Mann_BLRB 9_TB_Ch43

Business Law and the Regulation of Business

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Chapter 43—Antitrust TRUE/FALSE 1. The main goal of antitrust regulation is to prevent competitive behavior among firms. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 2. Failure to comply with Section 1, but not Section 2, of the Sherman Act is a criminal violation. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 3. The Sherman Act prohibits contracts that unreasonably restrain trade. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 4. The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 5. The states’ settlement with Microsoft, reached after an ordered breakup of Microsoft for violating the Sherman Antitrust Act and affirmed by the D.C. Circuit Court of Appeals in 2004, required Microsoft to reveal previously confidential programming interfaces that its products rely on to link to Windows code. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 6. It is per se illegal under the Sherman Act for sellers to agree to a maximum price, but not a minimum price. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 7. All tying arrangements are per se illegal. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 8. The courts have interpreted the Sherman Act as prohibiting all monopolies. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 9. Monopoly power is tested by determining how big the corporation is in terms of total assets. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 10. Section 2 of the Sherman Act prohibits contracts, combinations, and conspiracies that restrain trade. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 11. Section 1 of the Sherman Act outlaws monopolies and attempts to monopolize. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic
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12. Characterizing a type of restraint as per se illegal significantly affects the prosecution of an antitrust suit. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 13. The Robinson-Patman Act adds to the Clayton Act merger provisions. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 14. All price discrimination is illegal under the Robinson-Patman Act. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 15. Any violation of Section 2 of the Sherman Act constituting a conspiracy to monopolize would also constitute a violation of Section 1. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 16. If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman Act. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 17. The Federal Trade Commission may issue a cease and desist order having the effect of an injunction. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 18. The Clayton Act weakened the Sherman Act by eliminating illegal acts that had previously been pro- hibited. ANS: F
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Mann_BLRB 9_TB_Ch43 - Chapter 43-Antitrust TRUE/FALSE 1....

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