SOLVED

31) Mergers most likely pose antitrust danger because they have the potential to________. A) facilitate interorganizational channel management B) interfere with interstate and foreign commerce C) require tying arrangements with downstream intermediaries D) require firms to engage in illegal block booking activities E) limit the supply of products to downstream channel members 32) Which term refers to marketing arrangements in which manufacturers reach end-users by employing multiple channels for the same basic product? A) Dual distribution B) Price squeezing C) Internal expansion D) Vertical integration E) External expansion 33) A dual distribution strategy is most likely illegal if ________ is involved. A) category management B) price squeezing C) internal expansion D) vertical integration E) external expansion 34) When a supplier uses a market coverage policy of channel management, the main focus of the channel is ________. A) corporate mergers B) customer coverage C) full-line forcing D) geographic spacing E) price segmentation 35) Both market coverage and customer coverage channel policies are governed by ________. A) internal expansion agreements B) price maintenance doctrines C) rule-of-reason criteria D) functional discounts E) per se criteria 36) Which of the following involves a promise by a downstream channel member that it will not sell outside its assigned territory? A) Profit pass-over arrangement B) Primary responsibility C) Block exemption D) Absolute confinement E) Free riding 37) Company X and Company Y are both distributors for ABC Widgets, and each firm has been given a specific territory by ABC. Company X recently sold an ABC product to a customer located in Company Y’s territory. As a result, Company X must reimburse Company Y for the sale. Which term best describes this situation? A) Profit pass-over arrangement B) Primary responsibility C) Block exemption D) Absolute confinement E) Dual distribution 38) Which of the following specifies the site of a channel member’s place of business? A) Profit pass-over arrangement B) Primary responsibility C) Block exemption D) Location clause E) Dual distribution 39) A seller has been accused of price discrimination. Which of the following would be the LEAST effective defense? A) A price is equally available to all customers but is not chosen by all customers. B) A pricing policy was carried out to dispose of perishable or obsolete goods. C) A price was charged to undercut a rival and significantly affected competition. D) The price is lawful and not produced by collusion. E) Competition takes place at the primary level. 40) Which of the following is most likely a true statement about slotting allowances? A) Slotting allowances are predominant in grocery retailing. B) Slotting allowances are considered per se illegal in all circumstances. C) Most U.S. manufacturers file formal complaints about slotting allowances. D) Large firms tend to pay a higher percentage of slotting allowances than small firms. E) Slotting allowances violate the Colgate doctrine when used as price discrimination tools. 41) When a supplier and a downstream channel member agree to exclusive distributorship and absolute confinement, a territory is considered airtight. 42) Vertical restraints, such as territorial restrictions, are intended to limit interbrand competition and promote intrabrand competition. 43) Functional discounts are legal when they reasonably reflect the supplier’s savings or channel member’s costs. 44) The Tampa Electric Co. v. Nashville Coal Co. case established guidelines for assessing exclusive dealing policies. 45