Chapter 49 - Antitrust: The Sherman Act

The three antitrust laws are the Sherman Act, Clayton Act, and Pricing Act.

• True
• False

Section 1 of the Sherman Act prohibits concerted action in restraint of trade.

• True
• False

Per se violations are conclusively presumed to violate § 1 of the Sherman Act.

• True
• False

Using a rule of reason approach, conduct violates § 1 if a minimum anticompetitive effect occurs.

• True
• False

If competitors alter market forces by horizontal price control, it is per se illegal.

• True
• False

Agreements among competitors to divide up a market by allocating territories is legal unless it destroys competition.

• True
• False

Having a monopoly is not illegal.

• True
• False

Z will not sell to buyers unless they agree to buy their products exclusively from Z. Has Z violated antitrust law?

• No since freedom of contract is allowed
• Z's exclusive dealing agreement is illegal if Z's power is anticompetitive
• Z's exclusive dealing agreement is per se illegal

The elements of monopolization include:

• exclusive dealing agreement

• monopoly power

• willful anticompetitive conduct

• both monopoly power and anticompetitive conduct