Business Law

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  1. A type of anticompetitive agreementsuch as a horizontal price-fixing agreementthat is considered to be so injurious to the public that there is no need to determine whether it actually injures market competition; rather, it is in itself ____ of the Sherman Act.
    per se violation
  2. The body of federal and state laws and statutes protecting trade and commerce from unlawful restraints, price discrimination, price fixing, and monopolies. The principal federal ____ statues are the Sherman Act of 1890, the Clayton Act of 1914, and the Federal Trade Commission Act of 1914
    Antitrust Law
  3. Any actions by a firm to eliminate competition and gain monopoly power.
    Attempted Monopolization
  4. The act of selling one or more of a company's parts, such as a subsidiary or plant; often mandated by the courts in merger or monopolization cases.
  5. An agreement under which a seller forbids a buyer to purchase product from the seller's competitors.
    Exclusive-Dealing Contract
  6. The refusal to deal with a particular person or firm by a group of competitors; prohibited by the Sherman Act.
    Group Boycott
  7. A merger between two firms that are competing in the same market.
    Horizontal Merger
  8. Any agreement that in some way restrains competition between rival firms competing in the same market.
    Horizontal Restraint
  9. A situation that exists when a small number of firms share the market for a particular good or service.
    • Market Concentration
    • For example, if the four largest grocery stores in Chicago accounted for 80 percent of all retail food sales, the market clearly would be concentrated in those four firms.
  10. The power of a firm to control the market price of its product. A monopoly has the greatest degree of _____.
    Market Power
  11. The possession of monopoly power in the relevant market and the willful acquisition or maintenance of that power, as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.
  12. A term generally used to describe a market in which there is a single seller or a limited number of sellers.
  13. The ability of a monopoly to dictate what takes place in a given market
    Monopoly Power
  14. The pricing of a product below cost with the intent to drive competitors out of the market.
    Predatory Pricing
  15. Setting prices in such a way that the two competing buyers pay two different prices for an identical product or service.
    Price Discrimination
  16. an agreement between competitors in which the competitors agree to fix the prices of products or services at a certain level; prohibited by the Sherman Act
    Price-Fixing Agreement
  17. An agreement between a manufacturer and a retailer in which the manufacturer specifies the minimum retail price of its products. ____ are illegal per se under the Sherman Act.
    Resale Price Maintenance Agreement
  18. Any contract or combination that tends to eliminate or reduce competition, effect a monopoly, artificially maintain prices, or otherwise hamper the course of trade and commerce as it would be carried on if left to the control of natural economic forces.
    Restraint on Trade
  19. A test by which a court balances the positive effects (such as economic efficiency) of an agreement against its potentially anticompetitive effects. In antitrust litigation, many practices are analyzed under the ____.
    Rule of Reason
  20. An agreement between a buyer and a seller in which the buyer of a specific product or service becomes obligated to purchase additional products or services from the seller.
    Tying Arrangement
  21. the acquisition by a company at one stage of production of a company at a higher or lower stage of production (such as its supplier or retailer).
    Vertical Merger
  22. Any restraint on trade created by agreements between firms at different levels in the manufacturing and distribution process.
    Vertical Restraint
  23. A firm that carries out two or more functional phases such as manufacture, distribution, retailing of a product.
    Vertically Integrated Firm
Card Set
Business Law
Antitrust Law
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