

Both Big U.S.Oil and the foreign cartel can be sued for violation of U.S. antitrust laws if they collude to control the price of oil and have a substantial effect on U.S. commerce. The Sherman Antitrust Act prohibits price-fixing and other anticompetitive practices, and it applies to both domestic and foreign actors.

Question 8

Mango Corporation believes that Melon Corporation engages in anticompetitive 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

Both the Federal Trade Commission and the U.S. Department of Justice have the authority to enforce antitrust laws against companies engaged in anticompetitive behavior, not just the affected competitors. Therefore, Melon Corporation can be enforced upon by Mango, its competitors, the Federal Trade Commission, and the U.S. Department of Justice.

Question 9

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

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Question 10

Luminescent Silicon Corporation, which controls 40 percent of the computer-chip market 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 between Luminescent Silicon Corporation and Micro Processors, Inc. violates antitrust laws if the result more clearly concentrates the market and makes it more difficult for potential competitors to enter the market, which is likely the case since the combined market share of the two companies will be 55 percent.

Question 11

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.

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Question 12

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, however.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 contracts be held illegal?

Accepted Answer

The answer of Java Bean Company imports coffee beans and...

Quiz 23: Antitrust Law and Promoting Competition