Q&A Hero

Q: Lori owes the bank the full amount of the loan that she guaranteed since collection action against Becky was unsuccessful.

Q: The main role of the bankruptcy trustee is to protect the assets of the estate.

Q: Bankruptcy is the only option for businesses who want to not be liable for their debts.

Q: The out of existence option is not risky if the debtor has no assets.

Q: Properties owned by businesses are eligible for mortgage refinancing under the Mortgage Forgiveness Debt Relief Act.

Q: If a person cosigns a loan as a guarantor they become primarily liable for the debt.

Q: A secured creditor does not need to perfect their interest to be protected under the UCC.

Q: Filing a statement of notice with a state government is one way to perfect a security interest.

Q: Debtors may keep certain assets after they have filed for liquidation.

Q: A fraudulent transfer occurs when a debtor makes payment on a prebankruptcy debt up to a year before filing for bankruptcy.

Q: Unsecured creditors may seize any asset of the borrower once they have a debt collection judgment.

Q: A ________ has the legal power to void some transfers made before filing for bankruptcy.

Q: An ________ stops creditors from pursing their collection actions.

Q: A ________ is a contract that specifies the parties, describes the collateral, states the obligations of the debtor, and states the remedies available to the secured party.

Q: A ________ allows the debtor in possession to avoid any obligation that he would otherwise be forced to perform.

Q: Chapter 13 repayment plans are limited to ________ filing for bankruptcy.

Q: The collateral used for a mortgage is _____.

Q: Secured creditors must ________ their security interests before they are protected under the UCC.

Q: A ________ is a third party who agrees to only be liable to pay a loan if the debtor actually defaults.

Q: When a business no longer has enough money to pay their bills and maintain operations they are considered to be _____.

Q: Unsecured creditors give loans based on ________ without collateral.

Q: What constitutes a meeting of the minds for antitrust laws? Why is it important?

Q: Boston Bikes makes mountain bikes and sells them through Sid's Sports and Mountain All Sports as exclusive distributors. Boston Bikes' interest is in making sure that Sid's Sports and Mountain All Sports do not compete with each other in the same geographic market to ensure that their pricing is in line with their competitors. May Boston Bikes put limits on their distributors' markets?

Q: John owns a company that makes televisions. The company makes high quality TVs and has a large share of the market. Recently John's company decided to expand their business into surround sound systems. If the company requires its distributors to buy the surround sound system as a condition of sale for the TVs would there be an illegal restraint? Why or why not?

Q: The U.S. Major League Soccer League wants to have more similarity in its licensed goods so the league decides to contract with a single company to produce all of the licensed goods for every team. Will MLS be able to do so?

Q: Discuss the early motivations for enacting antitrust laws.

Q: Two car manufacturers entered into a joint venture to consolidate their efforts to create more fuel efficient vehicles. The manufacturers agreed to split the expenses and profits from the joint venture equally. If an antitrust violation is alleged, what standard would be used to evaluate the manufacturers' actions?

Q: Discuss the differences between the per se and rule of reason standards.

Q: Give an example of a boycott that would not be a per se horizontal restraint. Explain why it is a per se horizontal restraint.

Q: The CEO of a major computer technology firm wants to form an organization for computer firms in order to share data, information, and ideas. Depending on what was shared at the meetings the organization may violate antitrust laws. What standard should be used to analyze the organization?

Q: Discuss the difference between horizontal and vertical price fixing.

Q: What evidence may a company offer in defense to an antitrust violation under the rule of reason standard? A.the anticompetitive harm was not harmful to the government B.none, if the company violates the standard there is no defense C.their actions were justified and necessary under the economic conditions D.there was no economic harm to the consumer

Q: Which president is known for leading the antitrust reform movement? A.Theodore Roosevelt B.Harry Truman C.Woodrow Wilson D.Franklin Roosevelt

Q: Christian and Jimmy both design and manufacture popular shoes. They believe that one of the department stores that carries both of their designs is undercutting the other department stores' prices. After discussion, Christian and Jimmy decide that they should not sell their shoes to the department store again. What type of restraint is this? A.meeting of the minds B.price fixing C.boycott D.market allocation

Q: What is the test to determine if an entity has monopoly power? A.share of the relevant market B.rule of reason C.vertical integration test D.bright line

Q: In U.S. v. Microsoft the appellate court reversed the finding of the district court that: A.Microsoft fundamentally employed illegal anticompetitive means to maintain and further their monopoly the operating systems market. B.Microsoft should be broken apart. C.Microsoft business practices were a per se violation of the Sherman Act. D.Microsoft did not employ illegal anticompetitive means to maintain and further their monopoly of the operating systems market.

Q: In U.S. v. Microsoft the appellate court found that: A.Microsoft's business practices were a per se violation of the Sherman Act. B.Microsoft illegally attempted to monopolize the browser market. C.Microsoft did not employ illegal anticompetitive means to maintain and further their monopoly of the operating systems market. D.Microsoft employed illegal anticompetitive means to maintain and further their monopoly of the operating systems market.

Q: Antitrust laws designed to combat the problem of monopolization is known as: A.horizontal restraints. B.structural offenses. C.rules of reason. D.consent orders.

Q: Which of the following is not a vertical restraint? A.market allocation B.tying agreements C.exclusive selling, territorial, and dealing agreements D.price fixing

Q: In American Needle Inc. v. National Football League, the NFL had entered into an agreement with Reebok to manufacture all of its teams' official goods and claimed that all 32 teams were a single-entity. American Needle sued claiming that the Reebok agreement was an illegal conspiracy under the Sherman Act. The U.S. Supreme Court found that: A.the 32 teams were a collective unit and not subject to the Sherman Act. B.the 32 teams were not a collective unit and were subject to the Sherman Act. C.the 32 teams were not a collective unit but were exempt from the Sherman Act because of the economic environment of sports. D.there was no Sherman Act violation.

Q: In which case did the Supreme Court hold that a unilateral boycott does not fall under the Sherman Act? A.Greyhound v. International Business Machines Corp. B.United States v. Colgate C.United States v. Grinnell D.Covad Communications Co. v. BellSouth Corp.

Q: Which of these agencies enforce federal antitrust laws? A.Securities and Exchange Commission B.Federal Bureau of Investigation C.Better Business Bureau D.Federal Trade Commission

Q: Which of these is an example of a tying agreement? A.as part of purchasing a new computer, a buyer must also purchase a new monitor B.when purchasing a new digital music player, a buyer is given the option of buying songs C.when purchasing a used car, a buyer is offered a discount on new tires D.when purchasing a couch, the buyer is given free throw pillows

Q: Which act was designed to prevent monopolies from being created through mergers? A.Clayton Act B.Celler-Kefauver Antimerger Act C.Sherman Act D.Federal Trade Commission Act

Q: This economist/philosopher is cited in support of frequent meetings being circumstantial evidence of anticompetitive collusion? A.Plato B.Socrates C.John Locke D.Adam Smith

Q: Vertical restraints are agreements between: A.business and government. B.noncompetitors. C.competitors. D.consumers and government.

Q: Horizontal restraints are agreements between: A.business and government B.noncompetitors C.competitors D.consumers and government

Q: If there is no direct evidence of an agreement to manipulate the competitive market between two CEOs a prosecutor may use their calendars and subsequent actions that were not in the usual course of business as circumstantial evidence to prove what requirement of an antitrust violation? A.price fixing B.vertical restraints C.horizontal restraints D.meeting of the minds

Q: The law firm of Smith, Brown and Jones has just held a meeting in which they have decided that all fees charged by the partners will be $500 per hour with no exceptions. They also set nonnegotiable fees for such things as preparation of wills, real estate settlements and other types of standard types of cases. Smith, Brown and Jones: A.are guilty of horizontal price fixing under the Sherman Act. B.are guilty of vertical price fixing under the Sherman Act. C.are guilty of price discrimination under the Robinson-Patman Act. D.have broken no laws.

Q: Which of these was the first major antitrust law? A.Clayton Act B.Celler-Kefauver Antimerger Act C.Sherman Act D.Federal Trade Commission Act

Q: Modern antitrust law's focus is on: A.protecting individual companies. B.protecting the competitive process. C.all of the above. D.none of the above.

Q: Joe and Arthur each own a chain of restaurants. In order to ensure successful restaurants, Joe and Arthur enter into an agreement that Joe will open his new locations in Kansas City but not St. Louis and Arthur vice versa. This is an example of: A.price fixing. B.market allocation. C.tying agreements. D.boycotts.

Q: When is a monopoly illegal under the Sherman Act? A.when it has horizontal restraints B.when it is acquired or maintained through prohibited means C.all monopolies are illegal under the Sherman Act D.The Sherman Act does not address monopolies

Q: Which of these is not one of the steps in a three step test for attempted monopolization under the Sherman Act? A.the entity had a demonstrable and specific intent to achieve a monopoly B.the entity acted in an anticompetitive manner designed to injure its competitors C.the entity formed an agreement with others to achieve a monopoly D.dangerous probability that monopoly power would fact be achieved

Q: The Robinson-Patman Act make it illegal for a business entity to discriminate in price "between different purchasers of commodities of like quality or grade." In order to violate this act, the business must: A.make sales at different prices to at least three different purchasers. B.make one sale of a different price to a purchaser. C.make two or more sales to different purchasers at different prices. D.give different price quotes to different purchasers.

Q: Which act does the Robinson-Patman Act amend? A.McCarthy Act B.Hart-Scott-Rodino Act C.Sherman Act D.Clayton Act

Q: The U.S. Supreme Court held that the Sherman Act applies to commercial agreements where the parties acted in what kind of manner? A.unreasonable B.deceptive C.controlling D.any

Q: In Texaco Inc. v. Dagher et al. two oil refiners and gas suppliers, Texaco and Shell Oil, entered into a joint venture called Equilon to consolidate their operations in the western U.S. Historically, Texaco and Shell were competitors but for their joint venture they shared expenses and profits equally. The products produced by Equilon were sold under the brand names Texaco and Shell at a mutually agree upon price. Texaco and Shell retailers brought a class action lawsuit against the two companies claiming there was a per se violation of the Sherman Antitrust Act because of the lack of price competition. The court held that: A.there was a per se violation because the joint venture was plainly anticompetitive. B.there was a per se violation because oil companies are automatically held to this standard. C.the rule of reason standard should apply because a market analysis was relevant. D.the rule of reason standard should apply because it is a joint venture and not a meeting of the minds.

Q: There are two ice cream stands at the same intersection. In order to protect their businesses, the two owners agree that they will charge their customers the same prices for an ice cream cone. What type of horizontal restraint is this? A.not a horizontal restraint B.price fixing C.market allocation D.boycott

Q: Which of these is not a type of horizontal restraint? A.tying agreement B.allocation of markets C.price fixing D.boycotts

Q: All monopolies are illegal.

Q: Price fixing is a clear example of a per se violation.

Q: Proof of a seller's economic power in the market is necessary to prove an antitrust violation under the Clayton Act.

Q: Adam Smith's book, The Wealth of Nations, is a source of support for some elements of antitrust law.

Q: It is not illegal for a grocery store to require a customer to buy milk in order to buy cookies.

Q: The court order for Microsoft to break apart into multiple entities in U.S. v. Microsoft was overturned on appeal.

Q: The Clayton Act was enacted to limit the provisions of the Sherman Act.

Q: The Clayton Act was enacted to prohibit anticompetitive practices not included in the Sherman Act.

Q: The Federal Trade Commission Act was the first antitrust act.

Q: The Sherman Act only prohibits contracts, combinations, and conspiracies in restraint of trade.

Q: The Celler-Kefauver Antimerger Act covers general antitrust prohibitions.

Q: The courts have adopted a soft per se analysis for cases involving tying agreements.

Q: There is a bright-line test for determining the amount of market share necessary to be considered a monopoly.

Q: Rockefeller's Standard Oil Trust is an example of a company that participated in antitrust behavior.

Q: It is not market allocation if two different airlines agree to split the major travel routes between them, rather than both fly to all the same cities.

Q: Violators of antitrust legislation are subject to both civil and criminal suits.

Q: The Clayton Act was amended by the Robinson-Patman Act.

Q: U.S. v. Microsoft held that the appropriate standard to analyze Microsoft's actions in the browser market was the rule of reason.

Q: In American Needle Inc. v. National Football League, the 32 football teams were treated as a single entity because they belong to the same sports league.

Q: The test for determining a monopoly under the Sherman Act is the entity's share of the relative market.