Final answer:
The Sherman Antitrust Act of 1890 banned the formation of trusts and monopolies in the United States, aiming to promote fair competition and prevent abuse of market power.
Step-by-step explanation:
The 1890 law that banned the formation of trusts and monopolies in the United States is known as the Sherman Antitrust Act. This law aimed to promote fair competition and prevent the abuse of market power.
For example, if a company had a monopoly over a certain industry, it could set high prices and limit consumer choices. The Sherman Antitrust Act aimed to prevent such practices by breaking up monopolies and promoting competition.
This law played a crucial role in shaping American business and economics, and it continues to be an important tool in regulating anticompetitive behavior.
Learn more about Sherman Antitrust Act