Anti Trust

Question 1

Define “collusion”.

Answer 1

Activity that may be evidenced by communications between the parties, opportunity to conspire, uniformity of action, etc.

Question 2

What activity is generally exempt from antitrust laws?

Answer 2

Labor union collective bargaining activity.

Question 3

Define “market power”.

Answer 3

The ability to raise prices without losing most customers.

Question 4

List some examples of antitrust statues.

Answer 4

1. The Sherman Act (1890);
2. The Clayton Act (1914);
3. Federal Trade Commission Act (1914);
4. Robinson-Patman Act (1936);

Question 5

What is the main goal of antitrust laws?

Answer 5

To promote economic competition.

Question 6

True or False: §1 of the Sherman Act bans contracts, combinations, or conspiracies in restraint of trade.

Answer 6

True.

The Sherman Act bans these activities.