Fact Pattern 20-1 MicroManage Is the Fastest Growing Home-Software Producer in the Country

question 384

Multiple Choice

Fact Pattern 20-1
MicroManage is the fastest growing home-software producer in the country. In 2000, it sold 6% of all home software in the U.S., but in 2011, it sold 55% of all home software. A recent issue of Computer Universe said that MicroManage was "the most dominant and aggressive of all home-software developers." Home software is a small part of the entire software industry.
In 2011, MicroManage proposed a merger with Game Master, its main rival. Game Master was responsible for 10% of all home-software sales in 2010. MicroManage's president says that the combination of the firms will allow MicroManage to lower costs and pass the savings on to its customers.
The Department of Justice filed suit to stop this merger, claiming the combination would give monopoly power to the merged firm. Justice insists that consumers would lose in the end.
-Refer to Fact Pattern 20-1. If the MicroManage-Game Master merger is challenged as a violation of the Sherman Act, it will be challenged:

• A) on the grounds of a geographic restraint
• B) as an attempt to monopolize
• C) on the grounds that one president will be director of two companies
• D) on the grounds that a tie-in arrangement is involved
• E) none of the other choices; copyrighted software is exempt from antitrust law

---

Definitions:

Admissibility

The quality of being acceptable or valid, especially within the realm of evidence in legal proceedings, indicating whether evidence can be considered in court.

Deposed

To remove from office or power, often used in the context of legal or formal questioning to obtain testimony from a witness.

Product's Utility

The usefulness or functionality of a product in satisfying a consumer's need or want.

Unsafe Character

A term that may describe a person's disposition that poses a risk to themselves or others but is not widely used in a specific technical sense. (Assumed explanation as term is uncommon)