Question

Provide four specific actions the Clayton Act covers and provide an example of each: BE SPECIFIC.

Answer 1

Answer:

The Clayton Act is the renowned legislation passed by the United States Congress in 1914. This act was introduced in the United States to prevent anti-competitive or unethical business practices, such as price-fixing and monopolies.

The four specific actions under the Clayton Act their meaning and Examples are as follows:

1. Action against anticompetitive price discrimination:

Section 2 of the Clayton Act deals with this action. The large firms that make their monopolies by engaging in discriminatory pricing can be sued under this provision.

Example: Standard Oil had a monopoly and was engaging in discriminatory pricing. This practice of Standard Oil was condemned.

      2, Action against certain tying and exclusive dealing practices:

           

Section 3 of the Act deals with this action. Under this provision, action can be bought against the companies that restrict their buyers from buying goods from a competitor.

Example: A. B. D. Company was tying arrangements with other companies for buying similar goods and was declared not restricted to do so.

       3. Action against anticompetitive mergers:

Section 7 of the Act deals with this action. Under this provision, mergers are unlawful if they create a monopoly in the market or make it easier for the other firms in the market to fix prices.

Example: A merger was prohibited between two manufactures of baby food. As there were only three manufacturers in the market-leading to healthy competition and low prices of baby food. The merger can cause low competition in the market as only two manufacturers will be left after the merger and the prices will increase.

4. Action brought by private parties :

Section 4 of the Act deals with this action. Under this provision, any person injured by any act forbidden under this Antitrust Act can bring suit in any district courts of the United States.

Example: A private person or a businessman in the United States of America who has been injured due to any act of any company or person which is forbidden under the provisions of this Antitrust Act can bring suit against the wrongdoer in any of the district courts of United States.

"If you liked the answer please give an Up-vote, this will be quite encouraging for me, thank you!"