The So-Called Rule of Reason, Based on the 1920 U

question 148

Multiple Choice

The so-called rule of reason, based on the 1920 U.S. Steel case, stipulates that a merger of two firms in an industry is

• A) illegal if the firms are large.
• B) illegal because it increases the monopoly power of the resulting firm.
• C) legal if there is no resulting unreasonable restraint of trade.
• D) legal because the firm will be subject to regulatory control.

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Definitions:

Tokenism

The practice of publicly making small concessions to a minority group in order to deflect accusations of prejudice and discrimination.

Token of Good Faith

An action or item provided to show sincerity and intention to engage in a deal or relationship honestly.

Scapegoat

Individual or group that becomes the target for anger and frustration caused by a different individual or group or some other set of circumstances.

Frustration-Aggression Hypothesis

A psychological theory proposing that aggression is often the result of blocking, or frustrating, a person's efforts to attain a goal.