Chapter 16 - CHAPTER 16TRADE PRACTICES: ANTITRUST LAWS...

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CHAPTER 16—TRADE PRACTICES: ANTITRUST LAWS TRUE/FALSE 1. Covenants not to compete are illegal per se. ANS: F NAT: AACSB: Analytic TOP: covenants 2. Covenants not to compete cannot be used in agreements for the sale of businesses. ANS: F NAT: AACSB: Analytic TOP: covenants 3. Section 1 of the Sherman Act covers monopolization. ANS: F NAT: AACSB: Analytic TOP: Sherman Act 4. The Sherman Act does not apply unless sales across state lines are involved. ANS: F NAT: AACSB: Analytic TOP: Sherman Act 5. The Clayton Act provides for treble damage recovery for all antitrust violations. ANS: T NAT: AACSB: Analytic TOP: Clayton Act 6. The Sherman Act imposes fines and imprisonment for violations. ANS: T NAT: AACSB: Analytic TOP: Sherman Act 7. The Federal Trade Commission Act carries criminal penalties. ANS: F NAT: AACSB: Analytic TOP: FTC Act 8. The Robinson-Patman Act deals with price discrimination. ANS: T NAT: AACSB: Analytic TOP: Robinson-Patman Act 9. The Celler-Kefauver Act regulates asset acquisitions. ANS: T NAT: AACSB: Analytic TOP: Celler-Kefauver Act 10. The Antitrust Improvements Act gave the Justice Department broader investigative authority. ANS: T NAT: AACSB: Analytic TOP: Antitrust Improvements Act 11. The Interstate Commerce jurisdictional standard for the Sherman Act requires proof of transactions across state lines. ANS: F NAT: AACSB: Analytic TOP: interstate commerce 12. The Robinson-Patman Act interstate commerce test is the same as the Commerce Clause test for the U.S. Constitution.
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ANS: F NAT: AACSB: Analytic TOP: Robinson-Patman Act 13. The Clayton Act does not carry criminal penalties. ANS: T NAT: AACSB: Analytic TOP: Clayton Act 14. Equitable remedies are not available under the Sherman Act. ANS: F NAT: AACSB: Analytic TOP: Sherman Act 15. Only Clayton Act violations carry treble damages. ANS: F NAT: AACSB: Analytic TOP: Clayton Act 16. Generally, joint ventures among competitors in international business are per se violations of the Sher- man Act. ANS: F NAT: AACSB: Analytic TOP: international 17. Monopoly power is the power to control prices or exclude competition. ANS: T NAT: AACSB: Analytic TOP: monopolize 18. Cross-elasticity of demand is irrelevant in determining the product market. ANS: F NAT: AACSB: Analytic TOP: cross-elasticity 19. Predatory pricing is pricing below actual cost. ANS: T NAT: AACSB: Analytic TOP: predatory price 20. Predatory pricing is illegal. ANS: F NAT: AACSB: Analytic TOP: predatory price 21. Setting minimum prices is a per se violation of the Sherman Act. ANS: F NAT: AACSB: Analytic TOP: Sherman Act 22. An agreement among competitors for elimination of bidding is a violation of federal antitrust laws. ANS: T NAT: AACSB: Analytic TOP: price fixing 23. Setting maximum prices is a per se violation of the Sherman Act. ANS: T
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Chapter 16 - CHAPTER 16TRADE PRACTICES: ANTITRUST LAWS...

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