Ch. 21 Test

Question 1

Which of the following is NOT a requirement for an antitrust violation to exist?
A.  Creation of a monopoly
B.  Unreasonable restraint on trade
C.  Result of a conspiracy
D.  Impact on competition

Answer 1

A. Creation of a monopoly

Question 2

In the real estate industry, price fixing issues come up most often with:
A.  commission rates
B.  listing prices of homes
C.  sales prices of homes
D.  mortgage interest rates

Answer 2

A. commission rates

Question 3

A court that conducts an economic analysis to determine whether an activity's negative impact on competition outweighs its positive effects is applying the:
A.  quick look test
B.  per se rule
C.  rule of reason test
D.  unilateral action rule

Answer 3

C. rule of reason test

Question 4

Which of the following is a negative effect that would be a factor in determining whether an activity is an unreasonable restraint on trade?

A. An increase in innovation
B. Lower prices
C. A per se violation
D. Deterioration of services

Answer 4

D. Deterioration of services

Question 5

12. A party that suffers losses because of antitrust violations can sue the offender for how much of the actual damages suffered?

A. One-half the amount of actual damages
B. Three times the amount of actual damages
C. Five times the amount of actual damages
D. Up to ten million dollars

Answer 5

B. Three times the amount of actual damages

Question 6

An example of illegal market allocation would be:

A. an individual broker assigning different farms to her affiliated licensees
B. two competing brokers agreeing to stay out of each other’s geographic areas
C. a brokerage in which one agent specializes in selling luxury homes
D. a broker focusing on sales of commercial property

Answer 6

B. two competing brokers agreeing to stay out of each other’s geographic areas

Question 7

A party that suffers losses because of antitrust violations can sue the offender for how much of the actual damages suffered?
A. One-half the amount of actual damages
B. Three times the amount of actual damages
C. Five times the amount of actual damages
D. Up to ten million dollars

Answer 7

B. Three times the amount of actual damages