Question

What was the major purpose of the Sherman Antitrust Act (1890) and the Clayton Antitrust Act (1914)?

Answer 1

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. The Act focuses on topics such as price discrimination, price fixing, and unfair business practices.

Answer 2

During the end of the 1800s and the beginning of 1900s, the US suffered a lot with anti-competitive practices between businesses that harmed consumers and harmed competition in the industry. To avoid cartels, monopolies, and trusts the Congress passed two acts.

The Sherman Antitrust Act was passed in 1890 and aimed to avoid cartels and oppressive monopolies, it prohibited trusts, contracts or conspiracies that restrained trade and created penalties.

The Clayton Act was passed in 1914 and aimed to enforce the Sherman Antitrust Act and it regulated the practices that were important to competition and designed mechanisms to prevent trusts issues.