Question 1

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

Accepted Answer

The appellate court found that Microsoft employed illegal anticompetitive means to maintain and further their monopoly of the operating systems market. This was a violation of the Sherman Act. The court concluded that Microsoft engaged in anti-competitive conduct by bundling its Internet Explorer browser with its Windows operating system, making it difficult for competitors to offer alternative browsers to consumers.

Question 2

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

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Question 3

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

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Question 4

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?

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Question 5

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?

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Question 6

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

Accepted Answer

The appellate court reversed the district court's remedy that Microsoft should be broken apart, although it agreed that Microsoft had engaged in anticompetitive practices.

Question 7

Which president is known for leading the antitrust reform movement?

Accepted Answer

Theodore Roosevelt is known for leading the antitrust reform movement, as he believed that large corporations had too much power and could harm competition and the economy. He pursued a number of antitrust cases, including the famous lawsuit against the Northern Securities Company. His efforts led to the passage of the Sherman Antitrust Act and other laws that aimed to regulate monopolies and promote competition.

Question 8

Which of the following is not a vertical restraint?

Accepted Answer

Market allocation is a type of horizontal restraint.

Question 9

Discuss the early motivations for enacting antitrust laws.

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Question 10

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 their distributors' markets?

Accepted Answer

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Question 11

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

Accepted Answer

A company may offer evidence that their actions were justified and necessary under the economic conditions in defense to an antitrust violation under the rule of reason standard. This can include showing that their actions resulted in pro-competitive benefits that outweighed any potential harm to competition. Other possible defenses may include showing that there was no economic harm to consumers or that the anticompetitive effects of their actions were outweighed by other benefits. However, a violation of the rule of reason standard cannot be defended on the grounds that the harm caused was not harmful to the government.

Question 12

Discuss the difference between horizontal and vertical price fixing.

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Question 13

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

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Question 14

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

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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 their 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?

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Question 16

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

Accepted Answer

In United States v. Colgate, the Supreme Court held that a unilateral boycott does not fall under the Sherman Act as long as it does not involve a conspiracy or combination with others to restrain trade.

Question 17

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

This is a boycott, as Christian and Jimmy have jointly decided to stop selling their shoes to a particular department store as a form of protest against the store's pricing practices. This is not price fixing, as they are not coordinating prices with other manufacturers or stores. It is also not market allocation, as they are not dividing up customers or territories. There is a meeting of the minds, in that they have discussed and agreed on this action, but that is not the primary restraint at play here.

Question 18

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

Accepted Answer

Antitrust laws designed to combat the problem of monopolization are focused on structural offenses, which means preventing the formation or maintenance of a monopoly through mergers, acquisitions, or other practices that restrict competition. Horizontal restraints and rules of reason are related to different types of antitrust violations. Consent orders refer to the settlement agreements between the government and the accused companies that agree to take certain actions to meet antitrust requirements.

Question 19

In American Needle Inc.v.National Football League,the NFL had entered into an agreement with Reebok to manufacture 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 U.S. Supreme Court found that the NFL teams were not a single-entity and were subject to the Sherman Act, meaning that the Reebok agreement could potentially be seen as an antitrust violation. This decision overturned a previous lower court ruling that had found the NFL to be a single-entity.

Question 20

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

Accepted Answer

The test to determine if an entity has monopoly power is the share of the relevant market. This refers to the percentage of total sales or production of a particular product or service that is controlled by a single entity. If a company holds a significant share of the market, it may be considered to have monopoly power.

Quiz 19: Antitrust and Regulation of Competition