Music and Antitrust Law

Description: This quiz tests your knowledge of antitrust law as it pertains to the music industry.
Number of Questions: 15
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Tags: music antitrust law competition
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Which of the following is not a type of antitrust law violation?

  1. Price fixing

  2. Tying

  3. Exclusive dealing

  4. Resale price maintenance


Correct Option: D
Explanation:

Resale price maintenance is a type of vertical price fixing, which is illegal under antitrust law. It occurs when a manufacturer sets a minimum price at which its products can be sold by retailers.

What is the purpose of antitrust law?

  1. To promote competition

  2. To protect consumers

  3. To regulate businesses

  4. All of the above


Correct Option: D
Explanation:

Antitrust law has three main purposes: to promote competition, to protect consumers, and to regulate businesses.

Which of the following is not an example of a horizontal antitrust violation?

  1. Price fixing

  2. Market allocation

  3. Bid rigging

  4. Tying


Correct Option: D
Explanation:

Tying is a type of vertical antitrust violation, which occurs when a seller requires a buyer to purchase one product in order to purchase another product.

What is the Sherman Antitrust Act?

  1. The first federal antitrust law in the United States

  2. A law that prohibits price fixing and other anti-competitive practices

  3. A law that regulates mergers and acquisitions

  4. All of the above


Correct Option: D
Explanation:

The Sherman Antitrust Act is the first federal antitrust law in the United States. It prohibits price fixing, market allocation, and other anti-competitive practices. It also regulates mergers and acquisitions.

Which of the following is not an example of a vertical antitrust violation?

  1. Tying

  2. Exclusive dealing

  3. Resale price maintenance

  4. Price fixing


Correct Option: D
Explanation:

Price fixing is a type of horizontal antitrust violation, which occurs when competitors agree to set prices at a certain level.

What is the Clayton Act?

  1. A law that prohibits price fixing and other anti-competitive practices

  2. A law that regulates mergers and acquisitions

  3. A law that prohibits tying and exclusive dealing

  4. All of the above


Correct Option: D
Explanation:

The Clayton Act is a law that prohibits price fixing, market allocation, and other anti-competitive practices. It also regulates mergers and acquisitions and prohibits tying and exclusive dealing.

Which of the following is not an example of an antitrust violation in the music industry?

  1. Price fixing among record labels

  2. Tying by record labels

  3. Exclusive dealing between record labels and retailers

  4. Resale price maintenance by record labels


Correct Option: D
Explanation:

Resale price maintenance is a type of vertical antitrust violation, which occurs when a manufacturer sets a minimum price at which its products can be sold by retailers. It is not an example of an antitrust violation in the music industry because record labels do not typically set minimum prices for their products.

What is the purpose of the Hart-Scott-Rodino Antitrust Improvements Act?

  1. To require companies to notify the government before they merge or acquire another company

  2. To give the government the power to block mergers and acquisitions that are anti-competitive

  3. Both of the above

  4. None of the above


Correct Option: C
Explanation:

The Hart-Scott-Rodino Antitrust Improvements Act requires companies to notify the government before they merge or acquire another company. It also gives the government the power to block mergers and acquisitions that are anti-competitive.

Which of the following is not an example of an antitrust violation in the music industry?

  1. Price fixing among streaming services

  2. Tying by streaming services

  3. Exclusive dealing between streaming services and record labels

  4. Resale price maintenance by streaming services


Correct Option: D
Explanation:

Resale price maintenance is a type of vertical antitrust violation, which occurs when a manufacturer sets a minimum price at which its products can be sold by retailers. It is not an example of an antitrust violation in the music industry because streaming services do not typically set minimum prices for their products.

What is the purpose of the Robinson-Patman Act?

  1. To prohibit price discrimination

  2. To prevent predatory pricing

  3. Both of the above

  4. None of the above


Correct Option: C
Explanation:

The Robinson-Patman Act prohibits price discrimination and prevents predatory pricing. Price discrimination occurs when a seller charges different prices to different buyers for the same product. Predatory pricing occurs when a seller sets prices below cost in order to drive competitors out of business.

Which of the following is not an example of an antitrust violation in the music industry?

  1. Price fixing among concert promoters

  2. Tying by concert promoters

  3. Exclusive dealing between concert promoters and venues

  4. Resale price maintenance by concert promoters


Correct Option: D
Explanation:

Resale price maintenance is a type of vertical antitrust violation, which occurs when a manufacturer sets a minimum price at which its products can be sold by retailers. It is not an example of an antitrust violation in the music industry because concert promoters do not typically set minimum prices for their products.

What is the purpose of the Federal Trade Commission Act?

  1. To create the Federal Trade Commission

  2. To give the FTC the power to investigate and prosecute antitrust violations

  3. Both of the above

  4. None of the above


Correct Option: C
Explanation:

The Federal Trade Commission Act creates the Federal Trade Commission and gives the FTC the power to investigate and prosecute antitrust violations.

Which of the following is not an example of an antitrust violation in the music industry?

  1. Price fixing among music publishers

  2. Tying by music publishers

  3. Exclusive dealing between music publishers and songwriters

  4. Resale price maintenance by music publishers


Correct Option: D
Explanation:

Resale price maintenance is a type of vertical antitrust violation, which occurs when a manufacturer sets a minimum price at which its products can be sold by retailers. It is not an example of an antitrust violation in the music industry because music publishers do not typically set minimum prices for their products.

What is the purpose of the Magnuson-Moss Warranty Act?

  1. To require sellers to provide warranties for their products

  2. To give consumers the right to cancel their contracts within a certain period of time

  3. Both of the above

  4. None of the above


Correct Option: C
Explanation:

The Magnuson-Moss Warranty Act requires sellers to provide warranties for their products and gives consumers the right to cancel their contracts within a certain period of time.

Which of the following is not an example of an antitrust violation in the music industry?

  1. Price fixing among music retailers

  2. Tying by music retailers

  3. Exclusive dealing between music retailers and record labels

  4. Resale price maintenance by music retailers


Correct Option: D
Explanation:

Resale price maintenance is a type of vertical antitrust violation, which occurs when a manufacturer sets a minimum price at which its products can be sold by retailers. It is not an example of an antitrust violation in the music industry because music retailers do not typically set minimum prices for their products.

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