Chapter 27 Quiz Flashcards
A suit is filed against DrillBits Corporation, alleging that the firm committed the offense of monopolization. To determine whether DrillBits has monopoly power requires looking at
a. the price of a share of DrillBits’ stock.
b. DrillBits’ size alone.
c. DrillBits’ production methods and marketing techniques.
d. the relevant market.
d
Agreements that are deemed per se violations of Section 1 of the Sherman Act include all of the following except
a. a market division.
b. a price-fixing agreement.
c. a trade association.
d. a group boycott.
c
By contract, Oil Shale Corporation forbids Petro, Inc., a wholesale buyer of Oil Shale’s products, from purchasing the products of its competitors. This exclusive-dealing contract is NOT allowed
a.
if its effect is to substantially lessen competition.
b. unless there is no effect on a competitor. c. under any circumstances. d. if its effect is to cause a competitor a loss of any business.
a
Consumers Retail Corporation may be engaging in conduct that violates the Sherman Act. To bring an action against the firm requires that its conduct have a significant impact on
a. interstate commerce.
b. intrastate commerce.
c. Internet commerce.
d. international commerce.
a
Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is
a. subject to analysis under the rule of reason.
b. a per se violation of antitrust law.
c. a legal restraint of trade.
d. a deal that inherently neither restrains trade nor harms competition.
a
Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Foods Marketplace, Inc., a retailer. This is
a. subject to analysis under the rule of reason.
b. “an unfair or deceptive act or practice.”
c. a per se violation.
d. not a violation.
a
Gearbox, Inc., a manufacturer of vehicle parts, refuses to sell to Motor Repair & Replace, Inc., a national vehicle service firm. Gearbox convinces Cam & Cylinder Company, a competitor, to do the same. This is
a. a market division.
b. a tying arrangement.
c. a group boycott.
d. an exclusive-dealing contract.
c
Pump Makers Inc. makes pumps for fire trucks and conditions shipments of its products to Quality Motors Corporation—a maker of fire trucks—on Quality’s agreement to buy additional pumps only from Pump Makers. This is
a. a group boycott.
b. an exclusive-dealing contract.
c. a tying arrangement.
d. price discrimination.
b
Ranchland Supplies Corporation believes that Stock & Equipment Corporation engages in anticompetitive behavior in an attempt to drive Ranchland, its chief competitor, out of the market. Antitrust laws can be enforced against Stock & Equipment by
a. none of the choices.
b. Ranchland.
c. Congress.
d. only a disinterested third party.
b
Smart Tablets, Inc., requires all distributors of its products to sell them at a specified minimum price. This is a violation of antitrust law
a. if the anticompetitive effects outweigh the competitive benefits.
b. under any circumstances.
c. if the competitive benefits outweigh the anticompetitive effects.
d. under no circumstances.
a
