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Q:
If an acceptance of an offer is received after the offer has been rejected, there is no contract.
Q:
Fun-E Products, Inc., makes and sells toys. The government agency that has the authority to remove a potentially hazardous toy from the market is
a. the Consumer Product Safety Commission.
b. the Federal Reserve Board of Governors.
c. the Federal Trade Commission.
d. the Food and Drug Administration.
Q:
Under an exclusive-dealing contract, a seller promises a buyer a certain territory in which the buyer will have no direct competition.
Q:
In most states, revocation is not effective until the offeree receives it.
Q:
Kristen receives unsolicited merchandise in the mail. Kristen
a. may keep the merchandise without any obligation to the sender.
b. must return the merchandise within five days to avoid payment.
c. must return the merchandise within fifteen days to avoid payment.
d. must return the merchandise within thirty days to avoid payment.
Q:
Under the mailbox rule, an acceptance can be valid as soon as it is sent.
Q:
Charging different prices to different buyers for identical goods is price discrimination.
Q:
The Clayton Act prohibits certain classes of price discrimination.
Q:
To exercise the power of acceptance, an offeree must accept unequivocally.
Q:
Like other manufacturers and sellers, Happy Household Products Company packages its products with labels. Under federal law, such labels must be
a. accurate and use easily understood words.
b. bright and feature eye-catching colors.
c. graphically distinctive and well-designed.
d. interesting and revealing to the average consumer.
Q:
Special Roast Coffee, Inc., processes and sells a variety of coffee products. Special Roast's product packages must include
a. neither the contents' net quantity nor the product's identity.
b. the contents' net quantity and the product's identity.
c. the contents' net quantity only.
d. the product's identity only.
Q:
A single seller acting unilaterally is free to deal, or not to deal, with anyone it chooses.
Q:
The death of a party to a contract will always result in the automatic termination of that contract.
Q:
Penny Stock Company faxes ads to Quality Personnel Corporation and other businesses without the recipients' permission. This is
a. illegal.
b. legal and smart because such ads are generally cheap.
c. legal but not smart because such ads are generally ineffective.
d. legal but only potentially smart, depending on the response rate.
Q:
The mirror image rule requires an acceptance to adhere exactly to an offer to create a contract.
Q:
To generate sales, Yakkity-Yak, Inc., uses phone solicitation. Under federal law and Federal Trade Commission regulations, in soliciting business, Yakkity-Yak's telemarketers must
a. disclose all material facts related to a sale.
b. identify the seller's name (only if asked).
c. refrain from calling consumers who have not requested a call.
d. speak clearly and conspicuously.
Q:
The offense of monopolization does not require the intent to monopolize.
Q:
A counteroffer does not terminate but continues an offer.
Q:
Bubbly Bottling Company is engaged in the soft-drink bottling and distribution industry in the states of New York and New Jersey. The firm currently has about 40 percent of the market for these products and related services. Carbonate Distribution Corporation competes with Bubbly in the same states. Carbonate has about 35 percent of the market. If Bubbly were to acquire the stock and assets of Carbonate, would Bubbly be in violation of any of the antitrust laws? If so, which one? Discuss fully.
Q:
The Internet is changing the notion of the size and limits of a relevant geographic market.
Q:
The offeree's rejection of an offer terminates it.
Q:
Java Bean Company imports coffee beans and sells them under two-year contracts to Mellow Roast, Inc., and other coffeemakers. The contracts require that during the two-year term a coffeemaker not buy beans from Java Bean's competitors. The contracts do not limit the coffeemakers' purchase of tea or other beverage ingredients from other suppliers, however. In the second year of the contract, Mellow Roast protests that this arrangement violates antitrust law. Is Mellow Roast correct? If not, why not? If so, under which antitrust statute, or statutes, could these contracts be held illegal?
Q:
The possession of monopoly power alone does not constitute the offense of monopolization.
Q:
An offeror can revoke an option contract if the offeror decides that the consideration given is inadequate.
Q:
Fairway Products, Inc., and Golly Golf Clubs Corporation lobby Congress to pass a law banning a competitor's product. This joint effort is probably
a. a violation of antitrust statutes.
b. exempt from antitrust enforcement.
c. not subject to antitrust law.
d. subject only to antitrust common law.
Q:
For products that are sold nationwide, the relevant geographic market encompasses the entire United States.
Q:
There are no irrevocable offers.
Q:
The primary measure of monopoly power is a competitor's assessment of the acts of a firm under review.
Q:
Global Services Corporation engages in trade practices that may violate antitrust law. The Federal Trade Commission has the power to act against unfair trade practices under
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no law.
Q:
Revocation of an offer made to the general public must be communicated in the same manner in which the offer was communicated.
Q:
Mango Corporation believes that Melon Corporation engages in anticompetitive behavior in an attempt to drive Mango and its other competitors out of the market. Antitrust laws can be enforced against Melon by
a. Mango and its competitors only.
b. Mango, its competitors, and the Federal Trade Commission only.
c. Mango, its competitors, the Federal Trade Commission, and the U.S. Department of Justice.
d. the Federal Trade Commission and U.S. Department of Justice only.
Q:
Monopoly power may be proved by evidence that a firm used its power to control prices.
Q:
A person who does not know about a reward cannot claim it.
Q:
Size alone does not determine whether a firm is a moÂnopoly.
Q:
Luminescent Silicon Corporation, which controls 40 percent of the computer-chip market in the United States, merges with Micro Processors, Inc., which controls 15 percent of the same market. This merger is
a. a violation only if the result more clearly concentrates the market.
b. a violation only if the result makes it more difficult for potential competitors to enter the market.
c. a violation if the result more clearly concentrates the market and makes it more difficult for potential competitors to enter the market.
d. not a violation.
Q:
In an auction in which the seller reserves the right to accept or reject any bid, there is no binding contract until the seller accepts a bid, even if the auctioneer accepts a bid during the auction.
Q:
Monopoly power is a minor amount of market power.
Q:
Tasty Eatin" Corporation merges with Hasty Burgers, Inc. This merger between firms that compete with each other in the same market is
a. a horizontal merger.
b. an interlocking directorate.
c. a tying arrangement.
d. a vertical merger.
Q:
A seller offering goods for sale in an auction through an auctioneer will create a binding contract.
Q:
Predatory pricing involves selling a product at prices substantially above the fair market value.
Q:
Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies, Inc., only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products, even though there are other corn sellers from whom Nice Candies could buy. This is
a. an exclusive-dealing contract.
b. a tying arrangement.
c. price discrimination.
d. a group boycott.
Q:
If an ad to sell a single item gets more than one acceptance, the offeror must sell the item to each party who accepted or be liable for breach of contract.
Q:
Section 1 of the Sherman Act condemns monopolization.
Q:
A trade association practice or agreement that restrains trade is analyzed under the rule of reason.
Q:
International Software, Inc., conditions the sale of one of its products on Nationwide Office System's agreeing to buy another of International's products. This deal is
a. legal, depending on its purpose and the effect on competition.
b. legal, depending on production and transportation costs.
c. legal under any circumstances.
d. not legal under any circumstances.
Q:
Excel Corporation conditions shipments of its products to Federated Stores, Inc., on Federated's agreement not to buy products from Great Goods Company, Excel's competitor. This is
a. an exclusive-dealing contract.
b. a tying arrangement.
c. price discrimination.
d. a unilateral refusal to deal.
Q:
An advertisement is generally treated as an offer to contract.
Q:
An expression of opinion is not a valid offer.
Q:
By contract, Quality Metals Corporation forbids Resource Refining, Inc., a wholesale buyer of Quality's products, from purchasing the products of Quality's competitors. This is allowed
a. under any circumstances.
b. unless its effect is to cause a competitor a loss of any business.
c. unless its effect is to substantially lessen competition.
d. unless there is no effect on a competitor.
Q:
Resale price maintenance agreements are subject to analysis under the rule of reason.
Q:
An invitation to negotiate always constitutes a valid offer.
Q:
To drive its competitors out of a certain geographic segment of its market, Fryin" Potatoes, Inc., sets the prices of its products below cost for the buyers in that area. This is
a. a refusal to deal.
b. business acumen.
c. predatory bidding.
d. price discrimination.
Q:
Territorial and consumer restrictions are per se violations.
Q:
An offer does not need to be communicated to the offeree to be effective.
Q:
Precision Press Corporation, a disk manufacturer, sells its DVDs in certain quantities to Quik Shows, a retailer, for $275 but charges Rite Views, a competitive retailer, $350. This is most likely a violation of
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no antitrust law.
Q:
A market division by class of customer between rival firms violaÂtes antitrust law.
Q:
A group boycott is not a per se violation.
Q:
An agreement is usually evidenced by an offer and an acceptance.
Q:
Alpha Corporation agrees to buy bicycles from Cycle Company. Under the agreement, Cycle can terminate the deal for any reason on sixty days' notice. Alpha makes design changes in the bikes to better suit its market. Without asking Alpha, Cycle incorporates the changes into the bikes it sells to other buyers, and then terminates its agreement with Alpha. Alpha files a suit against Cycle, seeking recovery of benefits conferred on Cycle by the design changes on the basis of a quasi contract. What is Cycle's best defense?
Q:
HVAC Parts Company charges different buyers different prices for identical goods. HVAC's prices are subject to evaluation under
a. the Clayton Act.
b. the Federal Trade Commission Act.
c. the Sherman Act.
d. no antitrust law.
Q:
A price-fixing agreement that is reasonable does not violate antitrust law.
Q:
Cody signs and returns a letter from Dora, referring to Dora's Double-D Ranch and its price. When Cody attempts to complete the deal, Dora refuses, claiming that they have no contract. Cody claims they do. What standard determines whether these parties have a contract?
Q:
Fresh Vegetables, Inc., a wholesaler, refuses to sell its produce to Good Mart Stores, Inc., a retailer. Under the Sherman Act, this is
a. "an unfair or deceptive act or practice."
b. a per se violation.
c. not a violation.
d. subject to analysis under the rule of reason.
Q:
A price-fixing agreement is an agreement by two or more sellers to boycott a particular person or firm.
Q:
An antitrust action is brought against Tri-State Transport Company, alleging the offense of attempted monopolization. To be guilty of this offense, Tri-State's attempt must have
a. a dangerous probability of success.
b. a deadly guaranty of success.
c. a distant possibility of success.
d. a distinct improbability of success.
Q:
National Insurance Company (NIC) insures Omega, Inc.'s assets under a policy that states any "amendment" must be approved by NIC and signed by Omega. In renewing the policy, NIC insists on an "amendment" excluding coverage for flood damage. Omega signs the amendment. Based on the court's reasoning in Case 10.3, Citizens Communications Co. v. Trustmark Insurance, if flood damage occurs
a. NIC must pay Omega because the amendment does not meet the policy's conditions.
b. NIC must pay Omega because the policy predates the amendment.
c. Omega must suffer the loss because the amendment meets the policy's conditions.
d. Omega must suffer the loss because the policy predates the amendment.
Q:
An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement's benefits outweigh its anticompetitive effects.
Q:
Rally Speedboat Corporation refuses to sell its products to Super Weekends, Inc., a recreational water products dealership. This is
a. an exclusive-dealing contract.
b. a horizontal market division.
c. attempted monopolization.
d. a unilateral refusal to deal.
Q:
An act must substantially affect interstate commerce to violate antitrust law.
Q:
Seaside Cannery, Inc., is one of many producers of canned seafood. Seaside refuses to sell its products to Port Harbor Restaurant Corporation. This refusal is most likely
a. an anticompetitive practice in violation of the Clayton Act.
b. a per se violation of the Sherman Act.
c. a violation of the Sherman Act under the rule of reason.
d. not a violation of antitrust law.
Q:
Adams Accounting Services and Best Products, Inc., enter into a contract. Terms in the contract that are the subject of separate negotiation are considered subordinate to
a. standardized terms.
b. terms that can be understood only by lawyers and judges.
c. terms that are not negotiated separately.
d. none of the above.
Q:
A restraint of trade is an agreement between firms that has the effect of reducing competition in the marketplace.
Q:
To acquire monopoly power in its market, Perfect Plastics, Inc., sets its prices lower than its competitors. Under the Sherman Act, this is
a. a per se violation.
b. a violation if its competitors make similar deals.
c. a violation if it thereby acquires monopoly power.
d. not a violation.
Q:
Cory enters into a contract with Diane to act as her personal sports trainer. If they later dispute the meaning, and the contract contains unclear terms, the rules of contract interpretation will give effect to
a. the parties' intent as expressed in their contract.
b. what the defendant claims was the parties' intent.
c. what the plaintiff claims was the parties' intent.
d. what the parties now agree they intended.
Q:
The Sherman Act, the Clayton Act and the Federal Trade Commission Act are all examples of legislation designed to curb anticompetitive business practices.
Q:
Master Manufacturing Corporation has exclusive control over the market for its product. Under the Sherman Act, this is
a. a per se violation.
b. a violation if it acquired this power through "business acumen."
c. a violation if it acquired this power through "anticompetitive means."
d. not a violation.
Q:
Ada mistakenly pays property taxes that should have been assessed against Bud. Ada can recover the amount from Bud in quantum meriut
a. even if Bud was not aware of the error.
b. only if Bud tried to conceal the error.
c. only if Bud was aware of the error.
d. under no circumstances.
Q:
The basic purpose of antitrust law is to regulate economic competition.
Q:
A suit is filed against Maxi Corporation, alleging that the firm committed the offense of monopolization. To determine whether Maxi has monopoly power requires looking at
a. only Maxi's size.
b. only the relevant geographical market.
c. only the relevant product market.
d. the relevant geographical market and the relevant product market.
Q:
Marie, a judge, imposes a quasi contract on National Sales Corporation and Outstate Delivery Company most likely to
a. avoid the unjust enrichment of one party at the expense of the other.
b. punish the failure of one party to honor a moral obligation to the other.
c. reward the semi-contractual conduct of one party toward the other.
d. sanction the non-contractual behavior of one party toward the other.