Question

The Celler-Kefauver Antimerger Act of 1950:________.

a. made interlocking directorates illegal.
b. banned anticompetitive mergers that occurred as a result of one company acquiring the physical assets of another company.
c. attempted to decrease the failure rate of small businesses by protecting them from the competition of large and growing chain stores.
d. both a and b
e. all of the above

Answer 1

b. banned anticompetitive mergers that occurred as a result of one company acquiring the physical assets of another company.

Step-by-step explanation:

• The Sailor-Kefauver Act was a United States federal law passed in 1950 that amended and strengthened the Clayton Antitrust Act of 1914, which amended the Sherman Antitrust Act of 1890.
• The Sailor-Kefauver Act was passed to eliminate a loophole to link firms to the acquisition and acquisition of assets that are not direct competitors.
• The Clayton Act prohibited stock purchase mergers, the competition was reduced, and smarter traders were able to find ways to buy competitive property around the Clayton Act. Under the Sailor-Kefauver Act, asset acquisition competition decreases, and that practice is banned.