REG 21 - Other Federal Laws and Regulation 2 - Union and Emploee relations/Antitrust/Patents Flashcards
Kroll, an employee of Acorn, Inc., is injured in the course of employment while operating a fork-lift vehicle manufactured and sold to Acorn by Trell Corp. The fork-lift was defectively designed by Trell.
Under the state’s mandatory worker’s compensation statute, Kroll will be successful in
I. Obtaining worker’s compensation benefits.
II. A negligence action against Acorn.
I. yes, II. no
Worker’s compensation is a “no-fault” system. This means that a plaintiff does not have to prove that anyone caused his/her injury, but only has to show that (s)he was actually injured on the job.
To win a negligence action, however, a plaintiff must show that the defendant acted carelessly. Since Acorn was not at fault and did not act carelessly, Kroll will lose a negligence suit against them.
T/F: Ed’s employer, EDF Corp., carries workers’ compensation insurance. Ed was injured on the job. Ed had been very careful, but was injured due to the carelessness of his manager. Ed’s injuries were serious and he wished to sue EDF for damages in a tort action for negligence.
Ed may waive workers’ comp benefits and sue EDF.
False.
Ed will not recover if the manager was in compliance with the workers’ compensation system requirements.
T/F: To obtain a search warrant, OSHA must prove “probable cause” to a judge.
False.
Which of the following employee benefits is (are) exempt from the provisions of the National Labor Relations Act (NLRA)?
Sick pay.
Vacation pay.
No, no
Neither is exempt. The NLRA prohibits discrimination against workers on the basis of union membership. Workers are guaranteed the right to strike and bargain collectively based on unfair policies related to sick pay or vacation pay.
Tilly’s father was a union man, as was her grandfather. Tilly wishes to belong to a union when she graduates from college. Which of the following groups of workers should Tilly avoid because they are unlikely to be unionized?
A. Independent contractors.
B. Managerial and supervisory employees.
C. A and B.
D. None of the above.
C. Both A and B are unlikely to be unionized.
Tony wishes to bring a union to his workplace. What percentage of eligible employees must sign authorization cards to require the employer to hold an election as to whether a union should be certified? A. 10% B. 30% C. 50% D. None of the above.
B. The NLRA sets the threshold at 30%
T/F: During the course of a union election, an employer communicated to the workers: “We were planning to give everyone an extra week of paid vacation next year, but that might not happen now.” This is probably an unfair labor practice.
True
T/F: The vice presidents at ABC bank felt that they had nice titles, but were underpaid and they sought to join the clerk’s union. They may do so.
False.
Which of the following are defenses to a Robinson-Patman Act price-discrimination charge?
A. Buyer A is located closer to the defendant’s plant than Buyer B and, therefore, causes lower shipping charges.
B. The defendant charged Buyer A $20,000, but then learned that Buyer B had an offer at $15,000 from a competitor and lowered its offer to B to match that offer.
C. The defendant charged Buyer A $20,000, but then received a price break from a supplier for key materials and was able to reduce its offering price to subsequent buyers to $18,000.
D. All of the above.
D. Because A, B, and C are all accurate examples of valid defenses to Robinson-Patman price-discrimination charges, this is the best answer.
A small computer software firm wishes to sue Microsoft for monopolizing its market. What must the firm establish in order to win the case?
A. Microsoft enjoys overwhelming market power.
B. Microsoft intends to monopolize the market.
C. A and B.
D. None of the above.
C. A and B set forth the two elements of a Sherman Act Section 2 monopolization claim. A “monopoly” is defined as “A firm having such an overwhelming degree of market power that it is able to control prices or exclude competition.”
Which of the following can enforce the anti-trust laws?
A. The Department of Justice’s anti-trust division.
B. The SEC’s anti-trust bureau.
C. The Federal Trade Commission (FTC).
D. A and C.
D.
Which of the following is (are) true?
A. Vertical mergers are more likely than horizontal mergers to decrease competition and draw anti-trust scrutiny.
B. Attempts to monopolize are illegal, even if the defendant has no realistic hope of success.
C. Resale price maintenance is judged by a “rule-of-reason” standard.
D. All of the above.
C. Like most other anti-competitive practices these days, RPM is judged now by a “rule-of-reason” standard. The idea of finding practices “illegal per se” is more and more rare.
T/F: A company can accidentally violate the anti-monopoly provisions of the Sherman Act.
False.
The Sherman Act (1890) – Section 2 prohibits “monopolization, attempts to monopolize, and conspiracies to monopolize.” It looks at the conduct of a single economic actor.
T/F: Otter Tail Power Co. generated and transmitted electricity. It refused to sell or deliver over its transmission lines the power purchased by consumers from Otter’s competitors. This is likely part of an “attempt to monopolize” violative of Section 2 of the Sherman Act if Otter Tail has substantial market power.
True
T/F: If one competitor with 4% market share acquires another competitor with 3% market share, a violation of Section 7 of the Clayton Act has probably occurred.
False.
7% of market share in total.
