1 are horizontal price fixing and vertical price

This preview shows page 11 - 13 out of 14 pages.

1. Are horizontal price fixing and vertical price fixing per se violations of the Sherman Act? (a) Yes/Yes (b) Yes/No (c) No/Yes (d) No/No Answer : B.
2. If Sterling Steel refused to buy concrete from Carat Concrete unless CC bought steel from SS would that refusal to deal be a violation of antitrust laws?
3. Reserve Supply Corp., a cooperative of 379 lumber dealers, charged that Owens-Corning Fiberglass Corp. violated the Robinson-Patman Act by selling at lower prices to Reserve’s competitors. It presented proof that these prices had harmed competition. Owens-Corning admitted that it had granted lower prices to a number of Reserve’s competitors to meet, but not beat, the prices of other insulation manufacturers. Is Owens-Corning in violation of the Robinson-Patman Act?
8 Bryan Gruley, “Little Town Becomes First Municipality Sued By U.S. for Antitrust,” Wall Street Journal, June 3, 1996, p. l .
12 Unit 7 Government Regulation
4. Oftentimes, if one airline lowers its prices on a particular route, so will all of the others. What is this type of activity called and is it a violation of the antitrust laws? (a) Refusal to deal/ it is a rule of reason violation (b) Conscious parallelism/it is not a violation by itself (c) Price discrimination/it is a per se violation (d) Resale price maintenance/ it is a rule of reason violation Answer : B.
5. A horizontal merger is illegal if:
Essay Questions 1. Samantha manufactures 60 percent of the titanium screws sold in the United States. Does she have a monopoly on this product? What would you need to know to answer this question?
2. Texaco sold gasoline in Spokane, Washington to independent retailers and also to Gulf Oil, which operated its own filling stations and also sold to retailers. Texaco charged a substantially lower price to Gulf than to the independent retailers. These retailers sued Texaco, alleging that this price structure violated the Robinson Patman Act. At trial, the retailers presented evidence that they could not compete against Gulf. Texaco did not present evidence that the different prices it charged reflected the costs of serving these two sets of customers.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture