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Exam 22: Antitrust Law and Promoting Competition

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Question 21

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Speedee Snoboards, Inc., refuses to sell its products to Timber Mountain WinterSports Stores, Inc., a retail snowboard dealership. This is

A) an exclusive-dealing contract.
B) a territorial restriction.
C) attempted monopolization.
D) a unilateral refusal to deal.

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Question 22

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A market division by class of customer between rival firms does not violate antitrust law.

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Question 23

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The Sherman Act is an example of legislation designed to curb anticompetitive business practices.

A trade association practice or agreement that restrains trade is generally analyzed under the rule of reason.

An antitrust action is brought against Carrier Transport Company, alleging the offense of attempted monopolization. To be guilty of this offense, Carrier's attempt must have

Dredgers, Inc., is the major wholesale distributor of heavy equipment in the state of Georgia. Its closest competitor is Excavators Company, another Georgia firm. The two firms agree that Excavators will operate in southern Georgia and Dredgers will operate in northern Georgia. This is

The acquisition of power as a consequence of a superior product is an element of monopolization.

Clear View Corporation offers to sell its flat-panel display monitors to Best Computer & Video, Inc., only if Best agrees to buy Clear View's servicing of its products along with the monitors. This is

Spa Selectiva Company makes and sells beauty salon supplies. By selling its product at prices substantially below the normal cost of production, Spa Selectiva hopes to drive its competitors from the market. This is

To acquire monopoly power in its market, Global Condiments, Inc., sets its prices substantially below the normal costs of production. Under antitrust law, this is

Agreements that are deemed per se violations of Section 1 of the Sherman Act include all of the following except

Fiesta Food Company, Gourmet Cheeses, Inc., and Healthy Eats, Inc. agree to exchange information and share advertising. This trade association agreement is most likely

Resale price maintenance agreements are per se violations of the Sherman Act.

An agreement that is deemed a per se violation will be examined by a court to determine whether the agreement actually constitutes a reasonable restraint of trade.

Size of the company (based on overall revenue) alone determines whether a firm is a monopoly.

Territorial and customer restrictions imposed via vertical restraint are judged under the rule of reason.

HVAC Parts Company charges different buyers different prices for identical goods. HVAC's prices are subject to evaluation under

Monopoly power exists when a firm has an extreme amount of market power.

Earthgrown Flora, Inc., is one of many producers of cut flowers. Earthgrown refuses to sell its products to Florist Shops Corporation. Under antitrust law, this refusal is normally

Insurance companies are exempt from antitrust laws whenever state regulation exists.