COMMERCIAL LAW CHAPTER 39 FINAL PAPER
2026 EXAM QUESTIONS AND ANSWERS
GRADED A+
◉Chicago School . Answer: adherents argued further that the market
should decide the most efficient size for each industry, courts should ask
"has competition been harmed?"
◉Post Chicago School . Answer: adherents recognize that competition
alone may not be enough to protect consumers
◉the major provisions of the antitrust laws are: . Answer: 1) section 1
of the Sherman Act prohibits all agreements "in restraint of trade"
2) section 2 of the Sherman Act bans "monopolization"-the wrongful
acquisition of a monopoly
3) The Clayton Act prohibits anti competitive mergers, tying
arrangements, and exclusive dealing agreements
4) The Robinson-Patman Act bans price discrimination that reduces
competition
◉violations of the antitrust laws two categories . Answer: 1) per se
2) rule of reason
, ◉per se violation . Answer: an automatic breach of antitrust laws
◉rule of reason violation . Answer: an action that breaches antitrust
laws only if it has an anticompetitive impact
◉Justice Department and the Federal Trade Commission (FTC) have
authority to enforce the antitrust laws . Answer: ...
◉ONLY the Justice Department can bring criminal proceedings; the
FTC is limited to civil injunctions and other administrative remedies .
Answer: ...
◉in developing a competitive strategy, managers typically consider two
different approaches: . Answer: 1) cooperative strategies that allow
companies to work together to their mutual advantage
2) aggressive strategies, designed to create an advantage over
competitors
◉three types of cooperative strategies are potentially illegal: . Answer:
1) horizontal agreements among competitors
2) vertical agreements among participants at different stages of the
production process
3) mergers and joint ventures among competitors
2026 EXAM QUESTIONS AND ANSWERS
GRADED A+
◉Chicago School . Answer: adherents argued further that the market
should decide the most efficient size for each industry, courts should ask
"has competition been harmed?"
◉Post Chicago School . Answer: adherents recognize that competition
alone may not be enough to protect consumers
◉the major provisions of the antitrust laws are: . Answer: 1) section 1
of the Sherman Act prohibits all agreements "in restraint of trade"
2) section 2 of the Sherman Act bans "monopolization"-the wrongful
acquisition of a monopoly
3) The Clayton Act prohibits anti competitive mergers, tying
arrangements, and exclusive dealing agreements
4) The Robinson-Patman Act bans price discrimination that reduces
competition
◉violations of the antitrust laws two categories . Answer: 1) per se
2) rule of reason
, ◉per se violation . Answer: an automatic breach of antitrust laws
◉rule of reason violation . Answer: an action that breaches antitrust
laws only if it has an anticompetitive impact
◉Justice Department and the Federal Trade Commission (FTC) have
authority to enforce the antitrust laws . Answer: ...
◉ONLY the Justice Department can bring criminal proceedings; the
FTC is limited to civil injunctions and other administrative remedies .
Answer: ...
◉in developing a competitive strategy, managers typically consider two
different approaches: . Answer: 1) cooperative strategies that allow
companies to work together to their mutual advantage
2) aggressive strategies, designed to create an advantage over
competitors
◉three types of cooperative strategies are potentially illegal: . Answer:
1) horizontal agreements among competitors
2) vertical agreements among participants at different stages of the
production process
3) mergers and joint ventures among competitors
