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Exam 38: Antitrust Law and Promoting Competition

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Question 1

True/False

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Antitrust legislation is based on a desire to limit economic competition.

A) True
B) False

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False

Question 2

Multiple Choice

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An antitrust action is brought against Carrier Freight Company, alleging that a certain act constitutes the offense of attempted monopolization. To qualify, the act must

A) be likely to succeed.
B) be unlikely to succeed.
C) succeed.
D) fail.

E) All of the above
F) A) and C)

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Question 3

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The federal agencies that enforce the antitrust laws include

When applying the rule of reason to an activity that allegedly violates the antitrust laws, a court will not consider

A business, but not an individual person, can be deemed liable for monopolizing or attempting to monopolize trade or commerce in violation of the antitrust laws.

Even if a firm possesses monopoly power and engaged in anticompetitive conduct, it cannot be inferred that the firm acted with the intent to monopolize.

Baby Goods Inc. buys Child Shops Inc. in an attempt to gain monopoly power. Remedies that a court might impose in a suit against Baby Goods for a violation of the antitrust laws include

Any agreement that results in enhanced market power violates the antitrust laws.

Restraints of trade are laws that regulate economic competition.

Say It Inc. and Text Talk Inc. are social media companies. They compete for employees, users, and advertisers. The two firms work together on security threats, however. With respect to antitrust law, this cooperation is most likely

The Medical Device Makers Association does not include all manufacturers of medical and surgical instruments. The association refuses to deal with any parties who do not carry the products of its members. This is

The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they

With respect to antitrust violations, the Federal Trade Commission does not enforce

Requiring users of a social media site to agree to certain terms and conditions to use the site is most likely an antitrust violation.

American Oil Company joins a cartel that includes foreign participants to set the price of oil. The cartel has a substantial effect on U.S. commerce. With respect to the foreign participants, under U.S. antitrust laws, this is most likely

Every threat of monopolization is condemned as a violation of antitrust law even if the alleged offender does not possess some degree of market power.

Oil Industries Inc. and Petro Corporation are competing refineries situated on the Gulf coast. The two firms cooperate to obtain federal funds to build a levee that could protect their facilities from rising sea levels. With respect to antitrust law, this effort is

Road Tires Inc. conditions the sale of its products to Service Stores on the buyer's agreement to buy Road's tire-repair kits. Under the Clayton Act, this deal is

Section 2 of the Sherman Act essentially condemns the act of monopolizing, not the possession of monopoly power.

Price-fixing agreements are considered violations of the Sherman Act because of their real and potential adverse effects on open and free competition.