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Q:
The FTC does not prohibit pre-recorded telemarketing sales calls.
Q:
(p. 978, 979) Geoffrey is a car dealer in Austin, Texas. His financial dealings with customers come directly under the jurisdiction of the Consumer Financial Protection Bureau.
Q:
Describe defenses to direct price discrimination under the Robinson-Patman Act.
Q:
Yardqueen, Inc., a manufacturer of lawn mowers, sells a lawnmower model both to retail chain Streetmart and to standalone store Lawnworks in the town of Bayside. Yardqueen sells the model to Streetmart at five dollars less per unit than it sells to Lawnworks as Streetmart buys more mowers. Streetmart's retail prices are therefore lower than those of Lawnworks. Based on the above information, which of the following is true?
A. Yardqueen violates Section 2(a) of the Robinson-Patman Act.
B. Yardqueen violates the provisions of the Parker Doctrine.
C. Yardqueen is in violation of the Noerr Doctrine.
D. Yardqueen violates Section 3 of the Clayton Act.
Q:
What is price fixing?
Q:
Describe Section 2 of the Sherman Act.
Q:
(p. 964; 965) Describe the type of behavior Section 3 of the Clayton Act is designed to attack.
Q:
Describe the Hart-Scott-Rodino Antitrust Improvements Act.
Q:
Section 3 of the Clayton Act was designed to attack:
A. licensing arrangements.
B. exclusive dealing contracts.
C. aleatory contracts.
D. interlocking contracts.
Q:
Acme Candy, Inc. agrees to buy all the sugar it requires from one sugar refiner. Which type of contract is created in this case?
A. Requirements
B. Tie-in
C. Exclusive dealing
D. Interlocking
Q:
A lawn and garden store agreeing to sell only Brand A lawn mowers is an example of:
A. a requirements contract.
B. an exclusive dealing contract.
C. a tie-in contract.
D. price discrimination.
Q:
If one automobile firm merges with another automobile firm it is called a:
A. push down merger.
B. vertical merger.
C. conglomerate merger.
D. horizontal merger.
Q:
An oil producer's merger with an oil refiner is an example of a:
A. conglomerate merger.
B. push down merger.
C. horizontal merger.
D. vertical merger.
Q:
Conglomerate mergers that create a potential for reciprocal dealing have been successfully challenged under:
A. Section 3 of the Clayton Act.
B. Section 2 of the Sherman Act.
C. Section 7 of the Clayton Act.
D. Section 2(a) of the Robinson-Patman Act.
Q:
A candy company merging with a greeting cards company is a:
A. vertical merger.
B. conglomerate merger.
C. product-extension merger.
D. market-extension merger.
Q:
Section 3 of the Clayton Act applies to:
A. service contracts.
B. true consignments.
C. anticompetitive behavior.
D. monopolies.
Q:
Tie-in contracts are illegal under:
A. Section 3 of the Clayton Act.
B. Section 2 of the Sherman Act.
C. Section 7 of the Clayton Act.
D. Section 2(a) of the Robinson-Patman Act.
Q:
Tie-in contracts:
A. violate Section 3 of the Clayton Act regardless of the seller having monopoly power in the tie-in product.
B. do not violate Section 1 of the Sherman Act under any circumstance.
C. violate Section 3 of the Clayton Act if the seller has foreclosed competitors from a substantial volume of commerce in the tied product.
D. violate Section 1 of the Sherman Act and Section 7 of the Clayton Act.
Q:
Acme Seeds, Inc. refuses to sell its seeds to farmers unless they also agree to buy fertilizer from Acme, this is an example of a(n):
A. requirements contract.
B. tie-in contract.
C. exclusive dealing contract.
D. indirect price discrimination.
Q:
The functional interchangeability test helps to determine if:
A. a firm controls a very high percentage share of the relevant market.
B. the plaintiff has standing to bring an antitrust suit.
C. there has been joint action.
D. the defendant had an anticompetitive intent.
Q:
The abbreviated rule of reason analysis applies to:
A. restraints in which the overall reasonableness can be ascertained without a thorough examination of their pernicious and beneficial effects in the relevant markets.
B. restraints that have an obvious adverse impact on competition, but whose overall reasonableness cannot be immediately ascertained.
C. fully competitive behavior.
D. restraints that deserve a per se treatment because of their obvious unreasonableness.
Q:
Which of the following is true of joint ventures?
A. They are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution.
B. They directly violate Section 2 of the Sherman Act.
C. If the venture partners have complied with the act's notification requirements, they are liable for only treble damages in any civil suits that successfully challenge the arrangement.
D. They refer to the acquisition of one company by the other.
Q:
Licensing arrangements are:
A. per se violations of U.S. anti-trust laws.
B. subject to the rule of reason.
C. subject to strict scrutiny analysis.
D. unlikely to raise antitrust issues.
Q:
Section 2 of the Sherman Act:
A. outlaws monopolies.
B. outlaws the act of "monopolizing."
C. outlaws monopolies and monopolizing.
D. outlaws contracts, combinations, and conspiracies.
Q:
In a typical predatory-pricing scheme, the predator:
A. reflects changing conditions in the marketplace affecting the marketability of competitor's goods.
B. reduces the sale price of its product to below cost, hoping to drive competitors out of business.
C. grants a discriminatory price to a customer who has been offered a lawful, lower price by competitors.
D. furnishes customers with certain services that were not provided by the competitors.
Q:
When a manufacturer sells goods to retail outlets and suggests a retail price, there is no violation of Section 1 of the Sherman Act because:
A. there is no merger of any type.
B. there is no contract, combination, or conspiracy to fix the price.
C. there is no indication of an intent to monopolize.
D. there is no exclusive dealing contract.
Q:
Which of the following is true of a consignment agreement?
A. If a manufacturer delivers all goods to its dealers on a consignment basis, the goods become the property of the dealer.
B. The owner of goods delivers them to another who is to act as the owner's agent in selling the goods.
C. If a manufacturer delivers all goods to its dealers on a consignment basis, the dealer can lawfully fix the price of those goods.
D. Consignments have been held to be joint action.
Q:
Horizontal price fixing:
A. is also called resale price fixing.
B. can be legally justified if there was a direct agreement between competitors.
C. occurs when the manufacturer gets the retailer to agree to follow the suggested retail price.
D. is an attempt by competitors to interfere with the market and control prices.
Q:
Which of the following is true of vertical price-fixing?
A. It is an attempt by competitors to interfere with the market and control prices.
B. Vertical price fixing is not within the scope of section 1 of the Sherman Act.
C. It is illegal per se for manufacturers to state a "suggested retail price" for their products.
D. It is an attempt by manufacturers to control the resale price of their products.
Q:
If a distributor persuades a manufacturer to refuse to deal with a rival distributor, the two parties:
A. have committed a per se violation of Section 1 of the Sherman Act.
B. do not violate Section 1 of the Sherman Act since this is a unilateral action.
C. are conspiring to form a monopoly thus directly violating Section 2 of the Sherman Act.
D. are attempting vertical price-fixing.
Q:
Full rule of reason analysis:
A. cannot be determined until after a court conducts a full market analysis.
B. is a "quick look" form of rule of reason analysis.
C. like per se restraints, applies to restraints that are facially illegal.
D. is utilized for restraints that have an obvious adverse impact on competition.
Q:
The federal government's right to regulate business is derived from the _____ of the U.S. Constitution.
A. Commerce Clause
B. Separation Clause
C. Due Process Clause
D. Renegade Clause
Q:
To which of the following antitrust violations do federal antitrust laws apply?
A. Behavior that affects only intrastate (purely local) commerce.
B. Behavior that substantially affects interstate commerce or international trade.
C. Behavior that affects external economies other than the U.S.
D. Any type of nonimport trade.
Q:
(p. 952; 953) ________ provides that the Sherman Act shall not apply to nonimport trade unless the conduct has a direct, substantial, and reasonably foreseeable effect on trade or commerce within the U.S, on the U.S. import trade, or on the activities of U.S. exporters.
A. The Robinson-Patman Act
B. The Clayton Act
C. The Noerr Doctrine
D. The Foreign Trade Antitrust Improvement Act
Q:
Section 1 of the Sherman Act applies to:
A. unilateral actions.
B. joint actions.
C. nonimport trade.
D. mergers.
Q:
The ________ gives the federal courts broad injunctive powers to remedy antitrust violations.
A. Noerr Doctrine
B. Sherman Act
C. Parker Doctrine
D. Robinson-Patman Act
Q:
The Sherman Act:
A. makes contracts in restraint of trade and monopolization illegal.
B. does not provide criminal penalties for violations of its provisions.
C. does not give the federal courts any injunctive powers.
D. was specifically designed to attack tie-in, exclusive dealing, and requirements contracts.
Q:
In most cases, only a probability of anticompetitive effect is necessary for Clayton Act violations.
Q:
Since the Clayton Act deals with probable harms to competition, there is criminal liability for Clayton Act violations.
Q:
Tie-in contracts occur when a seller refuses to sell a product to a buyer unless the buyer also purchases another product from the seller.
Q:
The Parker Doctrine exempts many anticompetitive acts from the antitrust laws.
Q:
Foreign sovereign compulsion defense is in no way related to sovereign immunity.
Q:
Section 1 of the Sherman Act aims to attack joint action in restraint of trade.
Q:
Acts classified as per se illegal are presumed to be illegal.
Q:
When a manufacturer states a "suggested retail price" for their products, this violates Section 1 of the Sherman Act.
Q:
Horizontal (among competitors) price fixing is always per se illegal.
Q:
Under no circumstances can a single firm lawfully refuse to deal with firms or agree to deal only on certain terms.
Q:
The two components to a relevant market determination to decide if a firm has monopoly power are the geographic market and the product market.
Q:
Under the Sherman Act, courts are given the power to order the dissolution of violators of the Act in extreme cases.
Q:
Even behavior that affects only intrastate (purely local) commerce is within the scope of the federal antitrust laws.
Q:
The Foreign Trade Antitrust Improvement Act provides that the Sherman Act shall never apply to nonimport trade.
Q:
What types of debts are not affected by the discharge of a bankrupt debtor?
Q:
Anti-trust laws aim to maintain domestic and international competition and protect consumers from anti-trust conduct.
Q:
A petition for Chapter 13 proceedings:
A. can be initiated by the voluntary petition of a debtor.
B. can be initiated by the involuntary petition of creditors.
C. can be initiated by the trustee.
D. can be initiated by the secured creditors.
Q:
What are the primary purposes of the Bankruptcy Code?
Q:
Describe the creditor actions that are automatically stayed when the debtor files a bankruptcy petition.
Q:
When is a debtor allowed to void liens on his properties? What type of liens can be voided on this basis?
Q:
Who are the different unsecured creditors who receive distributions of a debtor's estate?
Q:
Which of the following statements concerning reaffirmation agreements is correct?
A. Reaffirmation agreements are unlawful under the Bankruptcy Act.
B. Reaffirmation agreements must be made before a discharge in bankruptcy is granted.
C. A debtor cannot voluntarily pay any dischargeable obligation without entering into a reaffirmation agreement.
D. Court approval is required for the reaffirmation of loans secured by real property.
Q:
Which of the following statements is true for Chapter 11 of the Bankruptcy Code?
A. Chapter 11 cases are liquidated rather than reorganized.
B. Unlike Chapter 13, in Chapter 11 cases, the debt is predominately nonconsumer debt.
C. Petitions for Chapter 11 cases cannot be filed voluntarily by the debtor.
D. The reorganization plan is essentially a contract between a debtor and its trustees.
Q:
Under Chapter 11 of the Bankruptcy Act, a reorganization plan:
A. must divide the creditors into classes and set forth how each creditor will be satisfied.
B. need not state which claims are impaired or adversely affected by the plan.
C. need not necessarily treat all creditors in a given class the same.
D. must give creditors and trustees shares in the corporation in exchange for the debt owed to them.
Q:
In 1986, ____ of the Bankruptcy Code was added to target the financial problems of the family farm.
A. Chapter 7
B. Chapter 11
C. Chapter 13
D. Chapter 12
Q:
Under Chapter 13 of the Bankruptcy Act, debtors:
A. can be free of all debts that are not dischargeable under Chapter 7.
B. cannot retain more property than is exempt from bankruptcy under state law.
C. are free from garnishment of their property by creditors.
D. can pay a lesser percentage of debts owed to the creditors than in straight bankruptcy proceedings.
Q:
A bankrupt person who has not been guilty of certain dishonest acts and who has fulfilled his duties as a bankrupt is entitled to a _____ in bankruptcy.
A. reaffirmation
B. claim
C. reorganization
D. discharge
Q:
Debts created by larceny or embezzlement by the debtor while acting in a fiduciary capacity are:
A. dischargeable.
B. secured.
C. nondischargeable.
D. unsecured.
Q:
Bill filed a petition for bankruptcy under Chapter 7 of the Bankruptcy Act. Bill listed, among others, the following debts: a debt to the National Bank for $10,000 secured by his 1980 truck, which is valued at $3,500; an unsecured debt to his friend, Frances; a $500 debt to the IRS for 1989 federal income taxes; and a $500 student loan to the university which was due one year ago. Under these circumstances:
A. the $500 debt to the IRS is a nondischargeable debt.
B. Frances can claim the debt even without filing a proof of claim.
C. the $500 student loan to the university is a dischargeable debt.
D. the bank can receive preferential payment because the debt owed to it is highest.
Q:
If a creditor is owed a debt that is provable and nondischargeable, he/she may:
A. participate in the distribution of the debtor's estate.
B. not pursue the debtor for payment even after the completion of the bankruptcy proceedings.
C. not enter into any voluntary agreement with the debtor for discharge of the debt.
D. need court approval for reaffirmation of loans.
Q:
Under the Bankruptcy Code, exemptions are only available to ___.
A. corporations
B. loan associations
C. individual debtors
D. non-profit organizations
Q:
A bankrupt debtor:
A. can elect to use the set of exemptions provided by either the state or federal bankruptcy law.
B. can elect to keep some items exempted under the state law and other items under the federal law.
C. cannot elect which set of exemptions will be allowed; the creditors' committee or trustee makes that decision.
D. can elect the exemptions of the place where she/he was domiciled for 100 days before filing of the petition.
Q:
Which of the following payments is considered preferential?
A. Payments made in the ordinary course of business.
B. Payment of monthly utility bills.
C. Payment made by an insolvent debtor within 50 days of the filing of the bankruptcy petition.
D. Payment to a creditor giving him a greater percentage of a preexisting debt than other creditors.
Q:
Six months before filing for bankruptcy, Shirley sold her new car to her brother, Claude, for $100 so that her creditors could not claim it. The market value of the car was $8,000 at the time of the sale. Under these circumstances:
A. the transfer is voidable by the trustee because Shirley did not receive fair consideration for this transfer.
B. the transfer is not voidable by the trustee because the transfer occurred 6 months before Shirley filed her bankruptcy petition.
C. the transfer is not voidable because the transfer occurred between two relatives.
D. the transfer is voidable by the creditors.
Q:
Which of the following statements is true for claims?
A. A trustee doesn't receive the defenses that a bankrupt person enjoys against claims.
B. If the debtor's property is subject to a secured claim of a creditor, that creditor has the first claim to it.
C. If a claim is provable, a creditor can participate in the distribution of the assets of the bankruptcy estate.
D. Both secured and unsecured creditors are required to file proofs of claims.
Q:
Objections to a discharge of bankruptcy can be filed by ___.
A. a creditor, the trustee, or the U.S. attorney
B. the U.S. attorney only
C. the trustee only
D. the secured creditors only
Q:
Involuntary petitions in straight bankruptcy can be filed against:
A. banking corporations and credit unions.
B. savings and loan associations.
C. a debtor engaged in business.
D. a nonprofit organization.
Q:
When a debtor files a bankruptcy petition, the creditor may be relieved from an automatic stay on his actions against the debtor:
A. if the creditor can show that his actions do not give adequate protection to the debtor.
B. if the debtors file a plan of reorganization that has a reasonable chance of being confirmed.
C. if his actions are aimed at obtaining possession of the debtor's property.
D. if the creditor can show that the stay jeopardizes his interest in certain property.
Q:
The court orders relief only if:
A. the debtor is generally not paying his/her debts as they become due.
B. a custodian takes possession of the debtor's property within six months of the filing of the petition.
C. the debtor is involved in a case to establish paternity.
D. the creditor wants to enforce a lien against the debtor's property.
Q:
A bankrupt person's estate is administered by ___.
A. the creditors
B. the creditors' committee
C. the trustee
D. the bankruptcy judge
Q:
Which of the following is true about a trustee's duties?
A. He represents the debtor in bankruptcy proceedings.
B. He represents the creditors in bankruptcy proceedings.
C. He cannot have the debtor's property appraised.
D. He cannot sell the debtor's nonexempt property.
Q:
A reorganization plan is essentially:
A. a supervised attempt by the state to solve a debtor's financial problems.
B. a contract between a debtor and its creditors.
C. a contract filed voluntarily by the creditors.
D. a contract between a debtor, its creditors and trustees.
Q:
Chapter 13 of the Bankruptcy Act:
A. permits compositions of credit.
B. does not help debtors to overcome their financial difficulties.
C. does not allow time extensions to pay debts.
D. permits reductions of debts.