Which of the following is true about the Sherman Act? A) Liability under Section

Question

Which of the following is true about the Sherman Act?

A) Liability under Section I for restraint of trade requires agreement with another party, but liability under Section 2 for monopolization does not.

B) Liability under the Section 2 for monopolization requires agreement with another party, but liability under Section I for restraint of trade does not.

C) Liability under either Section I or Section 2 requires agreement with another party.

D) A business can be liable under either Section I or Section 2 without any agreement with another party.

Explanation / Answer

According to Sherman Act:

A) Liability under Section I for restraint of trade requires agreement with another party, but liability under Section 2 for monopolization does not.

A Section 1 violation has three elements:

(1) an agreement;

(2) which unreasonably restrains competition; and

(3) which affects interstate commerce.

A Section 2 monopolization violation has two elements:

(1) the possession of monopoly power in the relevant market; and

(2) the willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.

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