MODULE 22 FEDERAL SECURITIES ACTS AND t i

ANTITRUST LA W h s
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r i
41. (c) Forms lO-K (annual reports) and lO-Q e n
(quarterly c
reports) must be filed with the SEC. Forms 10- i o
K containing s r
financial statements must be audited by r
independent public a e
accountants. However, this is not true of Forms c
lO-Q which t
cover the first three fiscal quarters of each fiscal r
year of the e b
issuer. The financial statements in 10-Qs must a e
be reviewed s c
by public accountants. o a
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42. (b) When certain material events take place, a s
such as b e
a change in corporate control, the corporation l
covered under e P
the 1934 Act must file Form 8-K, a current a
report, with the p t
SEC within four days after the material event o m
occurs. An- s a
swer (a) is incorrect because Burk Corporation s n
must file i
Forms lO-K, annual reports, and Forms lO- b d
Q,.quarterly re- i o
ports, whether or not a material event has taken l e
place. An- i s
swer (c) is incorrect because there is no such t
exception pro- y n
vided. Answer (d) is incorrect because Rules o
504, 505, and t t
506 under Regulation D apply to the initial h
issuance of se- a
curities under the Securities Act of 1933 and do t h
not relieve a
Burk Corporation from the filing requirements c v
with the SEC o e
under the 1934 Act. m
p t
43. (c) Government creation of monopoly status e o
t
through a patent is permissible under the i s
antitrust law as t h
long as no other anticompetitive conduct is i o
involved, Loop o w
Corporation is, therefore, entitled to sell the n
micropencil at a a
price determined by the normal competitive m c
forces of supply a t
and demand. A patent grants the holder a y u
twenty-year ex- a
clusive right to market the product. The twenty b l
years starts e
at the application date. For design patents, the i
period is a n
fourteen years. Answer (a) is incorrect because d j
prohibiting v u
the retailers from selling competing products is e r
an exclusive r y
dealing agreement which is illegal where the s
effect is to e t
substantially lessen competition in that market. l o
Answer (b) y
is incorrect because tying agreements involving c
patented o
products are illegal per se if a substantial a m
amount of business f p
is involved. Answer (d) is incorrect because f e
imposing a e t
minimum resale price on the retailers is a c i
vertical price fix- t t
ing agreement which is also illegal per se. e i
d o
44. (b) The R~binson-Patman Act prohibits
. n
price dis-
;
crimination in interstate commerce of
A
commodities of like
n P
grade and quality. A violation of the act exists if
s a
the effect
w t
of the price discrimination may be to
e m
substantially lessen
r a
competition or tend to create a monopoly.
n
Therefore, all that
(
Patman must do to maintain a suf~cient legal
a m
action is to
) u
allege that due to Robinson's pricing activities
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t 1
1
show that such discrimination may substantially 9
lessen com-
petition. Answer (c) is incorrect because
Congress pur-
posely adopted the Robinson-Patman Act to
prevent unilat-
eral price determination which has the resultant
effect of
les ening competition or tending to create a
monopoly. An-
swer (d) is incorrect because the reasonableness
of the prices
charged is irrelevant. The issue is whether the
price dis-
crimination may substantially lessen
competition or tend to
create a monopoly.