Ch22-TB-BLTE-8e

Ch22-TB-BLTE-8e - Chapter 22 Promoting Competition in a...

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Unformatted text preview: Chapter 22 Promoting Competition in a Global Context TRUE/FALSE QUESTIONS 1. Using market power to drive competitors out of business is illegal. ANSWER: T PAGE: 674 TYPE: + MISC: AACSB Analytic Skill Level: AICPA Legal 2. Market power is a firms power to affect the market price of its product. ANSWER: T PAGE: 674 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 3. The Sherman Act prohibits individual anticompetitive behavior that pro- duces or is intended to produce monopoly power. ANSWER: T PAGE: 674 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 4. The Sherman Act applies only to acts that have a significant impact on interstate commerce. ANSWER: T PAGE: 674 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 5. The states enacted the first antitrust laws in the United States. ANSWER: T PAGE: 675 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 81 82 TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS 6. A restraint of trade is any agreement between firms that has the effect of reducing competition in the marketplace. ANSWER: T PAGE: 675 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal CHAPTER 22: PROMOTING COMPETITION IN A GLOBAL CONTEXT 83 7. The basic purpose of antitrust law is to prevent competition. ANSWER: F PAGE: 675 TYPE: + MISC: AACSB Reflective Skill Level: AICPA Critical Thinking 8. An agreement that fosters competition is an unreasonable restraint of trade. ANSWER: F PAGE: 675 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 9. Under the rule of reason, a court will consider the purpose of an agreement between competitors. ANSWER: T PAGE: 675 TYPE: + MISC: AACSB Analytic Skill Level: AICPA Legal 10. Any agreement that artificially fixes prices is an unreasonable restraint of trade. ANSWER: T PAGE: 676 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 11. A horizontal restraint is an anticompetitive agreement between firms op- erating at different levels of a market. ANSWER: F PAGE: 676 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 12. A price fixing agreement is analyzed under the rule of reason. ANSWER: F PAGE: 676 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 13. A price fixing agreement is analyzed under the rule of reason. ANSWER: F PAGE: 676 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 14. A group boycott cannot violate Section 1 of the Sherman Act. 84 TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS ANSWER: F PAGE: 677 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal CHAPTER 22: PROMOTING COMPETITION IN A GLOBAL CONTEXT 85 15. A geographical market division between rival firms is not a violation of antitrust laws....
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This note was uploaded on 11/03/2009 for the course ARE 18 taught by Professor Maxey during the Spring '08 term at UC Davis.

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Ch22-TB-BLTE-8e - Chapter 22 Promoting Competition in a...

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