Q&A Hero

Q: The ______ that permits price differentials based on differences in the cost of manufacture, sale, or delivery of commodities is recognized by the Robinson-Patman amendment. A. good-faith meeting-of-competition defense B. mobile defense C. cost justification defense D. changing conditions defense E. position defense

Q: The Robinson-Patman amendment gives the Federal Trade Commission jurisdiction and authority to A. control production amounts. B. regulate the retail price of products. C. regulate quantity discounts. D. control market share. E. enforce trade bans.

Q: A ______ is one in which a product is sold or leased only on the condition that a buyer or lessee purchase a different product or service from a seller or lessor. A. executory contract B. exclusive dealing contract C. reciprocal dealing arrangement D. tying contract E. licensing agreement

Q: In ______, a form of tying arrangement, a seller compels a buyer or lessee to take a complete product range from the seller. A. reciprocal agreement B. med-arb forcing C. rescission contract D. restitution agreement E. full-line forcing

Q: Which of the following statements is true of the good-faith meeting-of-competition defense as permitted by the Robinson-Patman amendment? A. It applies to a situation when sellers select their own customers in good faith and not in restraint of trade. B. It applies to a situation when there are price differentials based on differences in the cost of manufacture, sale, or delivery of commodities. C. It applies to a situation that involves the setting up of barriers to market entry around a product, brand, product line, market, or market segment. D. It applies to a situation when a seller in good faith meets the equally low price of a competitor. E. It applies to a situation when price changes are made in response to changing conditions such as sales in good faith in discontinuance of business in the goods concerned.

Q: To avoid the impact of a guilty plea or a conviction on a pending civil antitrust suit, a criminally accused defendant is most likely to plead ______. A. nolo contendere B. stare decisis C. voir dire D. res judicata E. obiter dicta

Q: Which of the following statements is true of the Clayton Act? A. The original Clayton Act contained no sanction for forfeiture of property. B. The original Clayton Act did not allow individuals to obtain injunctive relief. C. The Clayton Act permits price fixing. D. The Clayton Act has prohibited a plaintiffs claim to triple damages. E. The Clayton Act allows companies to extend their monopoly power.

Q: In 1976, the Hart-Scott-Rodino Antitrust Improvements Act was passed to provide for ______. A. premerger notification B. reciprocal dealing C. merger extension rights D. post-merger bailout E. full-line forcing

Q: The ______ attempted to eliminate the advantage that a large buyer could secure over a small buyer solely because of the larger buyers quantity-purchasing ability. A. monopoly leveraging B. buy and sell amendment C. Wheeler-Lea amendment D. Parker v. Brown doctrine E. Robinson-Patman amendment

Q: The ______ makes it a crime for a seller to sell at lower prices in one geographic area than elsewhere in the United States to eliminate competition or a competitor. A. Robinson-Patman amendment to the Clayton Act B. Federal Trade Commission Act C. Free Exercise Act D. Wheeler-Lea amendment to the Clayton Act E. Gramm-Rudman-Hollings Act

Q: Sifco Inc., a tire manufacturing company, stipulates that Rambox Corp. should buy its entire line of Roadgrip tires. Sifco has significant market power in a particular variety of Roadgrip tires for which no substitutes are available in the market. It uses this power to its advantage and does not agree to let Rambox buy less than the entire line of Roadgrip tires. The sales contract between Sifco and Rambox is an example of a ______. A. tying arrangement B. reciprocal dealing arrangement C. rescission contract D. premerger arrangement E. justification contract

Q: Which of the following is an exemption from the Sherman Act that extends to concerted efforts to lobby government officials? A. Noerr-Pennington doctrine B. quick look doctrine C. state action doctrine D. per se illegality doctrine E. doctrine of inherency

Q: When a state acts in its sovereign capacity, ______. A. it is immune from federal antitrust scrutiny B. it can legalize bribery C. it can force defendants to civil suits to enter a plea of nolo contendere D. it is liable for triple damages E. it has the right to forgive corporations for violations of the Clayton Act

Q: Parker v. Brown doctrine is based on the reasoning that A. individuals cannot be fined for violations of the Sherman Act. B. concerted efforts to lobby government officials are not anticompetitive. C. the Sherman Act does not apply to state governments. D. not all independent actions by a manufacturer is a per se violation of the Sherman Act. E. only unreasonable attempts to monopolize a market were covered by the Sherman Act.

Q: In a 1943 case known as Parker v. Brown, the Supreme Court created a ______ to the Sherman Act. A. limited liability exemption B. double tax exemption C. general action exemption D. merger monopoly exemption E. state action exemption

Q: Which of the following statements is true about the sanctions of the Sherman Act? A. Violations may be subject to criminal fines or imprisonment, but not both. B. Injured parties may collect a maximum of double damages. C. Violations of the Sherman Act may be enjoined by the courts. D. Its sanctions are only civil punishments and not criminal punishments. E. Crimes under the Sherman Act are misdemeanors.

Q: An individual found guilty under the Sherman Act may be fined up to ______. A. $1 million B. $5 million C. $100 million D. $50 million E. $30 million

Q: A corporation found guilty under the Sherman Act may be fined up to ______ for each offense. A. $10 million B. $1 million C. $100 million D. $500 million E. $300 million

Q: Which of the following statements is true of the triple damages awarded to the injured parties under the Sherman Act? A. Triple damages apply only to individuals, and not corporations or larger institutions. B. The government cannot directly or indirectly receive triple damages. C. Triple damages are only meant to compensate a plaintiff for actual injury. D. Only injured members of the general public can enforce the law. E. Legislation allows both federal and state governments to file a suit for triple damages.

Q: Which of the following statements is true of monopoly power? A. Mere possession of monopoly power violates Section 1 of the Sherman Act. B. If monopoly power is thrust upon a firm, there is a violation Section 2 of the Sherman Act. C. Monopoly power which exists because of a patent or franchise violates the Clayton Act. D. If a firm engages in conduct that has the effect of extending its monopoly power, it does not violate the Sherman Act. E. Proof of monopoly power alone is insufficient to qualify as a violation of the Sherman Act.

Q: ______ takes place when a seller sells at unreasonably low prices to drive out a competitor. A. Transfer pricing B. Translational pricing C. Congestion pricing D. Predatory pricing E. Psychological pricing

Q: When competitors attempt to share some activities or join together in the performance of a function, they are performing ______. A. derivative activities B. appellate activities C. preemptive activities D. arbitrated activities E. concerted activities

Q: Which of the following statements is true of concerted activities? A. They are illegal as they are never beneficial to the society. B. They are only legal if a firm has monopoly power. C. They reduce competition. D. They are only legal when firms have a vertical territorial agreement. E. They are performed by state governments to restrict monopolization.

Q: In ______, the price of goods and services is limited to levels that tend to discourage new entry to markets. A. congestion pricing B. exemption pricing C. limit pricing D. per se pricing E. variable pricing

Q: For a sellers pricing to be considered predatory conduct, there must be proof that A. the seller was selling the product at a price above the cost price. B. the prices were intended to drive competitors out of business followed by the wrongdoer recouping the initial losses. C. the prices were higher than those of all competitors within the same product group. D. the buyers were willing to buy a product at the sellers prices despite having a wide range of options. E. a buyer had other options in the same product line available in different price ranges.

Q: Game designers Troy and Jeff have designed a new computer game system. This system is manufactured and sold by their company, GameTech Corp. The game system they devised uses new technology that they created and their system far exceeds the capabilities of any current gaming systems. This gives them a monopoly in the gaming market. Which of the following statements is true in this scenario? A. GameTech is guilty of engaging in predatory conduct. B. GameTech has monopoly power that violates the Sherman Act. C. GameTech has monopoly power that violates the Clayton Act but not the Sherman Act. D. GameTech has monopoly power that does not violate the Sherman Act. E. GameTech is guilty of monopoly that violates both the Clayton and Sherman Act.

Q: A ______ is one between a manufacturer and a dealer, which assigns the dealer an exclusive territory, and the manufacturer agrees not to sell to other dealers in that territory in exchange for an agreement by the dealer that it will not operate outside the area assigned. A. vertical territorial agreement B. conglomerate territorial agreement C. congeneric territorial agreement D. tying territorial agreement E. per se territorial agreement

Q: Which of the following is a violation of the Sherman Act? A. market extension mergers between companies from different fields B. conglomerate mergers between small companies C. price fixing agreements between large companies D. gaining monopoly through the use of franchising agreements E. gaining monopoly due to the use of patent technology

Q: Attempts by manufacturers to control the ultimate retail prices are known as ______. A. transfer price fixing B. vertical price fixing C. lateral price fixing D. congestion price fixing E. rational price fixing

Q: Under the Colgate doctrine, the Supreme Court recognizes that A. individuals are allowed to engage in horizontal price fixing. B. a franchisor can require that franchisees purchase all of its equipment and inventory. C. resale price maintenance is illegal. D. individuals are allowed to engage in horizontal price fixing for provision of services. E. manufacturers can announce their prices and refuse to deal with those who fail to comply.

Q: For the purpose of giving each an exclusive territory, competing businesses may enter into a ______. A. bilateral territorial agreement B. vertical territorial agreement C. horizontal territorial agreement D. competitive territorial agreement E. congeneric territorial agreement

Q: The University of Kay and Kaytech University are bitter cross-town rivals. They compete in everything from sports to academics. Due to decreasing enrollment, the schools make an agreement to give all incoming students free tuition for one semester before raising the existing rates the following semester. This action is most likely to be considered a A. horizontal agreement in violation of the Sherman Act. B. vertical agreement in violation of the Sherman Act. C. tying agreement in violation of the Clayton Act. D. reciprocal dealing agreement violating the Clayton Act. E. licensing agreement violating the Clayton Act.

Q: The president of a bottling company agreed with a competitor to stop discounts to retailers, which earned him a jail sentence. Which of the following is indicated in this scenario? A. variable pricing B. product bundling C. mixed-leader bundling D. predatory conduct E. horizontal price fixing

Q: Vertical price fixing is also called ______. A. resale price maintenance B. predatory maintenance C. linear price fixing D. express price fixing E. gold fixing

Q: The use of ethical standards to avoid restrictions on price fixing is A. a violation of the Sherman Act. B. illegal per se under the Clayton Act. C. legal as long as relative-value scales are used. D. legal for services. E. only allowed for healthcare products.

Q: Which of the following statements is true of the Sherman Act? A. The Sherman Act applies only to the sale of goods. B. Price fixing in the service sector is permitted under the Sherman Act. C. Maximum-price agreements are illegal, while minimum-price agreements are not illegal. D. The Sherman Act covers services, including those performed by learned professions. E. An action is not considered to be price fixing if the prices fixed are fair or reasonable.

Q: The Federal Trade Commission issues industry guides, which must be followed by all industries.

Q: Trusts are a legal arrangement in which a fiduciary A. forfeits his or her title to property. B. benefits from the profits of a company. C. acts as a bailor to another. D. provides financial support to another. E. holds legal title to property for benefit of another.

Q: Which of the following statements is true of the role of state governments in enforcement of antitrust laws? A. State governments have made all forms of monopolies illegal to create a fair trade environment. B. State governments have prohibited private parties from bringing civil suits seeking injunction as a means of enforcing antitrust laws. C. A state high court may allow a company to fix its price as long as the price is low. D. A state attorney general may bring civil suits for damages under the Sherman Act. E. State legislators have banned the use of trust agreements.

Q: In 1914, Congress, recognizing that the Sherman Act needed to be more specific, enacted the ______ as an amendment to the Sherman Act. A. Clayton Act B. Fair Credit Billing Act C. Securities Act D. Truth in Lending Act E. Robinson-Patman Act

Q: The Department of Justice alone has the power to bring criminal proceedings, but it shares its civil enforcement powers with the ______. A. Federal Trade Commission B. Treasury Department C. Department of Revenue and Taxation D. U.S. Supreme Court E. Department of Labor

Q: The ______, announced by the Supreme Court in Standard Oil Co. v. United States, holds that contracts or conspiracies in restraint of trade are illegal only if they constituted undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize are covered by the Sherman Act. A. rule of per se illegality B. Parker v. Brown doctrine C. rule of reason D. duty-to-deal doctrine E. Ker-Frisbie doctrine

Q: What are the criticisms of an administrative process relating to personnel?

Q: The Federal Trade Commission has broad, sweeping powers and a mandate to determine what methods, acts, or practices in commerce constitute unfair competition.

Q: List the criticisms of an administrative process relating to procedures.

Q: What are the criticisms of an administrative process relating to substance?

Q: What are the costs to a business that are associated with the regulatory process?

Q: What are the two constitutional limitations to the delegation of quasi-legislative authority to administrative agencies?

Q: Explain the difference between the two doctrines that guide courts in the judicial review of administrative agency adjudications.

Q: What must an administrative agency do for the courts to exercise their function of limited review?

Q: Regulation is a form of taxation. Explain.

Q: What is the doctrine of primary jurisdiction?

Q: According to the U.S. Supreme Court, why should broad meaning be given to the concept of standing to sue?

Q: How does the executive branch of a government influence the administrative process?

Q: What are the functions of administrative law judges?

Q: Explain the responsibilities of a secretary in administrative agencies.

Q: Explain the issue of reviewability during the judicial review of an administrative agencys decision.

Q: Explain why delegation of quasi-legislative authority to administrative agencies should be limited.

Q: What is immunity?

Q: Explain advising as a function of administrative agencies.

Q: What is a cease and desist order?

Q: What is a consent order?

Q: Explain the significance of the general counsel in an administrative agency.

Q: What is the role of the executive director in an administrative agency?

Q: How do administrative agencies function to provide protection to the public?

Q: Regulation is often a substitute for competition. Explain with an example.

Q: How do administrative agencies function to provide services?

Q: What are the basic functions of administrative agencies?

Q: Administrative agencies are created to provide expertise. Explain.

Q: Which of the following is a criticism of the administrative process relating specifically to procedures? A. The administrative process is devoid of paperwork and meetings. B. There is too much reinforcement to follow up on actions to ensure compliance. C. The Peter Principle creates a huge problem in determining the flow of procedures across all levels in the agencies. D. The rules and regulations of the procedures are written in complex legal language, which laypeople cannot understand. E. The decision-making process of organizations is speedy thus creating suspicion among the efficacy of those decisions.

Q: The administrative process can give rise to too much discretionary power, often unstructured, and unchecked. This is a criticism of the administrative process relating to ______. A. personnel B. procedures C. substances D. management E. manpower

Q: Which of the following is an issue of administrative agencies that relates to personnel? A. The volume of rules adopted by agencies is beyond the ability of the business community to keep up with and comply with. B. There are so many agencies making regulations directed at the business community that the regulations often overlap and are in conflict. C. The administrative process is overwhelmed with paperwork and with meetings. D. The administrative process finds it difficult to discharge unsatisfactory employees. E. There is often a lack of enforcement procedures to follow up on actions taken to ensure compliance.

Q: Which of the following issues of administrative agencies relates to the substantive outcome of agencies rule-making and adjudicating authority? A. It is very difficult to discharge unsatisfactory employees. B. The reward system usually does not make a significant distinction between excellent, mediocre, and poor performances. C. The administrative process is overwhelmed with paperwork and with meetings. D. Enforcement of some laws varies over time. E. There is often a lack of enforcement procedures to follow up on actions taken to ensure compliance.

Q: What are administrative agencies? What are the two types of administrative agencies?

Q: Which of the following statements is true of primary jurisdiction? A. It applies when a claim must go in the first instance to an administrative agency. B. It ensures uniformity and consistency in dealing with matters entrusted to an administrative body. C. It is inapplicable in cases whenever enforcement of a claim requires the resolution of issues that have been placed within the special competence of an administrative body. D. It is a court-created rule that limits when courts can review administrative decisions. E. It is revoked in cases where a claim is originally filed in the courts.

Q: Which of the following statements is true of the judicial review of administrative agencys adjudications? A. Administrative agencies develop their own rules of procedure unless mandated otherwise by an act of the legislature. B. Courts and legislative bodies are better than administrative agencies to decide on the rules of procedure and methods of inquiry based on their familiarity with the industry. C. In reviewing the procedures of administrative agencies, courts have absolute authority to substitute their judgment or their own procedures for those of the agency. D. Procedures set by the administrative agencies are far more formal than judicial procedures. E. Administrative agencies are completely restricted by the strict rules of evidence used by courts.

Q: Which of the following statements is true of the doctrine of exhaustion of remedies? A. It applies when a claim is originally filed in the courts. B. It comes into play whenever enforcement of a claim requires the resolution of issues that were placed within the special competence of an administrative body. C. It is an absolute principle, and courts usually deny parties the right to litigate prior to exhausting administrating remedies. D. It increases the premature interruption of the administrative process. E. It allows an agency to discover and correct its own errors, and thus it helps to dispense with any reason for judicial review.

Q: The doctrine of ______ is a court-created rule that limits when courts can review administrative decisions. A. estoppel B. exhaustion of remedies C. lapse D. primary jurisdiction E. precedent

Q: Which of the following doctrines applies when a claim is originally filed in the courts? A. estoppel B. the doctrine of exhaustion of remedies C. the doctrine of lapse D. primary jurisdiction E. the doctrine of precedent

Q: Any party seeking the judicial review of any administrative agencys decision must be able to prove: A. enabling legislation. B. immunity. C. standing to sue. D. novation. E. primary jurisdiction.