Social Dynamo Corporation earned profits last year of $49 million on sales of $500 million. During the same period, its major competitorEIO Corporationenjoyed sales of $490 million and earned profits of $52 million. Currently, Social Dynamo is negotiating a deal in which it would acquire the assets of EIO in a transaction Wall Street values at $120 million. A successful merger between the two companies is expected to raise prices in the market by 2 percent.

True or false: Social Dynamo is obligated to notify the U.S. Justice Department and the Federal Trade Commission of its merger intentions.

multiple choice 1

True

False

What law details whether a firm must disclose its merger intentions to the U.S. Justice Department and the Federal Trade Commission?

multiple choice 2

Cellar-Kefauver Act

Robinson-Patman Act

Clayton Act

Hart-Scott-Rodino Antitrust Act