54.) Arvin, Inc. developed a new product so revolutionary that Arvin soon controlled 85 percent of the market. The Justice Department sued Arvin for violating the Sherman Act. Arvin's best defense would be

A. the rule of reason.

B. the thrust-upon defense.

C. conscious parallelism.

55.) Calvin's Corner Market, a national chain of grocery stores, was charged with price discrimination under the Robinson-Patman Act. Which of the following defenses may protect Calvin's from liability?

A. Calvin's charged lower prices because the merchandise was damaged.

B. The price differences were based on legitimate cost differentials.

C. All of the above are valid defenses under the Robinson-Patman Act.

D. None of the above are valid defenses under the Robinson-Patman Act.

E. (a) and (b) only.

F. (b) and (c) only.

56.) Ace produced and sold all types of household cleaning supplies except bleach. Ace decided to add bleach to its product line by purchasing Kleen, the largest bleach producer in the country. If the government challenges this acquisition as a prohibited merger, what argument will the government be most likely to use?

A. Ace was a potential entrant into the bleach market.

B. The merger is a prohibited vertical merger.

C. The merger is a prohibited horizontal merger.

57.) If a store advertises a particular product at a very attractive price, and then tries to talk prospective buyers of that product into buying a more expensive brand or style when the customers enter the store, the store would appear to be guilty of

A. palming off goods.

B. an unfair trade practice.bait and switch advertising.

C. false advertising.

D. discrimination.

59.) The government, in a number of monopolization cases over the years, has used the Sherman Act quite successfully, beginning with ___________________________ decided in 1911.

A. Standard Oil Co. v. United States

B. United States v. E.I. DuPont de Nemours and Co.

C. American Needle, Inc v. National Football League

D. None of the above

60.) The ___________________ case is a landmark opinion, involved an allegation of price discrimination and a defense of meetingbut not beatingthe competition.

A.Standard Oil Co. v. United States

B. United States v. E.I. DuPont de Nemours and Co.

C. Standard Oil Co. (of Indiana) v. FTC

D. None of the above