Question 1

All price discrimination is illegal under the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 2

If United Widgets lowers its price to all buyers of 10 or more widgets because it costs United less to sell that quantity,it is not a violation of the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 3

The principal objective of antitrust law governing mergers is to maintain competition.

Accepted Answer

A) True 
 B)False

Question 4

The Clayton Act deals with which of the following situations?

Accepted Answer

A)  Supply discrimination.
B)  Tying contracts and mergers.
C)  Interlocking ties.
D)  Monopoly conspiracies.E) All of the above
F) A) and B)

Question 5

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Accepted Answer

A) True 
 B)False

Question 6

If all milk producers in the area agree to set a minimum price for raw milk,this would be an example of:

Accepted Answer

A)  horizontal allocation.
B)  vertical market restraint.
C)  horizontal price fixing.
D)  a tying arrangement.E) A) and B)
F) None of the above

Question 7

Sarreno Cheese Co.supplies mozzarella cheese to pizza restaurants at $1.70 per pound.In order to snare the business of one large pizza chain,Sarreno offers to sell them cheese at $1.45 per pound.This will violate the Robinson-Patman Act unless:

Accepted Answer

A)  the pizza chain can already get the cheese for $1.45 elsewhere.
B)  Sarreno can show its price is justified because of a cost savings based on quantity.
C)  Sarreno lowers the price to all its customers.
D)  Two of the above, (b)  and (c) .
E)  Any of the above.F) A) and D)
G) A) and E)

Question 8

Regarding Section 2 of the Sherman Act,the standard test applied by the courts requires proof of a specific intent to monopolize plus a dangerous probability of success; however,this test neither defines "intent" nor gives a standard of power by which to measure "success."

Accepted Answer

A) True 
 B)False

Question 9

Like the Sherman Act,Section 3 of the Clayton Act applies only to practices involving commodities,not to those that involve services,intangibles,or land.

Accepted Answer

A) True 
 B)False

Question 10

W & W,Inc.manufactures and sells widgets.It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers.Does Marklin have liability for price discrimination? Does W & W,Inc.have liability for price discrimination?

Accepted Answer

W & W,Inc.,if its action substantially l...

Question 11

The courts have interpreted the Sherman Act as prohibiting contracts that unreasonably restrain trade.

Accepted Answer

A) True 
 B)False

Question 12

Characterizing a type of restraint as per se illegal significantly affects the prosecution of an antitrust suit.

Accepted Answer

A) True 
 B)False

Question 13

All tying arrangements are per se illegal.

Accepted Answer

A) True 
 B)False

Question 14

The National Tax Accountants Professional Association (TAPA)  has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:

Accepted Answer

A)  	a per se price fixing violation of the Sherman Act.
B)  	not a violation of the Sherman Act, because it has been made by a professional association.
C)  	not a violation of the Sherman Act, because a fee is different from a price.
D)  	subject to the rule of reason.E) A) and C)
F) B) and D)

Question 15

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

Accepted Answer

A)  this is per se illegal.
B)  there is no violation.
C)  this will be tested under the rule of reason.
D)  there is a tying arrangement.E) B) and C)
F) C) and D)

Question 16

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

Accepted Answer

A) True 
 B)False

Question 17

A restraint of trade may be classified as either horizontal or vertical.

Accepted Answer

A) True 
 B)False

Question 18

The National Cooperative Research Act provides that:

Accepted Answer

A)  joint ventures in the research and development of new technology are to be judged under the rule of reason test.
B)  treble damages apply to all joint ventures formed in violation of the antitrust laws.
C)  joint venture participants must under all circumstances report their intent to the Justice Department.
D)  joint ventures formed to divide markets and fix prices are not illegal.E) C) and D)
F) None of the above

Question 19

Section 1 of the Sherman Act does not prohibit concerted action.

Accepted Answer

A) True 
 B)False

Question 20

Under the 2004 amendments,corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Accepted Answer

A) True 
 B)False

Exam 42: Antitrust

Section 1 of the Sherman Act does not prohibit concerted action.

Correct AnswerverifiedShow Answer

The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:

Correct AnswerverifiedShow Answer

McDonald's Corporation grants to Bob a franchise in which he will be the only one who has the right to sell McDonald's products in his small hometown.Under the Sherman Act:

Correct AnswerverifiedShow Answer

Under the 2004 amendments,corporate offenders who violate Sections 1 or 2 of the Sherman Act face fines of up to $100 million per violation.

Correct AnswerverifiedShow Answer

If United Widgets lowers its price to all buyers of 10 or more widgets because it costs United less to sell that quantity,it is not a violation of the Robinson-Patman Act.

Correct AnswerverifiedShow Answer

If all milk producers in the area agree to set a minimum price for raw milk,this would be an example of:

Correct AnswerverifiedShow Answer

In 1992 Horizontal Merger Guidelines were jointly issued by the Justice Department and the Federal Trade Commission.

Correct AnswerverifiedShow Answer

The courts have interpreted the Sherman Act as prohibiting contracts that unreasonably restrain trade.

Correct AnswerverifiedShow Answer

Regarding Section 2 of the Sherman Act,the standard test applied by the courts requires proof of a specific intent to monopolize plus a dangerous probability of success; however,this test neither defines "intent" nor gives a standard of power by which to measure "success."

Correct AnswerverifiedShow Answer

All price discrimination is illegal under the Robinson-Patman Act.

Correct AnswerverifiedShow Answer

Characterizing a type of restraint as per se illegal significantly affects the prosecution of an antitrust suit.

Correct AnswerverifiedShow Answer

The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been prohibited.

Correct AnswerverifiedShow Answer

Sarreno Cheese Co.supplies mozzarella cheese to pizza restaurants at $1.70 per pound.In order to snare the business of one large pizza chain,Sarreno offers to sell them cheese at $1.45 per pound.This will violate the Robinson-Patman Act unless:

Correct AnswerverifiedShow Answer

The National Cooperative Research Act provides that:

Correct AnswerverifiedShow Answer

The principal objective of antitrust law governing mergers is to maintain competition.

Correct AnswerverifiedShow Answer

Like the Sherman Act,Section 3 of the Clayton Act applies only to practices involving commodities,not to those that involve services,intangibles,or land.

Correct AnswerverifiedShow Answer

A restraint of trade may be classified as either horizontal or vertical.

Correct AnswerverifiedShow Answer

The Clayton Act deals with which of the following situations?

Correct AnswerverifiedShow Answer

W & W,Inc.manufactures and sells widgets.It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers.Does Marklin have liability for price discrimination? Does W & W,Inc.have liability for price discrimination?

Correct AnswerverifiedW & W,Inc.,if its action substantially l...View AnswerShow Answer

All tying arrangements are per se illegal.

Correct AnswerverifiedShow Answer

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W & W,Inc.,if its action substantially l...
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