Answer:
What Is the Clayton Antitrust Act?
The Clayton Antitrust Act is a piece of legislation passed by the U.S. Congress in 1914. The act defines unethical business practices, such as price-fixing and monopolies, and upholds various rights of labor. The Federal Trade Commission (FTC) and the Antitrust Division of the U.S. Department of Justice (DOJ) enforce the provisions of the Clayton Antitrust Act, which continue to affect American business practices today.
KEY TAKEAWAYS
The Clayton Antitrust Act, passed in 1914, continues to regulate U.S. business practices today.
Intended to strengthen earlier antitrust legislation, the act prohibits anticompetitive mergers, predatory and discriminatory pricing, and other forms of unethical corporate behavior.
The Clayton Antitrust Act also protects individuals by allowing lawsuits against companies and upholding the rights of labor to organize and protest peacefully.
There have been several amendments to the act, expanding its provisions.
Explanation:Understanding the Clayton Antitrust Act
At the turn of the 20th century, a handful of large U.S. corporations began to dominate entire industry segments by engaging in predatory pricing, exclusive dealings, and mergers designed to destroy competitors.
In 1914, Rep. Henry De Lamar Clayton, of Alabama, introduced legislation to regulate the behavior of massive entities. The bill passed the House of Representatives with a vast majority on June 5, 1914. President Woodrow Wilson signed the initiative into law on Oct. 15, 1914.
The act is enforced by the FTC and prohibits exclusive sales contracts, certain types of rebates, discriminatory freight agreements, and local price-cutting maneuvers. It also forbids certain types of holding companies. According to the FTC, the Clayton Act also allows private parties to take legal action against companies and seek triple damages when they have been harmed by conduct against the Clayton Act. They may also seek and get a court order against any future anticompetitive practice.