What is the Celler-Kefauver Act?

What was the Sherman Antitrust Act quizlet?

-Passed in 1890, the Sherman Antitrust Act was the first major legislation passed to address oppressive business practices associated with cartels and oppressive monopolies. The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade.

Why was the Clayton Act of antitrust passed?

The US Congress passed the bill in June 1914, and President Woodrow Wilson later signed it into law. The Clayton Antitrust Act sought to address the weaknesses in the Sherman Act by expanding the list of prohibited business practices that would prevent a level playing field for all businesses.

What does the Clayton Act do?

The newly created Federal Trade Commission enforced the Clayton Antitrust Act and prevented unfair methods of competition. Aside from banning the practices of price discrimination and anti-competitive mergers, the new law also declared strikes, boycotts, and labor unions legal under federal law.

What is the Celler-Kefauver Act?

What is Section 15 of the Clayton Act?

whether such person or the opposing party, or either party’s representative, engaged in conduct primarily for the purpose of delaying the litigation or increasing the cost thereof.

What is an antitrust violation?

Violations of laws designed to protect trade and commerce from abusive practices such as price-fixing, restraints, price discrimination, and monopolization.

What is Sherman Antitrust Act example?

The Sherman Antitrust Act was implemented at a time when there was growing hostility against companies that were seen to be monopolizing specific markets. Examples of such companies include the American Railway Union and Standard Oil that merged and acquired their smaller competitors to form conglomerates.

What is Section 12 of the Clayton Act?

Antitrust is one area of law where Congress provided specific statutory venue and jurisdiction provisions for corporate defendants. Section 12 of the Clayton Act authorizes special venue and service of process provisions for all antitrust plaintiffs against corporate defendants.

How did the Celler-Kefauver Act CK Act affect the nation’s antitrust policy?

The CK Act strengthened the nation’s policy toward predatory pricing by clarifying that pricing lower than marginal cost was an antitrust violation.

What is Section 2 of the Sherman Act?

Section 2 of the Sherman Act makes it unlawful for any person to “monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations . . . .”

What is the Clayton Act an example of?

The Clayton Antitrust Act is an antitrust law in the United States codified in 1914, which prevents in its infancy the trade practices that are unfair and harmful to the competitiveness of markets.

How does the FTC enforce antitrust laws?

The Commission enforces various antitrust laws under Section 5(a) of the FTC Act as well as the Clayton Act. The FTC monitors all its orders to ensure compliance. The FTC conducts regular reviews of all its rules and guides on a rotating basis to make sure they are up-to-date, effective, and not overly burdensome.

What type of law is the Sherman Antitrust Act?

Approved July 2, 1890, The Sherman Anti-Trust Act was the first Federal act that outlawed monopolistic business practices. The Sherman Antitrust Act of 1890 was the first measure passed by the U.S. Congress to prohibit trusts.

Is the Sherman Antitrust Act still in effect?

A: Although it may not be invoked as much as you think appropriate, yes, the Sherman and Clayton antitrust acts remain in force today.

What is Sherman Act and Clayton Act?

Whereas the Sherman Act only declared monopoly illegal, the Clayton Act defined as illegal certain business practices that are conducive to the formation of monopolies or that result from them.

What does the Robinson Patman Act prohibit?

Robinson-Patman Act, in full Robinson-Patman Act of 1936, also called Anti-Price Discrimination Act, U.S. law enacted in 1936 that protects small businesses from being driven out of the marketplace by prohibiting discrimination in pricing, promotional allowances, and advertising by large franchised companies.

Did the Sherman Antitrust Act work?

For more than a decade after its passage, the Sherman Antitrust Act was invoked only rarely against industrial monopolies, and then not successfully. Ironically, its only effective use for a number of years was against labor unions, which were held by the courts to be illegal combinations.

How did Roosevelt use the Sherman Antitrust Act?

The Sherman Anti-Trust Act Now that he was President, Roosevelt went on the attack. The President’s weapon was the Sherman Antitrust Act, passed by Congress in 1890. This law declared illegal all combinations “in restraint of trade.” For the first twelve years of its existence, the Sherman Act was a paper tiger.

What does the Sherman Antitrust Act prohibit?

Definition. The Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace. The Sherman Act was amended by the Clayton Act in 1914.

Who does Robinson-Patman protect?

Section 3 of the Robinson-Patman Act authorizes the government to seek criminal penalties against any entity that knowingly discriminates against a competitor of a purchaser or charges “unreasonably low prices” or different prices in a different part of the United States “for the purpose of destroying competition or …

What is Section 7 of the Clayton Act?

The section of the Clayton Antitrust Act prohibiting mergers, acquisitions, and certain joint ventures where the effect may be to substantially lessen competition.

What is an example of the Robinson-Patman Act?

For example, the Robinson-Patman act requires that if Wholesale Company ABC sells two 32-inch flat-screen televisions of equal quality one to Target on August 10 and one to Mom and Pop’s Shop on August 11 both stores must be charged $250 per television.

What happens if you violate antitrust?

Individual violators can be fined up to $1 million and sentenced to up to 10 years in Federal prison for each offense, and corporations can be fined up to $100 million for each offense. Under some circumstances, the maximum fines can go even higher than the Sherman Act maximums to twice the gain or loss involved.

What are the four major provisions of the Clayton Act?

The principal provisions of the Clayton Act, which is far more detailed than the Sherman Act, the law it was meant to supplement, include (1) a prohibition on anticompetitive price discrimination; (2) a prohibition against certain tying and exclusive dealing practices; (3) an expanded power of private parties to sue …

Was the Clayton Act successful?

The Clayton Antitrust Act was much more effective than the earlier Sherman Antitrust Act and gave the government the power to protect both competition and consumers by restricting certain unhealthy business practices.

What violates the Clayton Act?

Prohibited Actions under the Clayton Act Exclusive Dealings: requiring a buyer or seller to do buy or sell all or most of a certain product from a single supplier such that competitors are unable to compete in the market. Price Discrimination: selling similar goods to buyers at different prices.

How did the Clayton Antitrust Act benefit labor?

The Clayton Act declared that unions were not unlawful under the Sherman Anti-Trust provisions, and workers compensation bills were passed in most states. Union contracts also resulted in shorter days, giving workers some leisure hours often for the first time in their lives.

Who does the Clayton Act protect?

The 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.

What is the purpose of the Robinson-Patman Act quizlet?

The Robinson-Patman Act is an amendment to the Clayton Act, which outlaws price discrimination that might substantially lessen competition or tends to create a monopoly. This exception allows a seller in good faith to meet the equally low price, service, or facility of a competitor.

What is the Sherman Antitrust Act in simple terms?

The Sherman Antitrust Act is a law the U.S. Congress passed to prohibit trusts, monopolies, and cartels. Its purpose was to promote economic fairness and competitiveness and to regulate interstate commerce. Ohio Sen. John Sherman proposed and passed it in 1890.