Q&A Hero

Q: The law prohibits the sale of worthless securities.

Q: It is legal to sell a covered security during the prefiling period.

Q: The information contained in a prospectus is completely different from that contained in a registration statement.

Q: A prospectus must conform to the statutory requirements.

Q: The Federal Trade Commission prevents wrongful actions by the use of cease and desist orders.

Q: Securities laws are designed to give potential investors sufficient information so that they can make intelligent investment decisions based on factual information.

Q: The Securities and Exchange Commission has both quasi-legislative and quasi-judicial powers.

Q: The Securities Act of 1933 is a disclosure law with respect to the initial sale of securities to the public.

Q: In the context of providing untrue or misleading information to potential investors, proof of negligence will support an injunction.

Q: Tying arrangements do not violate the Sherman Act.

Q: Any property owned in violation of Section 1 of the Sherman Act that is being transported from one state to another is subject to a seizure by and forfeiture to the United States.

Q: It is just as illegal to receive the benefit of price discrimination as it is to give a lower price to one or two buyers.

Q: The Robinson-Patman amendment extends only to transactions in intrastate commerce.

Q: Some monopolies are lawful.

Q: Section 2 of the Sherman Act does not regulate attempts to monopolize any part of interstate or foreign commerce.

Q: Crimes under the Sherman Act are felonies.

Q: The burden of proof to enjoin an activity is greater than the burden of proof to convict someone of a crime.

Q: Concerted activities are illegal as they are always harmful to the society.

Q: Resale price maintenance is legal only if there is no coercion or pressure other than the announced policy and its implementation.

Q: Conduct directed at price stabilization is per se anticompetitive.

Q: Territorial arrangements within channels of distribution are analyzed under the rule of reason.

Q: The mere exchange of price information among competitors is likely to constitute a Sherman Act violation.

Q: Attempting to determine the price of services through the use of relative-value scales is a legal method for controlling prices.

Q: Horizontal price fixing is not illegal per se under the Sherman Act.

Q: It now appears the Supreme Court is comfortable limiting the per se illegality analysis to vertical agreements among competitors.

Q: According to the per se rule, price fixing is illegal only when the parties to the price fixing agreement have control of a market.

Q: Maximum-price agreements are just as illegal as minimum-price agreements.

Q: Agreements falling within the per se category have such a pernicious effect on competition that elaborate inquiry as to the precise harm they may cause or a business excuse for them is unnecessary.

Q: Courts develop the distinction between rule of reason and per se illegality on a case-by-case basis.

Q: Sherman Act cases need not satisfy an interstate commerce element to be constitutionally valid.

Q: It is legal for small competitors to engage in price fixing to allow them to compete with larger competitors.

Q: To analyze potential violations of the Sherman Act, the test of reasonableness asks whether challenged contracts or acts are unreasonably restrictive of competitive conditions.

Q: If an activity is deemed as illegal per se, proof of the activity is proof of a violation and proof that it is in restraint of trade.

Q: The Clayton Act is general in its terms and does not specifically set forth every act that would constitute a violation of the law.

Q: The Federal Trade Commission is an independent administrative agency charged with eliminating competition through the enforcement of the Sherman Act.

Q: Section 1 of the Sherman Act prohibits contracts, combinations, and conspiracies in restraint of trade or commerce.

Q: What is the purpose of the industry guides issued by the Federal Trade Commission?

Q: The goal of the Sherman Act is to eliminate competition.

Q: Only the federal government plays a role in the enforcement of antitrust laws.

Q: Private parties may bring criminal suits seeking monetary damages or injunction as a means of enforcing antitrust laws.

Q: The Federal Trade Commission enforces the Clayton Act.

Q: What are the exceptions recognized by the Robinson-Patman amendment?

Q: What is the purpose of the Robinson-Patman amendment?

Q: What are franchise contracts?

Q: Briefly describe the four different types of mergers.

Q: What are the three major questions that the Federal Trade Commission asks to check if there is deception or antitrust violation involved?

Q: What is the primary function of the Federal Trade Commission?

Q: What led to the enactment of the Clayton Act?

Q: What led to the enactment of the Robinson-Patman amendment to the Clayton Act?

Q: What can be avoided if a defendant in a criminal antitrust suit enters a plea of nolo contendere?

Q: What is the Noerr-Pennington doctrine? What is the Parker v. Baker doctrine based on?

Q: Briefly explain the legal sanction recognized by the Sherman Act as amended by the Clayton Act that allows violations to be enjoined by the courts.

Q: Name some of the businesses and activities that are exempt from the Sherman Act.

Q: When is the existence of a monopoly lawful?

Q: Briefly explain the concept of predatory conduct in trade.

Q: Briefly explain the provision of triple damages under Section 4 of the Clayton Act.

Q: What is the criminal punishment for crimes under the Sherman Act?

Q: The cable operators in North Bedford agreed to divide the market among themselves with each operator assigned a specific region in the city. Briefly discuss the legality of this agreement in the context of the Sherman Act.

Q: What are the basic provisions of the National Cooperative Production Amendment Act?

Q: What are concerted activities?

Q: What are the two categories of analysis used to analyze potential violations of the Sherman Act? How do they work?

Q: What must a plaintiff prove in a case concerning an attempt to monopolize?

Q: What is horizontal price fixing? What are some of the unacceptable defenses for horizontal price fixing?

Q: How is it possible for a manufacturer to legally control the resale price of its products?

Q: What is the purpose of the Sherman Act and what does it cover?

Q: Briefly explain the rule of reason.

Q: What is per se illegality?

Q: Which of the following statements is true of the antitrust enforcement in the European Union (EU)? A. Fines for violating EU antitrust law are much less than those in the United States. B. The EU may impose fines for business practices that do not violate U.S. law. C. The EU can impose a maximum fine of 1 billion euros. D. The European Commission does not have the power to change business practices related to activities that do not violate U.S. law. E. The decisions of the European Commission must mirror that of the U.S. Government. .

Q: The primary function of the Federal Trade Commission is to A. prevent illegal business practices. B. award punitive damages for violations of the Sherman Act. C. award punitive damages for violations of the Clayton Act. D. prevent the formation of conglomerate mergers. E. facilitate the use of exclusive dealing contracts for trade agreements.

Q: The ______ made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Act. A. Celler-Kefauver amendment B. Noerr-Pennington amendment C. Herfindahl-Hirschman amendment D. Robinson-Patman amendment E. Wheeler-Lea amendment

Q: What led to the enactment of the Sherman Act in 1890?

Q: The ______, a measure of market concentration, squares the market share of each firm in a market and adds them together for a final number. A. Noerr-Pennington Index B. Producer Price Index C. Consumer Price Index D. Herfindahl-Hirschman Index E. Big Mac Index

Q: A(n) ______ is one in which the businesses involved neither compete nor are related as customer and supplier in any given line of commerce. A. arbitration merger B. horizontal pricing arrangement C. vertical pricing arrangement D. conglomerate merger E. vertical merger

Q: Fields Tech School decides to expand and open a new campus in another state. Rather than acquiring land and building new buildings, the school board decides to merge with an existing school, Fennelstate, which has similar programs in the other state. Fennelstate is a small commuter school with the majority of the students from the same state. The merger between Fields Tech School and Fennelstate is best described as a ______. A. vertical merger B. geographic extension merger C. product extension merger D. horizontal merger E. freeze-out merger

Q: If there are four firms in a market, each with a 25 percent share, the final Herfindahl-Hirschman Index is ______. A. 4000 points B. 2000 points C. 25 points D. 4 points E. 2500 points

Q: Joshua owns orange groves. He enters into a contract with the local food processing plant, Gram Corp., which stipulates that he will sell oranges only to Gram. In this scenario, the contract between Joshua and Gram Corp. is known as a(n) ______. A. instalment contract B. exclusive dealing contract C. reciprocal dealing contract D. tying contract E. franchise contract

Q: In a(n) ______, a buyer agrees to purchase all of its needs of a given contract from a seller during a certain period of time. A. franchise contract B. installment contract C. reciprocal dealing contract D. tying contract E. requirements contract

Q: One party offers to buy the others goods but only if the second party buys other goods from the first party. This is known as a(n) ______. A. franchise arrangement B. exclusive dealing arrangement C. reciprocal dealing arrangement D. tying arrangement E. requirements arrangement

Q: Mobi Telecom Inc. and Broadcom Inc. are manufactures of cell phones competing in the same markets. If Broadcom decides to acquire and merge with Mobi, the merger is most likely to be called a ______. A. vertical merger B. horizontal merger C. product extension merger D. geographic extension merger E. freeze-out merger

Q: Bosh, an American corporation, acquires and merges with KnightD, a Belgian corporation, in a multibillion-dollar merger. Bosh, prior to the merger, sold beer only in the United States. After the merger, Bosh sells beer to most of the EU countries. The merger between Bosh and KnightD is an example of a ______. A. vertical merger B. horizontal merger C. freeze-out merger D. geographic extension merger E. product extension merger