2 - Ch 5

Question 1

Prohibition of prices

Answer 1

any agreement to charge an agreed-upon price is per se violation of the Sherman Act

Question 2

The Sherman Act

Answer 2

Price discussion among competitors is considered an attempt to monopolize

Question 3

Monopolization

Answer 3

courts must determine whether the business has market power, the ability to control price and exclude competitors. Purposeful conduct to exclude competitors is a monopoly

Question 4

The Clayton Act

Answer 4

prohibits mergers that will lessen competition or create a monopoly

Question 5

Price discrimination is permitted if justified

Answer 5

-a difference in grade, quality, or quantity
-the cost in transition
-a good-faith effort to meet competition
-differences in marginal cost
-deterioration of goods or a close-out sale

Question 6

resale price maintenance

Answer 6

an attempt by manufacturers to control the prices that retailers can charge for their goods

Question 7

Tying

Answer 7

when the seller makes a buyer who wants to purchase one product buy an additional product that he or she does not want

Question 8

Robinson-Patman Act

Answer 8

a federal statute designed to eliminate price discrimination in interstate commerce

Question 9

price discrimination

Answer 9

the charging by a seller of different prices to different buyers for commodities of similar grade and quality, resulting in reduced competition or a tendency to create a monopoly

Question 10

market power

Answer 10

the ability to control price and exclude competitors

Question 11

tying

Answer 11

the anticompetitive practice of requiring buyers to purchase one product in order to get another

Question 12

divestiture order

Answer 12

a court order to dispose of interests that could lead to a monopoly

Question 13

takeover laws

Answer 13

laws that guard against unfairness in corporate takeover situations

Question 14

treble damages

Answer 14

three times the damages actually sustained