The Courts Use the Rule of Reason to Decide Many

question 23

Multiple Choice

The courts use the rule of reason to decide many antitrust cases because:

• A) the courts consider the facts surrounding a case to decide if a practice hurts or helps competition
• B) it is reasonable to compare a case being tried to a previous case and use the decision from that case
• C) the courts would rather use the rule of reason than go through a detailed economic analysis
• D) all practices attacked under antitrust laws are anti-competitive and thus prohibited
• E) none of the other choices

---

Definitions:

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Ownership Test

Criteria used to determine if an individual or entity has the necessary ownership interest in a property or investment to qualify for certain tax benefits.

Personal Residence

The home in which a person or family lives as their primary place of residence, potentially qualifying for certain tax benefits.

Gain Exclusion

A provision in tax law allowing taxpayers to exclude certain types of financial gains from their taxable income, such as the sale of a primary residence.