Which Statement Is False

question 29

Multiple Choice

Which statement is false?

• A)The 1961 electrical machinery anti-trust case is an example of covert collusion.
• B)Two of the companies involved in the electrical machinery case were charged with price fixing on turbine generators 11 years after being convicted of price fixing and illegal market-sharing.
• C)The conviction of high-ranking company executives in the 1961 electrical machinery case effectively ended covert conspiracies in this country.
• D)In 1996 the Archer Daniels Midland Company pleaded guilty and paid a $100 million criminal fine for its role in two international conspiracies to fix prices and eliminate competition in the lysine and citric acid markets.

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Definitions:

Voidable Contracts

Agreements that may be legally rejected or enforced by one or more parties, often due to elements like misrepresentation or lack of capacity.

Stare Decisis

“Standing by the decision” a principle stating that rulings made in higher courts are binding precedent for lower courts.

Watered Stock

Stock that is issued to individuals below its fair market value.

Fair Market Value

The price a willing buyer would pay a willing seller in a transaction where both parties have reasonable knowledge of the relevant facts and neither is under compulsion to act.