ANSWERS-CH49 - competition, etc.). If Fairto-Middlin shows...

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CHAPTER 49 ANTITRUST: THE SHERMAN ACT ANSWERS TO CHAPTER 49 True-False Multiple Choice 1. T 2. T 3. T 4. T 5. F 6. F 7. F 8. F 9. T 10. F 11. d 12. b 13. d 14. a 15. a 16. d 17. b 18. d 19. b 20. c Short Essay 21. The “rule of reason” judges behavior not classified as per se unlawful. This requires an inquiry into the actual competitive effects of the actions by defendant, and includes consideration of justifications that the defendant may raise. The court balances the anticompetitive effect of the defendant’s actions against the positive effect on competition or other social benefits. 22. The court will give the agreement rule of reason treatment because it amounts to a vertical restraint on distribution. The effect of rule of reason treatment is that Fairto- Middlin will be given an opportunity to show that there were justifications for the agreement (such as economic efficiency, potential for enhancing interbrand
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Unformatted text preview: competition, etc.). If Fairto-Middlin shows that the justifications outweigh the harm to competition caused by the agreement, Fairto-Middlin will not be held to have violated Sherman Act Section 1. 23. The direct injury rule is the biggest obstacle to Attired's winning the case. It is an obstacle she cannot clear. Attired does not have standing to bring an antitrust action against the concrete block manufacturers, because she did not suffer direct injury as a result of their unlawful acts. Her injury (having to pay a higher price to the construction contractor) was only an indirect injury. The parties suffering direct injury were the building supply stores that purchased the blocks at the artificially high price. Answers to Student Study Guide and Workbook Questions 82...
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