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1. Covenants not to compete are illegal per se.
a. True
b. False
2. Covenants not to compete cannot be used in agreements for the sale of businesses.
a. True
b. False
3. Section 1 of the Sherman Act covers monopolization.
a. True
b. False
4. The Sherman Act does not apply unless sales across state lines are involved.
a. True
b. False
5. The Clayton Act provides for treble damage recovery for all antitrust violations.
a. True
b. False
6. The Sherman Act imposes fines and imprisonment for violations.
a. True
b. False
7. Competition restraints in commercial leases are generally valid.
a. True
b. False
8. The Robinson-Patman Act deals with price discrimination.
a. True
b. False
9. The Celler-Kefauver Act regulates asset acquisitions.
a. True
b. False
10. The Antitrust Improvements Act gave the Justice Department broader investigative authority.
a. True
b. False
11. The interstate commerce jurisdictional standard for the Sherman Act requires proof of transactions across state
lines.
a. True
b. False
12. Together, Christie’s and Sotheby’s controlled about 75% of the international auction market.
a. True
b. False
13. The Clayton Act does not carry criminal penalties.
a. True
b. False
14. Equitable remedies are not available under the Sherman Act.
a. True
b. False
15. Only Clayton Act violations carry treble damages.
a. True
b. False
16. Generally, joint ventures among competitors in international business are per se violations of the Sherman Act.
a. True
b. False
17. Monopoly power is the power to control prices or exclude competition.
a. True
b. False
18. Cross-elasticity of demand is irrelevant in determining the product market.
a. True
b. False
19. Predatory pricing is pricing below actual cost.
a. True
b. False
20. Predatory pricing is illegal.
a. True
b. False
21. Setting minimum prices is a per se violation of the Sherman Act.
a. True
b. False
22. An agreement among competitors for elimination of bidding is a violation of federal antitrust laws.
a. True
b. False
23. Setting maximum prices is a per se violation of the Sherman Act.
a. True
b. False
24. Limitations on bidding are permitted in professional bids such as in architecture and service contracts.
a. True
b. False
25. Division of markets is a per se violation.
a. True
b. False
26. Group boycotts are per se violations.
a. True
b. False
27. Joint ventures among competitors are per se violations.
a. True
b. False
28. The Noerr-Pennington doctrine is an antitrust exception that originates in the First Amendment.
a. True
b. False
29. The failing company doctrine is an exception to horizontal merger restrictions.
a. True
b. False
30. The Celler-Kefauver Act is part of the Clayton Act.
a. True
b. False
31. Private parties can bring suit under the Federal Trade Commission Act.
a. True
b. False
32. Predatory pricing is not specifically covered in any of the antitrust laws.
a. True
b. False
33. Monopolization is a vertical restraint of trade.
a. True
b. False
34. Resale price maintenance is a vertical restraint of trade.
a. True
b. False
35. Resale price maintenance is a per se violation of the Sherman Act.
a. True
b. False
36. Conscious parallelism negates market forces.
a. True
b. False
37. Price control consignments are treated as forms of resale price maintenance.
a. True
b. False
38. Fair trade laws are still in effect in many states.
a. True
b. False
39. Exclusive distributorships are per se antitrust violations.
a. True
b. False
40. Customer and territorial restrictions are per se antitrust violations.
a. True
b. False
41. Tying arrangements are per se antitrust violations.
a. True
b. False
42. The tying product is the desired product.
a. True
b. False
43. A defense to tying is quality control.
a. True
b. False
44. Sole outlets are not antitrust violations when there is interbrand competition.
a. True
b. False
45. Exclusive dealing contracts are per se violations.
a. True
b. False
46. The Sotheby’s - Christie’s case illustrates, among other things, that companies will sacrifice its employees to save
the company.
a. True
b. False
47. Generic brands can carry a lesser price than brand-name products even though identical in composition without
experiencing price discrimination difficulties.
a. True
b. False
48. Meeting the competition is a defense to price discrimination.
a. True
b. False
49. The legality of vertical mergers is determined by the relevant geographic and product markets.
a. True
b. False
50. A vertical merger that prevents market entry is illegal.
a. True
b. False
51. There is no price discrimination when lower prices are charged for generic label cans of the same product.
a. True
b. False
52. A tying arrangement requires the seller to have market power in the tying product.
a. True
b. False
53. A tying arrangement requires the seller to have market power in the tied product.
a. True
b. False
54. A covenant in the sale of a dry cleaning business that prohibits the seller from operating a dry cleaning business
anywhere in that state is too restrictive to be enforced.
a. True
b. False
55. Requiring a franchisee to use trademark napkins is a per se antitrust violation.
a. True
b. False
56. An agreement among competitors to control the supply of their products to the market violates the Sherman Act.
a. True
b. False
57. A price cap imposed by a distributor on retail outlets is a violation of federal antitrust laws.
a. True
b. False
58. A covenant not to compete in a contract for the sale of a business protects the goodwill of the existing business for
the buyer.
a. True
b. False
59. Corporate officers are not liable for violations of the Sherman Act.
a. True
b. False
60. Refusals to deal are a per se violation of the Sherman Act.
a. True
b. False
61. A boycott against subcontractors who are cheaper because of safety concerns is still an illegal group boycott.
a. True
b. False
62. Interlocking directorates tend to be efficient, effective, ethical, and legal.
a. True
b. False
63. Meeting the competition is a defense to price discrimination.
a. True
b. False
64. Quantity discounts violate the Robinson-Patman Act.
a. True
b. False
65. There is hardly any cross-elasticity in the gasoline market.
a. True
b. False
66. The Antitrust Modernization Commission has proposed material changes in the antitrust laws to accommodate e-
commerce market changes.
a. True
b. False
67. The judicial approach to antitrust cases is one of weighing benefits to competition.
a. True
b. False
68. A monopsony is the same thing as a monopoly.
a. True
b. False
69. The ability of a competitor to control the prices of a supplier in a market is a monopsony.
a. True
b. False
70. A monopsony is illegal per se.
a. True
b. False
71. The market definition controls whether there is market power.
a. True
b. False
