Question

Congress passed the Sherman Antitrust Act to a. encourage the formation of more cartels. b. tax business profits. c. keep industries from cutting off competition. d. end child labor in factories.

Answer 1

The correct answer is:

c. keep industries from cutting off competition.

The Sherman Antitrust Act proposed by Senator John Sherman from Ohio is a landmark in 1890 in the U.S. legislation wh ich outlawed any combination of companies that restrained interstate trade or commerce. This prohibition applies not only to formal cartels but also to any agreement to fix prices, limit industrial output, share markets, or exclude competition. The Sherman Antitrust Act forms the foundation and the basis for most federal antitrust litigation.