BUSN LAW CH 14 Exam Questions and Answers Fully Solved Latest Version

BUSN LAW CH 14 Exam Questions and Answers Fully Solved Latest Version Antitrust laws - AnswersLaws that prevent monopolies and promote competition and fairness. Through means other than superior skill, foresight, and industry. To encourage the production of quality goods and services at the lowest prices, concerns of consumers. Two Categories of Trade Restraints - AnswersHorizontal and Vertical Horizontal Restraint of Trade - AnswersRestraint of trade involving an agreement among competitors at the same distribution level for the purpose of minimizing competition. Horizontal Trade Restraints - AnswersMonopolization Attempt to Monopolize Price Fixing Division of Markets Group Boycotts/Refusals to deal Horizontal Mergers Interlocking Directorates Monopolization - AnswersAn agreement, unreasonably restrains competition, and affects interstate commerce. The possession of monopoly power in the relevant market: Determined by customers preferences and Cross-Elasticity of demand for the product. The willful acquisition or maintenance of that power: by some purposeful or deliberate act (Predatory Pricing) Cross Elasticity - AnswersBuyers can switch to another brand if price increases. Relevant Market - AnswersA tool to identify and define the boundaries of competition between firms. 1. Relevant geographic market 2. Relevant product market Innocent Monopoly - AnswersAchieved solely by merit, and is legal Defenses of Monopolization - AnswersInnocent Acquisition and Natural Monopoly Innocent Acquisition - AnswersSuperior business acumen, skill, foresight, or industry Natural Monopoly - AnswersSmall market that can support only one competitor Attempts to Monopolize - AnswersViews of the Majority of Lower courts: Defendant was engaged in some anticompetitive conduct, had the intent to monopolize, and had a large enough market share, in order to create a dangerous probability of successfully monopolizing that market. Supreme Court: Has denied writ of certiorari in cases dealing with Monopolization Minority of lower courts: That independent proof of dangerous probability of success is not always necessary Price Fixing - AnswersParticipants on the same side of the market to buy or sell a product at a fixed price. Such that the price is maintained at a given level by controlling supply and demand. Intent: Push the price of a product as high as possible, leading to profits for all sellers. Division of Markets - AnswersMarket division or allocation schemes. Ex: If two companies split the U.S in half one has control over their side.