Antitrust Law. series of law intended to promote abundant, fair competition in the marketplace . -illegal monopolies, pricing schemes, product distribution networks, mergers. -details anticompetitive behaviors that are illegal.
What is the purpose of the antitrust law?
The FTC’s competition mission is to enforce the rules of the competitive marketplace — the antitrust laws. These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices.
What are the 3 antitrust laws?
Antitrust laws were designed to protect and promote competition within all sectors of the economy. The Sherman Act, the Federal Trade Commission Act and the Clayton Act are the three pivotal laws in the history of antitrust regulation.
What are antitrust laws designed to do quizlet?
What is the purpose of antitrust laws? Antitrust laws were designed to maintain and preserve business competition .
What are antitrust laws?
Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition . Antitrust laws are applied to a wide range of questionable business activities, including market allocation, bid rigging, price fixing, and monopolies.
What is an example of an antitrust violation?
Another example of an antitrust violation is collusion . For example, three companies manufacture and sell widgets. They charge $1.00, $1.05, and $1.10 for their widgets. If these three companies plan and agree to all charge $1.15 for widgets, they’re likely in violation of antitrust laws.
What are the four major antitrust laws?
The main statutes are the Sherman Act of 1890, the Clayton Act of 1914 and the Federal Trade Commission Act of 1914 .
What is the purpose of antitrust laws quizlet?
The purpose of antitrust law is to reduce competition . Any activity that substantially affects interstate commerce falls outside the scope of antitrust laws. Market power is the ability of a firm to enter a given market. A price-fixing agreement that is reasonable does not violate antitrust law.
Are antitrust laws good or bad?
Antitrust Makes Mergers And Acquisitions Difficult
There is nothing wrong with an organization increasing in size. ... By preventing mergers and acquisitions, antitrust laws impede the most efficient arrangement of capital. These laws protect inefficient managers at the cost of the greater economic good.
Which of the following is a violation of antitrust laws?
Violations of the Sherman Antitrust Act include practices such as fixing prices, rigging contract bids, and allocating consumers between businesses that should be competing for them . Such violations constitute felonies. As such, they may be punished with heavy fines or prison time.
What is the Sherman Antitrust Act in simple terms?
Definition. The Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace . The Sherman Act was amended by the Clayton Act in 1914.
What do antitrust laws prevent?
Antitrust laws protect competition. Free and open competition benefits consumers by ensuring lower prices and new and better products. In a freely competitive market, each competing business generally will try to attract consumers by cutting its prices and increasing the quality of its products or services.
When was the most aggressive period of antitrust enforcement?
5 Perhaps the most significant change in antitrust jurisprudence occurred in the 1970s when stringent antitrust enforcement triggered a backlash that transformed law and policy.
How do antitrust laws protect the free market quizlet?
Antitrust laws protect consumers from: Selling products above cost to drive away rivals . Anti-competitive practices by business.
What replaced the Sherman Antitrust Act?
The Sherman Antitrust Act of 1890 was proposed by John Sherman from Ohio and was later amended by the Clayton Antitrust Act . The Sherman Antitrust Act prohibited trusts and outlawed monopolistic business practices, making them illegal in an effort to bolster competition within the marketplace.
What are the two goals of antitrust policy?
The goal of the antitrust laws is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace . Competition in a free market benefits American consumers through lower prices, better quality and greater choice.
