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

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

Explanation: The Celler-Kefauver Antimerger Act of 1950 was passed by the U.S. Congress banning anticompetitive mergers that occurred as a result of one company acquiring the physical assets of another company. It therefore, prohibited mergers and acquisition from creating monopolies, or otherwise significantly competition in the country. Previous antitrust laws only applied to outstanding equity, rather than the assets of the target corporation thus leading to their circumvention – the Celler-Kefauver Act of 1950 helped eliminate this work-around.