Colorado, Being Home to Many Microbreweries, Has Established an Alcohol

question 24

Multiple Choice

Colorado, being home to many microbreweries, has established an alcohol distributorship that controls all distribution of beer within the state. Breweries in the surrounding states have complained to the FTC about this, complaining that Colorado has established a monopoly on the beer distribution market in that state that is harming their business. Will their complaints result in Colorado being assessed a violation of Section 2 of the Sherman Act?

• A) Yes, because they have established a horizontal restraint on trade.
• B) Yes, because they have created a monopoly.
• C) Yes, if it can be shown they have engaged in predatory pricing.
• D) No, unless it can be shown they actively intended to create a monopoly.
• E) No, because states are exempt from Section 2 of the Sherman Act.

---

Definitions:

Prejudiced Attitude

A preconceived opinion that is not based on reason or actual experience, often directed towards people or groups based on characteristics such as race, sex, or religion.

Overcompensation

A psychological behavior where an individual attempts to make up for a perceived deficiency or weakness by emphasizing another trait or engaging in a different behavior excessively.

Postformal Thought

A stage of cognitive development beyond Piaget’s formal operational stage, characterized by the understanding that truth can vary based on context and that logic can be integrated with emotion.

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood which encompasses late teenage years into the twenties.