Chapter 25 Flashcards
The high-water mark of antitrust enforcement was marked by the ____ case.
ALCOA
The Clayton Act prohibited
interlocking directorates
The “rule of reason” originated in the
Standard Oil case of 1911.
The antitrust case that ended the use of the “rule of reason” by the Supreme Court was the ________ case.
ALCOA
The conventional merger is the ____ merger.
horizontal
Which statement is true?
Since 1980, there has been a marked increase in the number of large mergers.
A merger between Bank of America and Citibank would be a ____ merger.
horizontil
A key passage of the ____ Act stated that “every contract, combination in form of trust or otherwise, in restraint of commerce among the several states, or with foreign nations, is hereby declared illegal.”
Sherman
The trusts won only the ____ case.
steel
The Supreme Court’s “rule of reason”
was applied from 1911 to 1945.
The Clayton Act prohibited each of the following except
trusts
There has been an unmistakable steady trend toward bigness in business since
the late-1990s.
The most common corporate crime is ______________.
taking advantage of insider knowledge for ill-gained profits
The Microsoft case ended with ______________.
a compromise settlement between Microsoft and the federal government
A merger between Hertz Rent-a-Car and Budget Rent-a Car would be a ______ merger.
horizontal
In the 1960s, about 80% of the mergers were of the __________ variety.
conglomerate
The decision to bring suit in an antitrust case is usually made by
the Department of Justice.
Each of the following companies lost major cases heard by the Supreme Court except
DuPont
In the ALCOA Case of 1945, the courts held that:
the mere possession of monopoly power is a violation of the antitrust laws.
In the 1980s
the airlines and trucking were subjected to less regulation.
In general we could say that the decade of the 1980s was a time of
less regulation.
A merger of a firm and its supplier is called
a vertical merger.
A horizontal merger takes place when
a firm acquires a competitor.
A vertical merger takes place when
a firm integrates its production backward toward its source of supply or forward in its marketing chain.
A conglomerate merger takes place when
a firm buys another firm unrelated to the original firm’s business.
