The chain of Mega Hardware stores agreed with Lock Tight Manufacturing not to carry any brand of locks and door handles other than those manufactured by Lock Tight. Mighty Lock threatened to sue for antitrust violations. On what basis and under what statute(s) would Mighty Lock sue?
Mighty Lock would sue Mega Hardware for violation of antitrust laws because of Mega Hardware and Lock Tight's use of an exclusive dealing contract. Under Section 1 of the Sherman Act and Section 3 of the Clayton Act, exclusive dealing contracts are subject to a rule of reason and are illegal only if they have an anticompetitive effect.
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Briefly discuss monopolistic competition
What will be an ideal response?
Romano Corporation has computed the following unit costs for the year just ended: Direct material used$11 Direct labor 17 Variable manufacturing overhead 21 Fixed manufacturing overhead 23 Variable selling and administrative cost 5 Fixed selling and administrative cost 27 Under absorption costing, each unit of the company's inventory would be carried at:
A. $72. B. $104. C. $49. D. $54. E. None of the answers is correct.
The owner of a lost credit card is: A) liable for all purchases made by its finder if the card was lost through negligence
B) not liable for any purchases if the card was lost despite the exercise of reasonable care by the cardholder. C) liable for all purchases if the card originally had been sent to the cardholder without any prior request and never was used by such holder. D) not liable for more than $50 for the unauthorized use of the card.
Commercial paper is issued by
A. all firms. B. large firms with excellent credit ratings. C. the federal government. D. small firms with excellent credit ratings.