61) Which of the following is an example of a horizontal restraint of trade?
A) resale price maintenance
B) division of markets
C) unilateral refusal to deal
D) conscious parallelism
62) Which of the following is an example of a vertical restraint of trade?
A) group boycott
B) price fixing
C) resale price maintenance
D) division of markets
63) A per se violation of Section 1 of the Sherman Act that occurs when a party at one level of
distribution enters into an agreement with a party at another level to adhere to a price schedule
that either sets or stabilizes prices is referred to as ________.
A) group boycotts
B) horizontal price fixing
C) resale price maintenance
D) nonprice vertical restraints
64) Restraints of trade that are unlawful under Section 1 of the Sherman Act if their
anticompetitive effects outweigh their procompetitive effects are known as ________.
A) nonprice vertical restraints
B) group boycotts
C) division of markets
D) resale price maintenance measures
65) The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is
examined by applying the ________.
A) Colgate doctrine
B) Noerr doctrine
C) per se rule
D) rule of reason
66) ________ is seen when an independent choice is made by one party not to deal with another
party.
A) Nonprice vertical restraint
B) Monopoly to deal
C) Unilateral refusal to deal
D) Conscious parallelism
67) Which of the following is true of the Colgate doctrine?
A) It is not a violation of Section 1 of the Sherman Act.
B) It is an example of a horizontal restraint of trade.
C) It is a per se violation of Section 1 of the Sherman Act
D) It is a rule of reason violation of Section 1 of the Sherman Act.
68) Conscious parallelism is seen when ________.
A) parties at different levels enter into an agreement to adhere to a price schedule that stabilizes
prices
B) one party makes an independent choice not to deal with another
C) two or more firms act the same but no concerted action is shown
D) a party’s anticompetitive effects outweigh their procompetitive effects
69) ________ is an antitrust principle which says that two or more persons can petition the
executive, legislative, or judicial branch of the government or administrative agencies to enact
laws or take other action without violating antitrust laws.
A) Noerr doctrine
B) Colgate doctrine
C) Nolo contendere
D) Small company doctrine
70) Which of the following is an exception to the Noerr doctrine?
A) a petition that is filed unilaterally by one party
B) an identical petition filed independently by two parties without concerted action
C) a petition that is filed in good-faith
D) a petition that is unlikely to succeed on its merits
71) A relevant market is characterized by the presence of ________.
A) unique goods and services
B) reasonably interchangeable goods and services
C) highly differentiated goods and services
D) pure monopoly of the defendant’s goods and products
72) A monopoly power is characterized by ________.
A) a market share of below 20 percent
B) an inability to control prices in the market
C) an ability to exclude all competition from other sellers
D) a presence of multiple substitute goods at competing prices
73) Which of the following is a defense to a charge of monopoly?
A) the Noerr doctrine
B) natural monopoly
C) conscious parallelism
D) predatory pricing
74) A merger between two or more companies that compete in the same business and
geographical market is known as ________.
A) horizontal merger
B) vertical merger
C) market extension merger
D) conglomerate merger
75) What is a vertical merger?
A) a merger between firms in totally unrelated businesses
B) a merger that integrates the operations of a supplier and a customer
C) a merger between two companies in similar fields whose sales do not overlap
D) a merger between two or more companies that compete in the same business and
geographical market
76) What is a backward vertical merger?
A) a vertical merger between two or more companies that compete in the same business and
geographical market
B) a vertical merger between two companies in similar fields whose sales do not overlap
C) a vertical merger in which a supplier acquires a customer
D) a vertical merger in which a customer acquires a supplier
77) A merger between two regional fruit-sellers that do not sell fruit in the same geographical
area is an example of a ________.
A) market extension merger
B) conglomerate merger
C) horizontal merger
D) vertical merger
78) ________ are mergers between firms in totally unrelated businesses.
A) Market extension mergers
B) Conglomerate mergers
C) Horizontal mergers
D) Forward vertical mergers
79) Which of the following is considered to be a primary defense against Section 7 of the
Clayton Act?
A) Noerr doctrine
B) Colgate doctrine
C) the failing company doctrine
D) Conscious parallelism doctrine
80) ________ is an act that requires certain firms to notify the Federal Trade Commission and
the Justice Department in advance of a proposed merger and comply with a thirty-day waiting
period before the merger is approved.
A) Celler-Kefauver Act
B) Hart-Scott-Rodino Antitrust Improvement Act
C) Robinson-Patman Act
D) Sherman Act
81) ________ is a restraint of trade in which a seller refuses to sell one product to a customer
unless the customer agrees to purchase a second product from the seller.
A) Tying arrangement
B) Predatory pricing
C) Price fixing
D) Group boycott
82) ________ is a defense in a Section 2(a) action which provides that a seller’s price
discrimination is not unlawful if the price differential is due to “differences in the cost of
manufacture, sale, or delivery” of the product.
A) Natural monopoly defense
B) Meeting the competition defense
C) Changing conditions defense
D) Cost justification defense
83) Which of the following businesses and activities enjoys a statutory exemption from antitrust
laws?
A) airlines
B) professional baseball
C) agricultural cooperatives
D) all professional sports and games
84) Which of the following businesses and activities enjoys an implied exemption from antitrust
laws?
A) railroads
B) agricultural cooperatives
C) airlines
D) labor unions
85) Give an account of the Noerr doctrine.
86) How is a relevant market identified by Section 2 of the Sherman Act?
87) What is a premerger notification? Explain the process outlined by the Hart-Scott-Rodino
Antitrust Improvement Act to execute a merger.
88) What are the three statutory defenses under the Robinson-Patman Act for price
discrimination?
89) Give an account of state antitrust laws.
90) Federal ________ law comprises several major statutes that prohibit certain anticompetitive
and monopolistic practices.
91) The ________ is a federal statute, enacted in 1914, that regulates mergers and prohibits
certain exclusive dealing arrangements.
92) Under ________ of the Clayton Act, any person who suffers antitrust injury in his or her
business or property can bring a private civil action against the offenders.
93) The ________ rule is a rule that is applicable to restraints of trade considered inherently
anticompetitive. Once this determination is made about a restraint of trade, the court will not
permit any defenses or justifications to save it.
94) Contracts, combinations, and conspiracies in restraint of trade are outlawed by Section 1 of
the ________ Act.
95) Price fixing is a ________ violation of Section 1 of the Sherman Act.
96) ________ occurs when a party at one level of distribution enters into an agreement with a
party at another level to adhere to a price schedule that either sets or stabilizes prices.
97) The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is
examined by using the ________.
98) The ________ doctrine states that a firm can unilaterally choose not to deal with another
party without being liable under Section 1 of the Sherman Act.
99) If two competing manufacturers of a similar product both separately reach an independent
decision not to deal with a retailer, ________ is said to have occurred, which is not a violation of
Section 1 of the Sherman Act.
100) The ________ doctrine holds that two or more persons may petition the executive,
legislative, or judicial branch of the government or administrative agencies to enact laws or to
take other action without violating antitrust laws.
101) The power of a firm to control prices or exclude competition, measured by the market share
the defendant possesses in the relevant market is known as ________.
102) Predatory pricing, which is used to drive out competition, is in violation of the ________.
103) ________ is a defense to a charge of monopolizing which recognizes that a small market
can support only one competitor, such as a small-town newspaper.
104) The ________ Act, enacted in 1950, widened the scope of Section 7 of the Clayton Act to
include asset acquisitions.
105) Mergers between firms in unrelated businesses are known as ________ mergers.
106) ________ are vertical trade restraints that involve the seller’s refusal to sell a product, the
tying item, to a customer unless the customer purchases a second product.
107) Section 2 of the Clayton Act, which is commonly referred to as the ________ Act, prohibits
price discrimination in the sale of goods if certain requirements are met.
108) The exemption of railroads from antitrust laws is an example of a(n) ________ exemption.