Asked by Tatiana Magno on May 06, 2024
Verified
Which of the following is an injunctive power used by the courts to remedy civil antitrust violations in extreme cases?
A) An order requiring the convicted defendant to divest itself of the stock or assets of acquired companies
B) An order in the form of a dissolution degree that requires the defendant to liquidate its assets and cease business operations
C) An order requiring the convicted defendant to divorce itself from a function level of its operations
D) An order requiring the convicted defendant to cancel existing contracts
Injunctive Power
The authority granted to courts to issue injunctions—orders requiring a party to do or abstain from doing specific acts.
Antitrust Violations
Acts that infringe upon laws designed to promote competition and prevent monopolies and other activities that restrict trade.
- Distinguish between various antitrust enforcement mechanisms and remedies such as injunctions, consent decrees, and criminal penalties.
Verified Answer
NM
Nastaran MoghtaderMay 11, 2024
Final Answer :
B
Explanation :
The federal courts have broad injunctive powers to remedy civil antitrust violations.Courts may order convicted defendants to divest themselves of the stock or assets of acquired companies,to divorce themselves from a functional level of their operations (e.g. ,ordering a manufacturer to sell its captive retail outlets),to refrain from particular conduct in the future,and to cancel existing contracts.In extreme cases,courts may also enter a dissolution decree ordering a defendant to liquidate its assets and cease business operations.
Learning Objectives
- Distinguish between various antitrust enforcement mechanisms and remedies such as injunctions, consent decrees, and criminal penalties.
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