The Clayton Antitrust Act is an amendment passed by U.S. Congress in 1914 that provides further clarification and substance to the Sherman Antitrust Act of 1890 on topics such as price discrimination, price fixing and unfair business practices. You just studied 8 terms!
What did the Clayton Act do quizlet?
The Clayton Act prohibits anticompetitive mergers, tying arrangements, and exclusive dealing agreements . The Robinson-Patman Act bans price discrimination that reduces competition.
What is the purpose of the Clayton Act?
The newly created Federal Trade Commission enforced the Clayton Antitrust Act and prevented unfair methods of competition . Aside from banning the practices of price discrimination and anti-competitive mergers, the new law also declared strikes, boycotts, and labor unions legal under federal law.
What are the four main points of the Clayton Antitrust Act?
The principal provisions of the Clayton Act, which is far more detailed than the Sherman Act, the law it was meant to supplement, include (1) a prohibition on anticompetitive price discrimination; (2) a prohibition against certain tying and exclusive dealing practices; (3) an expanded power of private parties to sue ...
Who did the Clayton Antitrust Act benefit?
Organized labor was heartened by the passage of the Clayton Antitrust Act, a major win for the millions of American union members. The act continued to benefit workers in later years, serving as the basis for a great many important pieces of pro-labor legislation against large corporations.
What was the result of the Sherman Antitrust Act?
The Sherman Antitrust Act—proposed in 1890 by Senator John Sherman from Ohio—was the first measure passed by the U.S. Congress to prohibit trusts, monopolies, and cartels . The Sherman Act also outlawed contracts, conspiracies, and other business practices that restrained trade and created monopolies within industries.
What led to the Clayton Antitrust Act?
The US Congress passed the bill in June 1914, and President Woodrow Wilson later signed it into law. The Clayton Antitrust Act sought to address the weaknesses in the Sherman Act by expanding the list of prohibited business practices that would prevent a level playing field for all businesses .
What did the Chinese Exclusion Act do quizlet?
The 1882 Chinese Exclusion Act was the nation’s first law to ban immigration by race or nationality . The act, which was renewed and enforced until 1943, banned Chinese immigration and prohibited Chinese from becoming citizens.
What was a difference between the Sherman and 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 did the Interstate Commerce Act ban 1887 quizlet?
What did the Interstate Commerce Act ban in 1887? ... the Interstate Commerce Act. According to the key provisions of the Sherman Antitrust Act, trusts and monopolies were: illegal and could be broken up .
Which of the following is not a violation of the Clayton Act?
Which of the following IS NOT a violation of the Clayton Act? Price discrimination . Incorrect. This is a violation of the Clayton Act.
What happens if you violate the Clayton Act?
Since the Clayton Act and the Federal Trade Commission Act are civil statutes, those convicted of violating these laws do not receive prison time. Instead, they may be forced to pay fines and damages .
What are the three major antitrust laws?
- the Sherman Act;
- the Clayton Act; and.
- the Federal Trade Commission Act (FTCA).
How did the Clayton Antitrust Act help regulate the economy?
The Clayton Antitrust Act helped regulate the economy by prohibiting business monopolies .
What does the Clayton Act prohibit?
Section 7 of the Clayton Act prohibits mergers and acquisitions where the effect “may be substantially to lessen competition, or to tend to create a monopoly.” As amended by the Robinson-Patman Act of 1936, the Clayton Act also bans certain discriminatory prices, services, and allowances in dealings between merchants.
Was the Clayton Antitrust Act effective?
The Clayton Antitrust Act was much more effective than the earlier Sherman Antitrust Act and gave the government the power to protect both competition and consumers by restricting certain unhealthy business practices.
