Which of the Following Is the Objective of the Rule

question 60

Multiple Choice

Which of the following is the objective of the rule of reason rule?

• A) To determine whether the requirements of the per se rule have been satisfied.
• B) To determine whether, on balance, the activity at issue promotes or restrains competition.
• C) To determine whether in a particular situation a horizontal price fixing has actually harmed consumers.
• D) To determine if providers of a good acted reasonably in engaging in a boycott.

---

Definitions:

Celler-Kefauver Act

A United States antitrust law passed in 1950, aimed at prohibiting certain types of corporate mergers and acquisitions that reduce competition.

Antitrust Laws

Legislation (including the Sherman Act and Clayton Act) that prohibits anticompetitive business activities such as price fixing, bid rigging, monopolization, and tying contracts.

Interlocking Directorates

The practice of sharing board members among different companies, which can lead to conflicts of interest and anticompetitive behavior.

Sherman Act

A foundational antitrust law in the United States, enacted in 1890, aimed at preventing anti-competitive practices, monopolies, and cartels.