Question 1

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 can enforce antitrust laws, along with the affected competitors in the market. Therefore, option C is the best choice as it includes all the parties that can enforce antitrust laws against Melon Corporation.

Question 2

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.

Accepted Answer

The answer of Bubbly Bottling Company is engaged in the...

Question 3

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...

Question 4

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 has the power to act against unfair trade practices under the Federal Trade Commission Act.

Question 5

Fairway Products,Inc.,and Golly Golf Clubs Corporation lobby Congress to pass a law banning a competitor's product.This joint effort is probably

Accepted Answer

Lobbying Congress to ban a competitor's product can be seen as anti-competitive behavior and a violation of antitrust statutes. Such behavior aims to restrict competition in the market, which goes against the principles of antitrust law.

Question 6

Excel Corporation conditions shipments of its products to Federated Stores,Inc.,on Federated's agreement not to buy products from Great Goods Company,Excel's competitor.This is

Accepted Answer

This is an exclusive-dealing contract where Excel Corporation conditions its shipments on Federated Stores, Inc. agreeing not to buy products from its competitor, Great Goods Company.

Question 7

Luminescent Silicon Corporation,which controls 40 percent of the computer-chip market in the United States,merges with Micro Processors,Inc.,which controls 15 percent of the same market.This merger is

Accepted Answer

This merger is a violation if it more clearly concentrates the market and makes it more difficult for potential competitors to enter the market. The combined market share of Luminescent Silicon Corporation and Micro Processors, Inc. would be 55%, which is a significant portion of the computer-chip market in the United States. This concentration may lead to reduced competition, increased prices, and decreased innovation, which may make it more difficult for potential competitors to enter the market. Thus, this merger should be evaluated under antitrust laws to determine if it violates the regulatory framework.

Question 8

International Software,Inc.,conditions the sale of one of its products on Nationwide Office System's agreeing to buy another of International's products.This deal is

Accepted Answer

This deal may be legal depending on its purpose and effect on competition. If the purpose is to increase efficiency or lower costs, and it does not harm competition, it may be allowed by antitrust laws. However, if the purpose is to eliminate competition or create a monopoly, it would be illegal. Production and transportation costs are not relevant to the legal analysis of this type of agreement.

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

Accepted Answer

The answer of To drive its competitors out of a...

Question 10

Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies,Inc.,only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products,even though there are other corn sellers from whom Nice Candies could buy.This is

Accepted Answer

This scenario describes a tying arrangement, where the sale of one product (sugar substitute) is tied to the purchase of another product (corn) from the same seller. This practice may create barriers for competition and limit the options of the buyer.

Question 11

Tasty Eatin' Corporation merges with Hasty Burgers,Inc.This merger between firms that compete with each other in the same market is

Accepted Answer

A horizontal merger is a merger between two firms that compete with each other in the same market. In this case, Tasty Eatin' Corporation and Hasty Burgers, Inc. are both in the fast food industry and are direct competitors, making it a horizontal merger.

Question 12

By contract,Quality Metals Corporation forbids Resource Refining,Inc.,a wholesale buyer of Quality's products,from purchasing the products of Quality's competitors.This is allowed

Accepted Answer

The restriction on purchasing the products of Quality's competitors may be allowed under certain circumstances, but not if it substantially lessens competition. This type of restriction may be considered anti-competitive and violate antitrust laws. It is important to promote fair competition in the marketplace for the benefit of consumers.

Quiz 23: Antitrust Law and Promoting Competition