Multiple Choice
1. Antitrust law refers to:
a. the interpretation of antitrust statues by the courts
b. the antitrust statutes
c. the enforcement policies of administrative agencies
d. all of the other specific choices are correct
e. none of the other specific choices are correct
2. Which of the following led to the passage of federal antitrust legislation:
a. the growth of large corporations in the late 19th century
b. the decline of large corporations in the early 19th century
c. the growth of large corporations in the late 18th century
d. the Industrial Revolution
e. the Great Depression
3. The Clayton Act, the Sherman Act and the Federal Trade Commission Act are all examples of:
a. state antitrust legislation
b. federal antitrust legislation
c. federal employment legislation
d. state employment legislation
e. federal antidiscrimination legislation
4. The Clayton Act, the Sherman Act and the Federal Trade Commission Act are all examples of:
a. state antitrust legislation
b. federal antidiscrimination legislation
c. federal employment legislation
d. state employment legislation
e. none of the other choices are correct
5. Which of the following is not an antitrust statute:
a. the Clayton Act
b. the Federal Trade Commission Act
c. the Sherman Act
d. the Interstate Commerce Act
e. all of the other choices are antitrust statutes
6. Which of the following is an antitrust statute:
a. the Clayton Act
b. the Federal Trade Commission Act
c. the Sherman Act
d. the Federal Trade Commission Act and the Sherman Act
e. the Federal Trade Commission Act and the Sherman Act and the Clayton Act
7. The first antitrust statute enacted by Congress (in 1890) was:
a. the Federal Trade Commission Act
b. the Interstate Commerce Act
c. the Sherman Act
d. the Clayton Act
e. the Norris-LaGuardia Act
8. The first antitrust statute enacted by Congress (in 1890) was:
a. the Federal Trade Commission Act
b. the Interstate Commerce Act
c. the Norris-LaGuardia Act
d. the Clayton Act
e. none of the other choices
9. A key motive behind the Sherman Act was:
a. concern over the undue influence banks had over Congress
b. Congressional concern to limit competition faced by U.S. agricultural producers
c. concern that businesses were too influential in state legislatures
d. unpopularity of large businesses organizations
e. a desire to end import tariffs
10. A key motive behind the Sherman Act was:
a. concern over the undue influence banks had over Congress
b. concern about competition faced by U.S. agricultural producers
c. concern that businesses were too influential in state legislatures
d. a desire to end import tariffs
e. none of the other choices
11. Unpopularity of large businesses helped lead to passage of the in 1890.
a. Clayton Act
b. Business Regulation Act
c. Sherman Antitrust Act
d. Federal Trade Commission Act
e. Monopoly Act
12. Unpopularity of large businesses helped lead to passage of the in 1890.
a. Clayton Act
b. Business Regulation Act
c. Monopoly Act
d. Federal Trade Commission Act
e. none of the other choices are correct
13. The word “antitrust“ in the Sherman Antitrust Act comes from:
a. Rockefeller’s Standard Oil, which was organized as a trust
b. Rockefeller’s untrustworthy nature
c. the lack of trust people felt towards large businesses
d. the government’s position towards big businesses
e. the tendency for big businesses to engage in untrustworthy practices
14. The word “antitrust“ in the Sherman Antitrust Act comes from:
a. the tendency for big businesses to engage in untrustworthy practices
b. Rockefeller’s untrustworthy business practices
c. the lack of trust people felt towards large businesses
d. the government’s position towards big businesses
e. none of the other choices are correct
15. The sponsors of the Sherman Antitrust Act saw it as:
a. a way to reduce concerns that some industries were dominated by a few firms
b. a way to maintain industry dominance by a few efficient firms in each industry
c. a way to increase tax revenue from big businesses
d. a way to lessen the tax burden on small businesses
e. a way to increase private investment in big business
16. The sponsors of the Sherman Antitrust Act saw it as:
a. a way to increase private investment in big business
b. a way to maintain industry dominance by a few efficient firms in each industry
c. a way to increase tax revenue from big businesses
d. a way to lessen the tax burden on small businesses
e. none of the other choices are correct
17. The Sherman Act expressly holds illegal:
a. contracts and combinations in restraint of trade
b. discrimination in prices between different purchasers of commodities of like grade and quality
c. a business that raises its prices, where the effect may be to lessen competition
d. contracts and combinations in restraint of trade; discrimination in prices between different purchasers of
commodities of like grade and quality
e. contracts and combinations in restraint of trade; discrimination in prices between different purchasers of
commodities of like grade and quality; and a business that raises its prices, where the effect may be to lessen
competition
18. The Sherman Act expressly holds illegal:
a. a business that grows so large that it dominates a market
b. discrimination in prices between different purchasers of commodities of like grade and quality
c. a business that raises its prices, where the effect may be to lessen competition
d. all of the other specific choices
e. none of the other choices
19. Which of the following is a provision of the Sherman Act:
a. unfair methods of competition in or affecting commerce...are...unlawful
b. it shall be unlawful for any person engaged in commerce…to discriminate in prices between purchasers of
commodities of like grade and quality
c. no corporation...shall acquire...another corporation…where...the effect of such acquisition may be
substantially to lessen competition, or to tend to create a monopoly
d. every contract, combination...or conspiracy, in restraint of trade...is illegal
e. none of the other choices are a part of the Sherman Act
20. Which of the following is a provision of the Sherman Act:
a. unfair methods of competition in or affecting commerce...are...unlawful
b. it shall be unlawful for any person engaged in commerce…to discriminate in prices between purchasers of
commodities of like grade and quality
c. no corporation...shall acquire...another corporation…where...the effect of such acquisition may be
substantially to lessen competition, or to tend to create a monopoly
d. all of the other choices are parts of the Act
e. none of the other choices are parts of the Act
21. The Clayton Act was enacted in:
a. 1890
b. 1900
c. 1914
d. 1920
e. 1930
22. The Clayton Act was passed to:
a. deal with the problem of state interference in a federal issue
b. add restrictions beyond the Sherman Act
c. show Congressional dislike of free trade
d. deal with price fixing by the Standard Oil Trust
e. try to limit dangerous fluctuations in the stock market
23. The Clayton Act was passed to:
a. deal with the problem of state interference in a federal issue
b. try to limit dangerous fluctuations in the stock market
c. show Congressional dislike of free trade
d. deal with price fixing by the Standard Oil Trust
e. none of the other choices
24. The Clayton Act is intended to:
a. stop a business practice early in use to prevent a firm becoming a monopoly
b. deal with established monopolies that were expanding their influence
c. increase the ability of firms to develop monopolies
d. force higher taxes on monopolies
e. limit fluctuations in the stock market caused by monopolistic practices
25. The Clayton Act is intended to:
a. limit fluctuations in the stock market
b. deal with established monopolies
c. increase the ability of firms to develop monopolies
d. force higher taxes on monopolies
e. none of the other choices are correct
26. The Clayton Act restricts which of the following?
a. exclusive dealing arrangements
b. tying arrangements
c. mergers found to substantially lessen competition
d. interlocking directorates
e. all of the other choices
27. The Clayton Act does not clearly restrict which of the following?
a. unfair methods of competition
b. tying arrangements
c. mergers found to substantially lessen competition
d. interlocking directorates
e. all of the other choices are restricted
28. The Clayton Act holds illegal:
a. “overly vigorous” methods of competition
b. certain forms of price discrimination
c. tying sales that create a monopoly
d. certain forms of price discrimination and tying sales that create a monopoly
e. certain forms of price discrimination and tying sales that create a monopoly and “overly vigorous” methods of
competition
29. There is no exact definition of a monopoly, but in general a monopoly:
a. exists when one or a few firms dominate the sales of a product or service
b. one firm makes a better product than others in the same market
c. consumers prefer one firm over all others
d. one firm has more than 30% of the market share for a certain product
e. a firm does not have to pay any federal taxes
30. There is no exact definition of a monopoly, but in general a monopoly:
a. a firm does not have to pay any federal taxes
b. one firm makes a better product than others in the same market
c. consumers prefer one firm over all others
d. one firm has more than 30% of the market share for a certain product
e. none of the other choices are correct
31. Price discrimination in the sale of goods in restricted by the:
a. Sherman Antitrust Act
b. Price Discrimination Act
c. Robinson-Patman Act
d. Johnson Act
e. Fair Trade and Commerce Act
32. Tying sales is when:
a. the sale of one good is independent of another
b. the sale of one good is tied to the sale of another
c. the sale of one good is delayed by the production of another good
d. the sale of one good depends on the production of another good
e. none of the other choices are correct
33. Exclusive dealing is when:
a. a company is forbidden from dealing with other possible buyers or sellers
b. a company is forbidden from dealing with other possible buyers, but is free to work with other possible sellers
c. a company is forbidden from dealing with other possible sellers, but is free to work with other possible buyers
d. a company chooses to only use one supplier
e. a company only sells to one customer
34. The Clayton Act prevents a corporation from acquiring another corporation if:
a. the result is that it may substantially lessen competition
b. consumers are not informed of the acquisition
c. wholesalers who supply the competitors cannot continue to sell goods to separate buyers
d. the corporations are in identical lines of commerce
e. all of the other choices
35. The Clayton Act prevents a corporation from acquiring another corporation if:
a. the Department of Commerce does not approve
b. consumers are not informed of the acquisition
c. wholesalers who supply the competitors cannot continue to sell goods to separate buyers
d. the corporations are in identical lines of commerce
e. none of the other choices
36. If Coca-Cola were to want to merge with Pepsi, and this was held to “substantially lessen competition“ or “tend to
create a monopoly,” that would be a violation of:
a. Section 5 of the FTC Act
b. Section 2 of the Clayton Act
c. Section 3 of the Clayton Act
d. Section 7 of the Clayton Act
e. none of the other choices
37. If Coca-Cola were to want to merge with Pepsi, and this was held to “substantially lessen competition“ or “tend to
create a monopoly,” that would be a violation of:
a. the FTC Act
b. the Clayton Act
c. the Sherman Act
d. all of the other specific choices
e. none of the other choices
38. The Federal Trade Commission Act was enacted by Congress in:
a. 1890
b. 1900
c. 1914
d. 1945
e. 1960
39. Unfair methods of competition are held to be illegal under:
a. the Sherman Act
b. the Clayton Act
c. the Federal Trade Commission Act
d. the Antitrust Improvement Act
e. none of the other choices
40. Which law holds “unfair methods of competition“ to be illegal?
a. the Sherman Act
b. the Clayton Act
c. the Federal Trade Commission Act
d. the Antitrust Improvement Act
e. none of the other choices
41. Which of the following may be at least partly exempt from antitrust laws?
a. agricultural cooperatives
b. insurance firms regulated by the states
c. a group of domestic producers who band together to sell exports
d. all of the other specific choices
e. none of the other choices
42. Which of the following may be at least partly exempt from antitrust laws?
a. agricultural cooperatives
b. insurance firms regulated by the states
c. the medical profession
d. agricultural cooperatives and insurance firms regulated by the states
e. agricultural cooperatives and insurance firms regulated by the states and the medical profession
43. Which of the following organizations are at least partly exempt from the antitrust laws?
a. lobbyists
b. labor unions
c. insurance companies
d. all of the other specific choices
e. none of the other choices
44. Which of the following organizations are at least partly exempt from the antitrust laws?
a. lobbyists
b. U.S. auto producers
c. cell phone companies
d. all of the other specific choices
e. none of the other choices are exempt
45. The Export Trading Company Act:
a. allows sellers exporting goods to evade taxes
b. prevents sellers exporting goods from evading taxes
c. allows sellers of exports to receive limited antitrust immunity
d. prevents sellers of exports from engaging in any unfair practices
e. none of the other choices are correct
46. The insurance industry is exempted from federal antitrust laws by the:
a. Parker doctrine
b. state action doctrine
c. McCarran-Ferguson Act
d. Noerr-Pennington doctrine
e. National Insurance Act
47. Under the , lobbying to influence a legislature is not illegal, even if the purpose is anticompetitive.
a. Parker doctrine
b. state action doctrine
c. McCarran-Ferguson Act
d. Noerr-Pennington doctrine
e. National Insurance Act
48. Even if the purpose is anticompetitive, lobbying to influence a legislature is not illegal because:
a. the First Amendment gives persons the right to petition their government
b. the Fifth Amendment gives persons the right to petition their government
c. the right is protected by the McCarran-Ferguson Act
d. the Sherman Antitrust Act allows any kind of lobbying
e. none of the other choices are correct
49. Which of the following has the right to sue for violation of antitrust laws:
a. a private individual
b. a small business
c. a big business
d. all of the other specific choices are correct
e. none of the other specific choices are correct
50. The antitrust laws may be enforced by:
a. the Federal Trade Commission (FTC)
b. the Department of Justice
c. private parties
d. the FTC and Department of Justice
e. the FTC and Department of Justice and private parties
51. A company injured by an act that violates the Sherman Act may sue for:
a. punitive damages and actual money damages
b. actual money damages
c. damages incurred in the “ordinary course of business”
d. three times actual money damages
e. no damages; only the government can sue to enforce the law
52. A company injured by an act that violates the Sherman Act may sue for only:
a. punitive and actual money damages
b. actual money damages
c. damages incurred in the “ordinary course of business”
d. no damages; only the government can sue to enforce the law
e. none of the other choices
53. A private party that wins treble damages for a violation of the Sherman Act will receive:
a. twice their actual money damages
b. twice their actual money damages plus court costs and attorney fees
c. three times their actual money damages plus court costs and attorney fees
d. court fees and attorney fees
e. half their actual money damages plus court costs and attorney fees
54. Violations of the Sherman Act can result in:
a. criminal convictions with prison time
b. treble damages plus attorney fees paid by the loser
c. an injunction ordering a defendant to stop some activities
d. treble damages plus attorney fees paid by the loser and an injunction ordering a defendant to stop some
activities
e. treble damages plus attorney fees paid by the loser and an injunction ordering a defendant to stop some
activities and criminal convictions with prison time
55. Violations of Sections 1 and 2 of the Sherman Act by an individual can result in:
a. up to 10 years in prison
b. a fine of $1 million
c. a fine of $5 million
d. both a and b are correct
e. both a and c are correct
56. Violations of Sections 1 and 2 of the Sherman Act by a corporation can result in:
a. up to 50 years in prison
b. a fine of $1 million
c. a fine of $100 million
d. both a and b are correct
e. both a and c are correct
57. Which antitrust statute carries the most severe penalties?
a. Federal Trade Commission Act
b. Clayton Act
c. Sherman Act
d. Interstate Commerce Act
e. the penalties may be the same for all
58. An action to stop business activities that appears to violate the Sherman or Clayton Act can be brought:
a. by a private plaintiff who has been harmed
b. by the government
c. by the Antitrust Task Force
d. by a private plaintiff who has been harmed or by the government
e. by a private plaintiff who has been harmed or by the government or by the Antitrust Task Force
59. The FTC has the authority to do which of the following:
a. investigate suspect business dealings
b. hold hearings instead of trials
c. issue administrative orders that require parties to stop certain business acts
d. all of the other specific choices are correct
e. none of the other specific choices are correct