Antitrust Law and Unfair Trade Practices

Question 1

Sherman Antitrust, Section 1

Answer 1

an after the fact move when monopoly is formed
forbids agreements between two or more parties which harm competition, horizontal

Question 2

Sherman Antitrust, Section 2

Answer 2

prevents the act of monopolization, vertical

Question 3

what has to happen if a administration wants to create a rule

Answer 3

create notice in federal register

Question 4

Clayton Anti trust act 1914

Answer 4

gives the government the power to prevent mergers
regulates mergers and exclusive dealing
Gives plaintiffs treble damages
when Sherman, Clayton, Roinson packman act are broken

Question 5

Anti Competitive Behavior

Answer 5

-price fixing

Question 6

Treble Damages

Answer 6

3x the Damages

Question 7

Per se violation

Answer 7

so anti competitive that the company will lose and the question is what will the damages be
looks at competitive

Question 8

horizontal

Answer 8

two or more at the same level,
only per se

Question 9

vertical

Answer 9

per se or rule of reason

Question 10

price fixing

Answer 10

-competitors agree to set a universal higher price
-ALWAYS per se violation
-limiting the quantity of product going out or agree not to sell below a certain price

Question 11

division of markets

Answer 11

-ALWAYS per se violation
-two or more competitors break up the market together

Question 12

group boycott (refusal to deal)

Answer 12

• two or more competitors decide not to sell to someone
  -per se violation

Question 13

vertical restraint of trade

Answer 13

-two parties at different levels

Question 14

Resale price Maintenance Agreement

Answer 14

Vertical Price Fixing
setting the minimum or maximum resale price
violation of rule of reason

Question 15

nonprice vertical restraints

Answer 15

a restraint of trade that is unlawful under section 1 of sherman act if anticompetitive effects outweigh their procompetitive effects

Question 16

Unilateral Refusal to Deal

Answer 16

does not violate until multiple parties refuse to deal

Question 17

monopolization of the relevant market

Answer 17

possesses monopoly power
willful act of monopolizing
predatory pricing- lowers the product pricing below what they pay for it to undercut competitors
attempts to monopolize

Question 18

relevant market

Answer 18

includes substitute products or services

Question 19

Examining the Lawfulness of a Merger

Answer 19

define the relevant line of commerce
identify the section of the country affected by the merger
what is the probability of the substantial lessening of the competition or is likely to create a monopoly in the market

Question 20

defenses to monopolization

Answer 20

innocent acquisition of a monopoly
natural monopoly

Question 21

market extension merger

Answer 21

merger between two companies in similar fields whose sales do not overlap

Question 22

defenses of section 7 actions

Question 23

illegal tying

Answer 23

you can purchase this product if you also purchase this other product

Question 24

price discrimination

Answer 24

selling the same product at different prices

Question 25

challenging someone with direct price discrimination

Answer 25

prove: commodities of like, grade and quality sales to two or more purchasers at the same time plaintiff suffered injury

Question 26

indirect price discrimination

Question 27

defenses to price discrimination

Question 28

intellectual property

Answer 28

intangible and creative things