ETH/321T: Ethical And Legal Topics In Business - Week 5 Midterm Exam 100% Well Answered.
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Course
ETH 321
Institution
ETH 321
Luanicorp wants to increase its profitability. It agrees with another company, Wescorp, to divide the market so that all customers north of a state line must come to one company for services, and all customers south of the state line must go to the other. The companies will then be free the deal wi...
ETH/321T: Ethical And Legal Topics In
Business - Week 5 Midterm Exam 100%
Well Answered.
Luanicorp wants to increase its profitability. It agrees with another company, Wescorp, to divide the
market so that all customers north of a state line must come to one company for services, and all
customers south of the state line must go to the other. The companies will then be free the deal with
their customers as they wish. Which of the following is true of this situation? - Answer This is Illegal per
se
Determine which type of merger has occurred for this scenario.
GrillerTech manufactures propane grills for cooking. It wants to form a merger with Tinseltech, a party
favor manufacturing company. This would be a __________ merger. - Answer Conglomerate
Identify the trade-restraining practice that this example demonstrates.
Tubifor, Inc. purchases all available imported lumber so it can resell it at a quantity and rate that it
prefers. - Answer Price Fixing
Government agencies generally have power to do all but which of the following? - Answer Create a
new agency in order to address important goals under the mandate of the law which created the agency
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. - Answer Illegal Boycott
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. - Answer Impossible to determine legality based on the
information provided
Decide the legality of the company's decision or action in the following situation:
, Vericorp wants to increase its profitability. It rearranges its distribution services so that it can serve
customers in certain areas better, while leaving other areas where competitors are stronger unattended.
The company makes no agreement with a competitor in doing so. Which of the following is true of this
action? - Answer This may be illegal under the rule of reason
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. - Answer Controlling output
Blinkorp is selling toys to retailers across the nation. Depending on the season, the company may make
its toys with either higher-cost domestic plastics or lower-cost foreign plastics. The retailers who
purchase from Blinkorp complain about the different prices caused by the differently-priced materials.
Which of the following is true? - Answer Blinkorp is justified in charging different prices because of the
differing production costs
Millitech is a sports equipment manufacturer. It wants to form a merger with an athletic wear company.
This would be a __________ merger - Answer Market extension
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? - Answer the agency does not need to invite public opinion on the information it will
post
Identify the trade-restraining practice that this example demonstrates.
Company A and Company B discuss average industry prices. - Answer No illegal practice
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?
- Answer This is legal
Flippatech is a home furnishings manufacturer. It wants to form a merger with SleepzCorp, another
home furnishings manufacturer. This would be a __________ merger. - Answer Horizontal
For the scenario below, determine the legality of the company's actions.
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