Question 1

Antitrust laws designed to combat the problem of monopolization are known as:

Accepted Answer

Structural-offense laws are antitrust laws designed to combat the problem of monopolization.

Question 2

Which of the following is not a vertical restraint?

Accepted Answer

Market allocation is a type of horizontal restraint.

Question 3

Discuss the difference between horizontal and vertical price-fixing.

Accepted Answer

The answer of Discuss the difference between horizontal and vertical...

Question 4

What constitutes a meeting of the minds for antitrust laws? Why is it important?

Accepted Answer

The answer of What constitutes a meeting of the minds...

Question 5

What evidence may a company offer in defense to allegations of an antitrust violation under the rule of reason standard?

Accepted Answer

A company may offer evidence that its actions were justified and necessary under the economic conditions as a defense to allegations of antitrust behavior.

Question 6

Discuss the differences between the per se and rule of reason standards.

Accepted Answer

The answer of Discuss the differences between the per se...

Question 7

Boston Bikes makes mountain bikes and sells them through Sid's Sports and Mountain All Sports as exclusive distributors. Boston Bikes' interest is in making sure that Sid's Sports and Mountain All Sports do not compete with each other in the same geographic market to ensure that their pricing is in line with their competitors. May Boston Bikes put limits on its distributors' markets?

Accepted Answer

The answer of Boston Bikes makes mountain bikes and sells...

Question 8

Which president is known for leading the antitrust reform movement?

Accepted Answer

Theodore Roosevelt is known for his antitrust reforms.

Question 9

The CEO of a major computer technology firm wants to form an organization for computer firms in order to share data, information, and ideas. Depending on what was shared at the meetings, the organization may violate antitrust laws. What standard should be used to analyze the organization?

Accepted Answer

The answer of The CEO of a major computer technology...

Question 10

In U.S. v. Microsoft, the appellate court reversed the finding of the district court that:

Accepted Answer

The appellate court reversed the finding that Microsoft should be broken apart into separate business entities.

Question 11

What is the test to determine whether an entity has monopoly power?

Accepted Answer

An entity's share of the relevant market is used to determine whether the entity has a monopoly.

Question 12

In American Needle Inc. v. National Football League, the NFL had entered into an agreement with Reebok for the manufacture of all of its teams' official goods and claimed that all 32 teams were a single entity. American Needle sued, claiming that the Reebok agreement was an illegal conspiracy under the Sherman Act. The U.S. Supreme Court found that:

Accepted Answer

The Court found that the teams were not a single unit. They competed both on and off the field. The Sherman Act was applicable.

Question 13

Give an example of a boycott that would not be a per se horizontal restraint. Explain why it is not a per se horizontal restraint.

Accepted Answer

The answer of Give an example of a boycott that...

Question 14

In which case did the Supreme Court hold that a unilateral boycott does not fall under the Sherman Act?

Accepted Answer

The Supreme Court held in Colgate that a unilateral boycott does not fall under the Sherman Act. The holding has been narrowed but is still applicable.

Question 15

John owns a company that makes televisions. The company makes high-quality TVs and has a large share of the market. Recently John's company decided to expand its business into surround-sound systems. If the company requires its distributors to buy the surround-sound system as a condition of sale for the TVs, would there be an illegal restraint? Why or why not?

Accepted Answer

The answer of John owns a company that makes televisions....

Question 16

Christian and Jimmy both design and manufacture popular shoes. They believe that one of the department stores that carries both of their designs is undercutting the other department stores' prices. After discussion, Christian and Jimmy decide that they should not sell their shoes to the department store again. What type of restraint is this?

Accepted Answer

The decision not to sell their shoes to the department store is a boycott.

Question 17

Two car manufacturers entered into a joint venture to consolidate their efforts to create more fuel-efficient vehicles. The manufacturers agreed to split the expenses and profits from the joint venture equally. If an antitrust violation is alleged, what standard would be used to evaluate the manufacturers' actions?

Accepted Answer

The answer of Two car manufacturers entered into a joint...

Question 18

The U.S. Major League Soccer league wants to have more similarity in its licensed goods, so the league decides to contract with a single company to produce all of the licensed goods for every team. Will MLS be able to do so?

Accepted Answer

The answer of The U.S. Major League Soccer league wants...

Question 19

Discuss the early motivations for enacting antitrust laws.

Accepted Answer

The answer of Discuss the early motivations for enacting antitrust...

Question 20

In U.S. v. Microsoft, the appellate court found that:

Accepted Answer

The court held that Microsoft did employ illegal anticompetitive means to maintain and further its monopoly of the operating system market.

Quiz 20: Antitrust and Regulation of Competition