Question

Under the Clayton Act, a divestiture order is: a. a decision by a court requiring a defendant to sell an enterprise. b. an order by a court requiring an enterprise to dispose of its inventory. c. notification from the Department of Justice that a merger did not occur. d. notification from the Department of Justice that a merger is about to occur.

Answer 1

a. a decision by a court requiring a defendant to sell an enterprise.

Step-by-step explanation:

The Clayton Act was enacted in 1914 and was passed in order to complement the Sherman Antitrust Act of 1890. It focused on preventing monopolistic actions when they were just starting.

A divestiture means that a company is forced to sell the stock it owns from a third party corporation, e.g. if Apple bought a significant amount of Samsung's stocks, and they were forced to sell them.