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ETH 321T Week 5 Apply Assignment

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ETH 321T Week 5 Apply Assignment 

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ETH 321 Week 5 Apply Assignment

  1. Identify the trade-restraining practice that this example demonstrates.

Two retailers decide that they will both sell no more than 100 premium TVs per month in order to maintain the quality image of the TVs.

  • Illegal boycott
  • Controlling output
  • No illegal practice
  • Price fixing
  • Division of markets

 

  1. Millitech is a sports equipment manufacturer. It wants to form a merger with an athletic wear company. This would be a __________ merger.
  • Conglomerate
  • Vertical
  • Market extension
  • Horizontal

 

  1. Identify the trade-restraining practice that this example demonstrates.

Company A and Company B both work in the candy industry. They agree that Company A will only sell chocolate to Company C and Company B will only sell fruit candies to Company C.

  • Division of markets
  • Price fixing
  • Illegal boycott
  • Controlling output
  • No illegal practice

 

  1. Identify the trade-restraining practice that this example demonstrates.

Company A and Company B discuss average industry prices.

  • Division of markets
  • Price fixing
  • No illegal practice
  • Illegal boycott
  • Controlling output

 

  1. A government agency which administers rules concerning clean housing projects wants to specify and explain the language it uses to communicate with the public and enforce its statutes. Which of the following is true?
  • The agency must hold a public comment period for the public to weigh in on the impact and details of the statute.
  • The agency must have a public hearing where it explains the statutory language it uses.
  • The agency does not need to invite public opinion on the information it will post.

 

  1. Gilcorp wants to increase its profitability. It tries to gain new customers by offering a cash bonus to customers who switch to its service from another company. Which of the following is true of this action?
  • This may be illegal under the rule of reason.
  • This is illegal per se.
  • This is legal as long as no agreements are made with a competitor.
  • This is legal.

 

  1. For the scenario below, determine the legality of the company's actions.

Ioncorp sells cabinets nationwide to the furniture company Blinkorp. It makes an agreement that Blinkorp will only sell Ioncorp cabinets in its warehouses.

  • Strictly illegal
  • Impossible to determine legality
  • Most likely legal
  • Illegal, depending on impact

 

  1. Identify the trade-restraining practice that this example demonstrates.

The CEOs of two pharmaceutical companies are having lunch. They discuss the unfair costs of ordering from a manufacturer that supplies to both companies. The CEOs decide that they will no longer work with the unfair pricing of the manufacturer.

  • Division of markets
  • Illegal boycott
  • No illegal practice
  • Controlling output
  • Price fixing

 

  1. For the scenario below, determine the legality of the company's actions.

Wreckorp wants to maintain an exclusivity image for its product line of sports equipment. It limits its distribution to 100 stores in each region.

  • Most likely legal
  • Impossible to determine legality
  • Illegal, depending on impact
  • Strictly illegal
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