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Business Law I Essentials

Assessment Questions

Business Law I EssentialsAssessment Questions


All of the following are forms of restraint of trade that company might use to reduce competition except:

  1. Monopolies.
  2. Oversupply.
  3. Price-fixing.
  4. Mergers.

What is a Business Trust?


Distinguish between naked restraint and ancillary restraint.


What was the first antitrust law enacted?.

  1. The Clayton Act.
  2. The Federal Trade Commission Act.
  3. The Antitrust Act.
  4. The Sherman Act.

What was the original purpose of antitrust legislation?


What recourse does the FTC have if an individual or company engages in an unfair trade practice?

  1. Consent order.
  2. Administrative complaint.
  3. Litigation.
  4. All of the above.

Each state has its own Antitrust law.

  1. True.
  2. Fasle.

Which of the following is not prohibited by the Sherman Act?

  1. Temporary limited restraints.
  2. Temporary restraints.
  3. Naked restraints.
  4. Ancillary restraints.

Which of the following are possible penalties for violation of the Sherman Act?

  1. Up to $100 million for corporations and individuals.
  2. Up to $100 million for individuals.
  3. Up to $100 millions for corporations.
  4. None of these are correct.

Which of the following are considered illegal by the Clayton Act?

  1. Price discrimination.
  2. Exclusive dealing contracts.
  3. Corporate mergers.
  4. All of the above.

The following are exempt from antitrust laws:

  1. Small businesses.
  2. Coops.
  3. Labor unions.
  4. Agriculture groups even if they engage in restraint of trade.

When was the Federal Trade Commission established?

  1. 1912.
  2. 1914.
  3. 1916.
  4. 1920.

The following are bureaus of the Federal Trade Commission except:

  1. Bureau of Unfair Trade Practices.
  2. Bureau of Consumer Protection.
  3. Bureau of Competition.
  4. Bureau Economics.

What is the mission of the Bureau of Competition?


Explain the Wheeler-Lea Act.

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