The objectives and impact of the sherman antitrust act enacted in the late 1800s
Antitrust Acts include: The Sherman Antitrust Act of the first major legislation passed by Congress to address the oppressive business practices of the late s. Here is an overview of the three core federal antitrust laws.
Sherman antitrust act quizlet
What Are Antitrust Laws? Many states have passed their own legislation regulating business entities. This offense is rarely charged alone, because a conspiracy to monopolize is also a combination in restraint of trade, which violates section one of the Sherman Act. Antitrust Laws in Action — Breakup of Standard Oil While charges of violations of the antitrust laws are file and prosecuted every day, a few examples stand out due to their scope and the legal precedents they set. Posner, Richard A. The Clayton Act was the first federal statute expressly prohibiting certain forms of price discrimination. Under the act, it is immaterial whether the fixed prices are set at a maximum price, a minimum price, the actual cost, or the fair market price.
Section 2 addresses the end results that are by their nature anti-competitive. Generally, most courts have found that horizontal boycotts, but not vertical boycotts, are per se illegal.
Sherman antitrust act define
Its prohibition of the cartel was also interpreted to make illegal many labor union activities. The rule of reason is said to be the "traditional framework of analysis" to determine whether Section 1 is violated. Such competition, it is concluded, will result in the best allocation of our economic resources, the lowest prices, the highest quality, and the greatest material progress. United States, U. The Sherman Act outlaws "every contract, combination, or conspiracy in restraint of trade," and any "monopolization, attempted monopolization, or conspiracy or combination to monopolize. The Robinson-Patman Act of amended the statutes within the Clayton Act that related to price discrimination. Sherman was able to pursue his revenge motive by combining it with the broader Republican goals of preserving high tariffs and attacking the trusts. A Section 2 monopolization violation has two elements:  1 the possession of monopoly power in the relevant market; and 2 the willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.
The Court ordered Standard Oil broken up into 90 smaller, independent companies with different directors. All of these acts attempt to prohibit anticompetitive practices and prevent unreasonable concentrations of economic power that stifle or weaken competition. Consumers, workers, farmers, and other suppliers were directly hurt monetarily as a result of the monopolizations.
Arrangements to sell one product or service, only on the condition that a different product or service is also purchased.
Section 1 defines and bans specific means of anticompetitive conduct. Under the act, it is immaterial whether the fixed prices are set at a maximum price, a minimum price, the actual cost, or the fair market price. Horizontal price-fixing agreements include agreements among sellers to establish maximum or minimum prices on certain goods or services.
A company and its employees are considered an individual entity for the purposes of this act. Congress to restrict unfair or monopolistic trade practices.
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