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Business and Its Environment

Business

Quiz 9 :

Antitrust: Economics, Law, and Politics

Quiz 9 :

Antitrust: Economics, Law, and Politics

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The Federal Trade Commission cannot initiate its own investigations of practices it believes may violate antitrust laws.
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True False
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Answer:

False

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Horizontal practices that come under the antitrust laws are those involving firms in a supply arrangement or a channel of distribution.
Free
True False
Answer:

Answer:

False

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Under antitrust laws, the burden of proof to show that the act committed is not unreasonable is on the defendant.
Free
True False
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Answer:

False

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In addition to a cost difference defense, a firm can defend itself by arguing that the price discrimination was necessary to meet competition.
True False
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Vertical practices under the antitrust laws involve allocation of territories by a manufacturer among distributors or retailers, refusals to deal, and tying.
True False
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As a result of the agreement between the Department of Justice and the Federal Trade Commission, cases are allocated primarily by the nature of the complaint and secondarily by industry.
True False
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A conglomerate merger involves two firms that do not operate in the same industries either as competitors or as part of a channel of distribution or supply.
True False
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A defendant has two defenses under the rule of reason-the first is that defendant did not commit the crime and the second is that, although the defendant committed the act, it was not unreasonable to do so.
True False
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Antitrust law includes only statutes and not the court decisions interpreting those statutes.
True False
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Price discrimination practice is a vertical practice under antitrust laws.
True False
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Fines cannot be imposed in civil cases except to compensate the government for actual damages when it is a purchaser of goods and services.
True False
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A lens manufacturing firm convinces other manufactures in the industry to halt supplies to a distributor. Considering all things constant, the lens manufacturing firms are not liable to an antitrust suit.
True False
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Exemptions are also provided under the antitrust laws.
True False
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Monopolization is also addressed under the antitrust laws.
True False
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A leading video game console manufacturer requires dealers to carry only its products. Considering all things constant, an antitrust suit may be filed against the manufacturer.
True False
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Vertical merger involves two firms in the same industry.
True False
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Individuals and managers cannot be subject to fines under the Antitrust Procedures and Penalties Act.
True False
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Government enforcement of antitrust laws is more widespread than private enforcement.
True False
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The Sherman Act allows private parties to bring lawsuits for practices that are illegal under the Act.
True False
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Both the Department of Justice (DOJ) and the Federal Trade Commission (FTC) have the authority to enforce the Sherman Act and the Clayton Act, but only the FTC can enforce the Federal Trade Commission Act.
True False
Answer:
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