Question

What are the two provisions of the Sherman Anti-Trust Act? What types of actions are outlawed under each section? How are each enforced? Can the context of the actions prohibited explain differences in the patterns of enforcement?

Answer 1

Sherman Anti-Trust Act was passed by US congress in 1890 which is also known as Sherman Act that deals with any attempt to artificially inflate prices through trade or supply restrictions. The two main provisions are

a. ) Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal; and

b. ) Every person who shall 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, shall be deemed guilty of a felony

Under these provisions, any attempt to monopolize, either personally or trust or company, within the state or outside the territorial borders of United States are outlawed.

There are subtle differences between the provisions of the act. the first provision deals with trusts and outlaws conspiracy among the states or nations whilst the second one is more from individual or company related enforcement.

The purpose of the act is to protect the common consumer from monopoly practices by business houses while encouraging business to make honest profits from consumers.