CPP Regulatory Framework & Compliance 5

Question 1

Which U.S. statute specifically prohibits bid rigging and price fixing in public procurement as criminal violations?

Accepted Answer

Sherman Antitrust Act Section 1

Answer

Robinson-Patman Act

Answer

Clayton Act Section 3

Answer

FTC Act Section 5

Question 2

A pricing manager receives a call from a competitor's sales director asking about planned price changes for next quarter. The correct response is to:

Accepted Answer

Immediately terminate the conversation and report it to legal counsel

Answer

Share general pricing trends but not specific numbers

Answer

Discuss only publicly available pricing information

Answer

Redirect the conversation to discuss industry cost pressures

Question 3

Transfer pricing regulations enforced by the IRS require multinational companies to price intercompany transactions using which standard?

Accepted Answer

Arm's length standard

Answer

Cost-plus 15% markup

Answer

Market basket pricing method

Answer

Weighted average cost of capital

Question 4

Which of the following best describes 'algorithmic collusion' as a regulatory concern in digital markets?

Accepted Answer

Competing firms' pricing algorithms independently converging on supracompetitive prices without explicit agreement

Answer

Using AI to detect and report price-fixing by competitors

Answer

An algorithm that automatically matches the lowest advertised competitor price

Answer

Dynamic pricing that adjusts in real time based on customer demand signals

Question 5

Under the EU Omnibus Directive (2022), retailers must display a reference price in promotional offers based on:

Accepted Answer

The lowest price charged in the 30 days prior to the promotion

Answer

The manufacturer's suggested retail price

Answer

The average market price across all EU member states

Answer

The price at which at least 50% of units were sold

Question 6

A company selling medical devices to hospitals offers loyalty rebates tied to the hospital achieving 90% of its purchases from that company. This arrangement may raise antitrust concerns under:

Accepted Answer

Clayton Act Section 3 for exclusive dealing or tying

Answer

Sherman Act Section 1 for horizontal price fixing

Answer

Robinson-Patman Act for promotional allowances

Answer

FTC Act for deceptive advertising

Question 7

In a compliance training context, the 'antitrust compliance tone at the top' principle most directly refers to:

Accepted Answer

Senior leadership visibly championing legal compliance in competitive behavior including pricing

Answer

Setting price floors approved by the CEO

Answer

Establishing a top-level price committee to approve all strategic pricing decisions

Answer

Requiring board approval for any price changes exceeding 5%