Chapter 11 Flashcards
All of the following are forms of restraint of trade that company might use to reduce competition except:
Monopolies.
Oversupply.
Price-fixing.
Mergers.
Oversupply
What is a Business Trust?
Business Trust is a trust agreement that allows businesses to maintain profits as beneficiaries but legal ownership and management of the company’s property is maintained through the power of trustees.
Distinguish between naked restraint and ancillary restraint.
Naked restraint occurs as contracts promote a general restraint of competition, while ancillary restraint occurs as the restriction is limited in time and geography.
What was the first antitrust law enacted?
The Sherman Act
What was the original purpose of antitrust legislation?
The original purpose of antitrust legislation, to foster competition that results in lower prices, more products, and more equal distribution of wealth between producers remains relevant today.
What recourse does the FTC have if an individual or company engages in an unfair trade practice?
Litigation
Each state has its own Antitrust law.
True
Which of the following is not prohibited by the Sherman Act?
Temporary limited restraints.
Temporary restraints.
Naked restraints.
Ancillary restraints.
Temporary limited restraints.
Which of the following are possible penalties for violation of the Sherman Act?
Up to $100 million for corporations and individuals.
Up to $100 million for individuals.
Up to $100 millions for corporations.
None of these are correct.
Up to $100 millions for corporations.
Which of the following are considered illegal by the Clayton Act?
Price discrimination.
Exclusive dealing contracts.
Corporate mergers.
All of the above.
All of the above.
The following are exempt from antitrust laws:
Small businesses.
Coops.
Labor unions.
Agriculture groups even if they engage in restraint of trade.
Labor unions
When was the Federal Trade Commission established?
1914
The following are bureaus of the Federal Trade Commission except:
Bureau of Unfair Trade Practices.
Bureau of Consumer Protection.
Bureau of Competition.
Bureau Economics.
Bureau of Unfair Trade Practices.
What is the mission of the Bureau of Competition?
Focus on Antitrust laws and by doing so, supports lower prices and choices for the consumer.
The Clayton Act is…
is a civil statute rather than a criminal statute, meaning that it carries civil penalties rather than prison sentences. It primarily focuses on unfair mergers and acquisitions
