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

question 115

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 MicroManage were to ignore the Justice challenge and go ahead and merge with Game Master, what penalties could it face?

• A) a cease and desist order
• B) MicroManage could be enjoined from further operation
• C) MicroManage could be forced to pay treble damages
• D) MicroManage could be fined up to $1 million
• E) all of the other choices

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