3. When only one firm may reasonably conduct operations due to large barriers to entry or size of market share it is an example of what? 4. Which of the following prohibits the suppression of competition by making unlawful business practices? Administrative Procedure Act Sherman Act Federal Trade Commission Act None of the above 5. Which of the following prevents corporations from obtaining monopoly power through merger or acquisition purchase, of another firm? Section 7 of the Clayton Act Section 2(a) of the Sherman Act Section 2 of the Sherman Act Hart-Scott-Rodino Antitrust Improvements Act 6. Which of the following is NOT a type of merger covered by Section 7 of the Clayton Act? Horizontal merger between competitors Vertical integration between a supplier and one of its customers All are covered by Section 7 A conglomerate merger
7. Administrative law consists of which of the following? Substantive law Federal or state statute Procedural law All of the above 8. Shelly goes to the store to buy a TV, but she finds out that she can't purchase the TV without buying surround sound speakers and a DVD player. This is an example of what vertical restraint? Division of Markets Price Fixing Tying Arrangement Price Maintenance Agreement 9. What is the law governing the administrative agency rulemaking process? 10. Which term describes the act of when two firms at the same level of distribution make and agreement to restrain trade? 11. Which of the following is true of the Clayton Act? Causes suppression of competition by making unlawful business practices Is an amendment to the Sherman Act
For a violation of Section 2(a) of the Clayton Act to occur there must be seller discrimination towards at least five buyers. All of the above are true. 12. Which of the following is NOT true of the Sherman Anti-Trust Act? All violations of the Sherman Act result in violations of the Federal Trade Commission Act. The Supreme Court has established two important tests for determining if an agreement violates the Sherman Act. Congress enacted the Sherman Anti-Trust Act. All are true.
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