Egt1 Task 3

Topics: Monopoly, Regulation, Cartel Pages: 3 (795 words) Published: July 3, 2013
Antitrust Laws

There are 4 major acts created that are known as the Antitrust Laws. In the 1870’s and 1880’s, the Sherman Act of 1890 was created. This act made monopolies and conspiracies that tried controlling trade a criminal offense. This act exists with 2 provisions, the 1st is that every contract, blending in the form of a trust or otherwise, or attempt to conspiracy, in limit of trade or market among several States, or with distant nations is acknowledged to be unlawful.” nd

The 2 states a person intending to control, attempting to control, or collaborating with others to control any part of the trade and/or market among numerous states, or with distant nations, will be assumed guilty of a crime (later amended from “misdemeanor”) (McConnell, 2012).

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)

The Federal Trade Commission Act of 1914 (created by the 5 member Federal Trade Commission (FTC), has joint Federal accountability with the U.S. Justice Department for imposing/enforcing the antitrust laws. The FTC has the power to investigate, scrutinize any unfair competitive practices on its own initiative or by requests of wrongly affected firms. It has...
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