Question

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to the _____.

1) Sherman Antitrust Act
2) Federal Communications Act
3) Trade Commission Act
4) Food, Drug, and Cosmetics Act
5) Robinson-Patman Act

Answer 1

The Webb-Pomerene Act of 1918 exempted American business firms from the Sherman Antitrust Act for export activities, amidst a historical era of legislation aimed at curbing monopolistic practices, including the Sherman Antitrust Act itself and later the Clayton Antitrust Act and the creation of the FTC.

Step-by-step explanation:

The Webb-Pomerene Act of 1918 allowed American business firms to collaborate in export activities without being subject to the restrictions of the Sherman Antitrust Act. This was significant due to the historical context of antitrust laws in the United States. The Sherman Antitrust Act, passed in 1890, was designed to combat anticompetitive practices such as monopolies and trusts, exemplified by the breakup of Standard Oil in 1911.

Further legislation aimed at enforcing fair competition included the Clayton Antitrust Act of 1914, which addressed issues of mergers and acquisitions, price discrimination, and tied sales, as well as creating the Federal Trade Commission (FTC) for more specific oversight of unfair competitive practices. The Celler-Kefauver Act in 1950 then extended the Clayton Act, addressing vertical and conglomerate mergers.