Final answer:
The Capper-Volstead Act of 1922 was the principal legislation exempting cooperatives from antitrust laws, providing farmers with the ability to form cooperatives and collaboratively market their products without antitrust pressure. The correct option is b. Was the principal legislation exempting cooperatives from antitrust laws?
Step-by-step explanation:
The Capper-Volstead Act of 1922
The Capper-Volstead Act passed in 1922, was the principal legislation exempting cooperatives from antitrust laws. This Act has also been referred to as the "Magnuson-Moss Act" and was designed to provide farmers and agricultural producers the legal space to collaborate and collectively process, handle, and market their products without the risk of antitrust litigation.
This was particularly significant as it addressed the concerns of farmers who felt disadvantaged by powerful railroads and trusts, which often overcharged them for transportation and undermined the influence of previous regulations, such as the Interstate Commerce Act and the Sherman Antitrust Act.
Despite claims by large corporations that their mergers and consolidations, which formed trusts, had led to price reductions, there was a recognized need to protect smaller entities and maintain fair business practices. The Sherman Antitrust Act of 1890 and the Clayton Antitrust Act of 1914 were early regulatory responses to the excessive power of these trusts.
The Capper-Volstead Act came as a tailored response for agricultural cooperatives amidst a growing body of antitrust legislation. It allowed farmers to pool their resources and gain leverage in the market against larger corporate entities without fear of legal repercussions for violating antitrust laws. The correct option is b. Was the principal legislation exempting cooperatives from antitrust laws?