Preview

Pros And Cons Of The Clayton Antitrust Act

Satisfactory Essays
Open Document
Open Document
259 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pros And Cons Of The Clayton Antitrust Act
The Clayton Antitrust Act,
It was passed in 1914, proscribes certain additional activities that had been discovered to fall outside the scope of the Sherman Antitrust Act. For example, the Clayton Act added certain practices to the list of impermissible activities:
a. Price discrimination between different purchasers, if such discrimination tends to create a monopoly
b. Exclusive dealing agreements
c. Tying arrangements
d. Mergers and acquisitions that substantially reduce market competition.
EUROPEN UNION COMPETITON LAW:
Article 82 of the EU competiton law also deals with the aspects of abuse of dominant position and predatory pricing.it states that “any abuse by one or more undertakings of a dominant position within the common market or in

You May Also Find These Documents Helpful

  • Good Essays

    Mkc1 Study Guide

    • 8079 Words
    • 33 Pages

    When a group of retailers and wholesalers of a particular product decided to all raise prices together and they are accused of overpricing customers. Which federal law allowed the United States to investigate this anti- competitive method ?…

    • 8079 Words
    • 33 Pages
    Good Essays
  • Good Essays

    In the 1950 case of P. Lorillard Co. v. Federal Trade Commission, P. Lorillard Co., the makers of Old Gold cigarettes, were ordered to “cease and desist from making certain representations found to be false in the advertising of its tobacco products (Warner, et al., 2012, p. 950) From a practical perspective in the 1950’s caveat emptor, or “let the buyer beware” is not a fair or reasonable expectation. While the careful consumer could have looked at the article, the culture of the time was not anti-smoking as it is today. The careful consumer at the time was not savvy to the wealth of scientific data regarding smoking and health. The actual ad, see Figure 1: 1942 WW2 Era Old Gold Santa Cigarette Ad, states that the impartial tests were not done to boost sales or claim superiority of brand. The ad misleads the consumer to believe that it was impartially discovered that Old Gold had the stated attributes.…

    • 602 Words
    • 3 Pages
    Good Essays
  • Good Essays

    18e Key Question Answer

    • 505 Words
    • 3 Pages

    Sherman Act: Section 1 prohibits conspiracies to restrain trade; Section 2 outlaws monopolization. Clayton Act (as amended by Celler-Kefauver Act of 1950): Section 2 outlaws price discrimination; Section 3 forbids tying contracts; Section 7 prohibits mergers which substantially lessen competition; Section 8 prohibits interlocking directorates. The acts are enforced by the Department of Justice, Federal Trade Commission, and state attorneys general. Private firms can bring suit against other firms under these laws.…

    • 505 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    In the late nineteenth century, the United States of America saw companies flourish. Advances in technology greatly increased output and lowered costs of many goods; people were also making more money and the nation was truly prospering. Due to the booming economy, a great deal of changes occurred. Companies started to grow at a faster rate, and soon there were enormous companies that seemed to rule their individual industries. It quickly became apparent that some firms were monopolizing the industries, making prices higher and lessening the competitiveness of the market. Many companies were also fixing prices, forcing other businesses to pay ridiculous amounts since they had no other options.…

    • 1747 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The Dodd-Frank Reform The financial crisis of 2008 created one of the most uncertain times in the United States’ economy history. Not only did it affect thousands of businesses, but also consumer’s confidence dropped to levels not seen since the great depression. After the failure to address the issues created by the banks, the economy took a turn for the worse. The only way to move the economy forward was to bailout those banks and businesses that were essential to the US economy.…

    • 1644 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    As an amendment to the Clayton Antitrust Act, the Robison-Patman Act originated as a result of price fixing and biased preferential treatment by suppliers to specific members of their client base. Suppliers looking to aid in the development or expansion of a favored supplier may provide better prices than other customers of the same purchasing rate and quality, per the Federal Trade Commission, “This kind of price discrimination may give favored customers an edge in the market that has nothing to do with their superior efficiency” (Federal Trade Commission, n.d.). The Act penalizes suppliers for this anti-competitive behavior, thus deters future organizations from conducting themselves in this manner. According to the American Bar Association,…

    • 576 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    DiLorenzo believed the Sherman Antitrust act was “ Protectionist at its roots” (pg141). The government was using this so that incompetent businesses would be protected. According to Dilorenzo there was no proof that monopolies were hurting the country. In fact , there was a deflation during the late 19th century , prices were decreasing which would benefit consumers . The Sherman Act support came from less competitive firms that wanted to break up their more successful rivals. An example Dilorenzo gave was cotton farms. They were upset that jute was being used to cover cotton bales instead of cotton. They petition government to restrain jute farmers. Small firms had more power than the big ones, because if big firms had as much power as Yellow…

    • 141 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    The Clayton Antitrust Act of 1914, amended by the Robinson-Patman Act of 1936, prohibits discrimination among customers through pricing and disallows mergers, acquisitions or takeovers of one firm by another if the effect will "substantially lessen competition.…

    • 640 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The United States Department of Justice pursues cases dealing with many aspects of the United States law system. One portion that they deal with is violations with the Antitrust laws. Anti trust laws were established to help the consumers and create competition, which create lower prices for products and services (Department of Justice, 2017 ). One of the three Antitrust Acts, the Sherman Act outlaws monopolies. There are currently two cases the Justice Department is working with that deal with monopolies, AMC’s acquisition of Carmike Cinemas and Foreign Exchange Dealers coming together to commit a Conspiracy. Both cases are interesting and have everything to do with anticompetitive behaviors leading to taking over a market.…

    • 656 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The antitrust act hasn’t changed since it has been created, however the advancement of technology has made it difficult to establish which company would fall under the antitrust act. Older industries are easier to deal with because they are most likely to have a line of cases. Railroads industries for example, have been around for a long time now, which means there has been judges deciding things about it for more than a century. The problem are the technology companies, those are very contemporary making it more difficult for economists and lawyers to decide what is going against the antitrust laws and what isn’t. Furthermore, the advancement of technology has drastically increase deals between different countries. Considering this, before a deal gets approved, it has go through all the antitrust acts from all the countries involved in the deal. A very challenging and long lasting process. Antitrust acts have been around for more than a century, however it has been going through some changes to keep up with the advancements of…

    • 172 Words
    • 1 Page
    Good Essays
  • Good Essays

    Clayton Antitrust Act- 1914 declaring certain business practices illegal. A corporation could no longer acquire stock of another corporation if it would create a monopoly.…

    • 503 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    In the time period of 1763 and 1765 two acts took place, the Sugar Act and the Stamp Act. The Sugar Act all started because of a war debt that was expanding. In the Sugar Act there is a lot of pros and cons, my personal feelings on the act go both ways. The price of sugar was raised to around six pence, which is about twelve dollars for one gallon. In this time sugar was a very well-know substance just like it is today. The act was basically a way to make the trade route more difficult and more expensive. The Sugar Act is very good that was passed at the time. It also helped with watching what was going and coming through with the trade and helped with watching out for smugglers. The tax law on the sugar didn't help much with the outlook on…

    • 521 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Clayton Act of 1914, sought nothing but to simply strengthen the Sherman Act of 1890. This act, however, forbade corporations from receiving stock of others if doing so created monopolies; If an company broke the law, its officials could be tried and…

    • 693 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Anti-trust: Theodore used the “Sherman Antitrust Act”, passed by Congress in 1890. This law was illegal at all combinations “in restraint of trade.” For the first twelve years of its existence, the Sherman act was a paper tiger. The United States courts routinely sided with business when any enforcement of the Act was attempted.…

    • 886 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Egt1 Task 3

    • 795 Words
    • 4 Pages

    In 1914 the Clayton Act made it illegal for companies to be involved in certain practices, but was meant more at disassembling current monopolies. The 4 key segments within this act are proposed to accentuate the Sherman Act. The first (Section 2) made pricing discrimination unlawful when not justified on the basis of cost differences and/or it decreases competition. The second (Section 3) bans binding contracts, when a manufacturer imposes that a buyer purchases additional goods/products as a condition for procuring a desired good/product. The third (Section 7) bans the purchase of stocks of a competing business when the result would be weaken the rivalry or competition. Lastly (Section 8) bans the circumstances where a director of one business is also a board member of a competing business in an effort to reduce competition. (McConnell, 2012)…

    • 795 Words
    • 4 Pages
    Good Essays