Question

The ___________ Act prohibits contracts, combinations, and conspiracies in restraint of trade.

a. Robinson-Patman
b. Federal Trade Commission
c. Sherman Antitrust
d. Clayton

Answer 1

The Sherman Antitrust Act is the law that prohibits contracts, combinations, and conspiracies in restraint of trade. It was introduced in 1890 to combat monopolies like Standard Oil and paved the way for subsequent antitrust legislation such as the Clayton Antitrust Act and further enforcement by the Federal Trade Commission.

Step-by-step explanation:

The Sherman Antitrust Act is the correct answer to the question: The ___________ Act prohibits contracts, combinations, and conspiracies in restraint of trade. This act, passed in 1890, was the first federal statute to limit cartels and monopolies, and it has played a fundamental role in maintaining competition and regulating anti-competitive practices in the marketplace.

As a historical example of its strength, in 1911, the U.S. Supreme Court enforced the Act to dismantle Standard Oil's monopoly, which controlled 90% of oil refining, breaking it into multiple independent entities including Exxon, Mobil, Amoco, and Chevron. Furthermore, the Clayton Antitrust Act of 1914 expanded upon the Sherman Act to curb other monopolistic behaviors such as mergers and acquisitions, price discrimination, and exclusive dealings, with the enforcement help of the Federal Trade Commission (FTC). The Sherman Antitrust Act prohibits contracts, combinations, and conspiracies in restraint of trade. It was passed in 1890 as the nation's first antitrust law. An example of the law's effectiveness was when the U.S. Supreme Court broke up Standard Oil in 1911, which had controlled about 90% of the country's oil refining.

Answer 2

The Clayton Antitrust Act of 1914 prohibits anticompetitive practices such as mergers and acquisitions that substantially reduce competition in the marketplace. It supports fair trade by also preventing price discrimination and tied sales, and enables the FTC and the Department of Justice to administer and enforce antitrust laws.

Step-by-step explanation:

The Clayton Antitrust Act is a piece of legislation that was enacted in 1914 with the aim of promoting fair competition and preventing anticompetitive practices in the marketplace. This act prohibits contracts, combinations, and conspiracies in restraint of trade, addressing issues like price discrimination, tied sales, and exclusive dealings. In conjunction with the Sherman Antitrust Act, the Clayton Act helped lay the foundation for U.S. antitrust policy, further empowering the Federal Trade Commission (FTC) and the Department of Justice to enforce antitrust laws.

The Celler-Kefauver Act of 1950 extended these provisions, targeting vertical and conglomerate mergers that could potentially lessen competition in any given industry. These regulatory measures are crucial in maintaining a competitive economy and preventing the formation of monopolies and trusts.

vFinal answer:

The Clayton Antitrust Act of 1914 prohibits anticompetitive practices such as mergers and acquisitions that substantially reduce competition in the marketplace. It supports fair trade by also preventing price discrimination and tied sales, and enables the FTC and the Department of Justice to administer and enforce antitrust laws.

Step-by-step explanation:

The Clayton Antitrust Act is a piece of legislation that was enacted in 1914 with the aim of promoting fair competition and preventing anticompetitive practices in the marketplace. This act prohibits contracts, combinations, and conspiracies in restraint of trade, addressing issues like price discrimination, tied sales, and exclusive dealings. In conjunction with the Sherman Antitrust Act, the Clayton Act helped lay the foundation for U.S. antitrust policy, further empowering the Federal Trade Commission (FTC) and the Department of Justice to enforce antitrust laws.

The Celler-Kefauver Act of 1950 extended these provisions, targeting vertical and conglomerate mergers that could potentially lessen competition in any given industry. These regulatory measures are crucial in maintaining a competitive economy and preventing the formation of monopolies and trusts.