Question

What was the remedy in the Standard oil and American Tobacco cases?

a. They ended in consent decrees
b. The two firms were broken up in divestitures
c. The two firms had to pay damages to injured parties, but were allowed to continue operations without being broken up
d. The two firms did not admit guilt, but they did agree to stop their monopolistic practices
e. The two firms were nationalized by the government

Group of answer choices

2.

In the Staples Case, the FTC blocked the merger with Office Depot because

a.   the Alcoa precedent applied
b. the combined Staples/Office Depot firm would have been too large
c. the merger would have raised office supply prices
d.   there were interlocking directors in the merger
e. the firms would have practiced price discrimination if they merged

3.What happened to U.S. antitrust policy following the E.C. Knight case?
a. the Justice Department began a vigorous antitrust enforcement campaign
b. antitrust laws were limited to manufacturing firms
c. antitrust laws could no longer be applied to manufacturing companies
d. just about all merger activity stopped
e. firms could no longer use the “Rule of Reason” in their defense

4.

In the Pabst Brewing case, the court agreed that beer was sold in regional markets. Because of this

a.   Pabst Brewery was acquitted (i.e., found not guilty) of antitrust charges
b. Pabst Brewery was found guilty of being a regional monopolist
c. Pabst Brewery was not guilty because beer was not subject to the Sherman or Clayton Acts
d.   Pabst was found not guilty because of its small market share in the national beer market

Answer 1

1. Option B

The Supreme Court ordered the company to dissolve in 1911 on the same day that it ordered the Standard Oil Trust to dissolve.

2. Option C

The FTC proved that "there is a reasonable probability that the proposed merger will substantially impair competition in the sale and distribution of consumable office supplies to large business-to-business customers," the judge wrote, according to The Wall Street Journal. The FTC filed suit in December, arguing that allowing the two companies to combine would likely lead to higher prices of office supplies, particularly for big businesses. Staples tried to negotiate, but the commission wasn't having it.

3. Option C

In Chief Justice Melville Fuller's majority opinion, the Court held that Congress could not regulate manufacturing, thus giving state governments the sole power to take legal action against manufacturing monopolies.

4. Option D

It would seem fantastic to assume that part of the concentration in the beer industry has not been due to mergers but even if the Government made no such proof, it would not aid Pabst.