Question

Explain briefly the following three laws that define the U.S government’s approach to antitrust? The Sherman, Clayton, and Federal Trade Commission Acts.

Answer 1

The sherman antitrust act is the first legislation enacted by the united states congress to remove the concentrations of power that deals with the trade and reduce economic competition. The act was named after the U.S senator Jhon Sherman of Ohio, who was an expert in commerce. The Sherman act is intended to reduce all the illegal attempts that monopolize the any part of trade or commerce in the United States. The firms found in violation with the actcan be ordered dissolved by the courts, and injuctions to prohibit illegal practices can be issued. The violations of this act are punishible by fines and imprisonment.

The Clayton antitrust act passed in 1914, and it was enacted by the congress to strengthen the antitrust laws that is put forward by the Sherman act. The Clayton act provided more detailed provisions to prohibit anti competitive price discrimination. This act kept corporations and companies from making exclusive dealing practices and expanded the ability for the individuals to sue for damages. This act also allowed unions to organize and prevented the anticompetitive mergers. The clayton act addresses corporate price discrimination. This will prevent companies from enagaging in predatory pricing.

The Fedreral Trade commission act was signed by the Woodrow wilson in 1914, this acts prevents unfair competition methods and unfair acts that may affect the business commerce. This actb was related to the opperssive monopolies and anti-trust issues in the country.