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Business English Exercises
 

Monopoly

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Home > Teaching Business English > Business English Lessons, Advanced Level # 276
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According to Cornell University Law School, trusts and monopolies are concentrations of wealth in the hands of a few.

Correct answer: (c) concentrations

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Such conglomerations of economic resources are thought to be injurious to the public and individuals because such trusts minimize, if not obliterate normal marketplace competition, and yield undesirable price controls.

Correct answer: (d) obliterate

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501 Business English Exercises — Printable, photocopiable.
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These, in turn, cause markets to stagnate and sap individual initiative.

Correct answer: (b) sap

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To prevent trusts from creating restraints on trade or commerce and reducing competition, Congress passed the Sherman Act in 1890.

Correct answer: (d) restraints

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The Sherman Act is the main source of antitrust law.

Correct answer: (a) antitrust

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The Sherman Act is a Federal statute and as such has a scope limited by Constitutional constraints on the Federal government.

Correct answer: (d) statute

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The commerce clause, however, allows for a very wide interpretation and application of this act.

Correct answer: (b) for

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The Sherman Act applies to all transactions and business involved in interstate commerce.

Correct answer: (c) interstate

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Most if not all states have comparable laws prohibiting monopolistic conduct, price fixing agreements, and other acts that constrain trade having strictly local impact.

Correct answer: (c) impact

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The Massachusetts Act reads: it shall be unlawful for any person engaged in commerce, to make a sale of goods on the condition that the purchaser thereof shall not deal in the goods of a competitor of the seller, where the effect of such sale or such condition may be to lessen substantially competition or tend to create a monopoly in any line of trade.

Correct answer: (c) engaged

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