In the Text Case United States V

question 37

Multiple Choice

In the text case United States v.Apple,Inc. ,which discussed whether Apple's agreement with five of the six major publishers in the United States setting higher prices for releases on Apple's "iBookstore violated antitrust laws,resulted in which ruling on appeal?

• A)The court ruled that the agreement was a horizontal price-fixing conspiracy and thus a violation of the Sherman Act.
• B)The court,relying on Verizon Commc'ns Inc.v.Law Offices of Curtis V.14 Trinko,ruled that the publishers had engaged in a horizontal price fixing conspiracy but that Apple was not liable because the price fixing was at a different level of competition.
• C)The court ruled that the newness of the market and few competitors necessitated some sort of price fixing to encourage efficiency in the market.
• D)The court ruled that because the agreement was within a statutory exemption to antitrust laws,it was not illegal and Apple had not violated the Sherman Act.
• E)The court ruled that the agreement was a technically a horizontal price-fixing conspiracy but not a violation of the Sherman Act because the presence of a strong competitor justifies such an arrangement the "strong competitor exemption").

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Definitions:

Manager Responsibility

The obligation of managers to plan, control, and make decisions that align with the strategic objectives and financial performance of the organization.

Transfer Pricing

Pricing transactions internally within a company, especially across borders, for goods, services, or use of property between related entities.

Profit Centres

Profit centres are separate business units or departments within a company that are responsible for generating their own revenue and profit, evaluated on their financial performance.

Controllable Costs

Expenses that can be directly influenced or managed by a specific level of management or decision maker within a given timeframe.