The Sherman Antitrust Act
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 is the difference between the Sherman Antitrust Act and the Clayton Antitrust Act?
Whereas the Sherman Act only declared monopoly illegal, the Clayton Act defined as illegal certain business practices that are conducive to the formation of monopolies or that result from them. ...
What was the Sherman Antitrust Act quizlet?
-Passed in 1890, the Sherman Antitrust Act was the first major legislation passed to address oppressive business practices associated with cartels and oppressive monopolies. The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade .
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 .
Is the Sherman Antitrust Act still in effect?
Q: Is the Sherman Antitrust Act still in force? ... A: Although it may not be invoked as much as you think appropriate, yes, the Sherman and Clayton antitrust acts remain in force today.
What is the purpose of Sherman Antitrust Act?
Congress passed the first antitrust law, the Sherman Act, in 1890 as a “ comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade .” In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act, which created the FTC, and the Clayton ...
What are the three major antitrust laws?
- the Sherman Act;
- the Clayton Act; and.
- the Federal Trade Commission Act (FTCA).
How successful was the Sherman Antitrust Act?
For more than a decade after its passage, the Sherman Antitrust Act was invoked only rarely against industrial monopolies, and then not successfully . Ironically, its only effective use for a number of years was against labor unions, which were held by the courts to be illegal combinations.
What was the goal of the Sherman Antitrust Act quizlet?
– The major purpose of the Sherman Antitrust Act was to prohibit monopolies and sustain competition so as to protect companies from each other and to protect consumers from unfair business practices .
What was the effect of the Sherman Antitrust Act quizlet?
What was the chief effect of the Sherman Antitrust Act? The federal government won the power to prevent monopolies and mergers that interfered with trade between states .
Why did the government passed the Sherman Antitrust Act quizlet?
Terms in this set (6)
Congress passed this law to prohibit monopolies which had grown rapidly. ... It was passed by John Sherman because it was to stop monopoly businesses .
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 antitrust violations?
Violations of laws designed to protect trade and commerce from abusive practices such as price-fixing, restraints, price discrimination, and monopolization.
Why are antitrust laws bad?
It shouldn’t be illegal to buy out another company if a fair price is being paid. 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.
Why are monopolies banned in the US?
Competitors may be at a legitimate disadvantage if their product or service is inferior to the monopolist’s. But monopolies are illegal if they are established or maintained through improper conduct , such as exclusionary or predatory acts.
