What did Clayton Antitrust Act do?
The newly created Federal Trade Commission enforced the Clayton Antitrust Act and prevented unfair methods of competition. Aside from banning the practices of price discrimination and anti-competitive mergers, the new law also declared strikes, boycotts, and labor unions legal under federal law.
What is the Clayton Antitrust Act in simple terms?
The Clayton Antitrust Act is a piece of legislation passed by the U.S. Congress in 1914. The act defines unethical business practices, such as price-fixing and monopolies, and upholds various rights of labor.
What did the Clayton Antitrust Act exempt?
Unlike the Sherman Act, the Clayton Antitrust Act exempts labor unions and agricultural activities from their regulations. According to the law, the labor of a human being does not constitute a trade or a commodity, and should not be subject to the same regulations as companies engaging in trade.
What are some of the characteristics of the Clayton Antitrust Act quizlet?
The Clayton Antitrust Act attempts to prohibit certain actions that lead to anti-competitiveness. Outlaws price discrimination, prohibits tying contracts, prohibits stock acquisition of competing corporations, prohibits the formation of interlocking directorates (director of one firm, is board member on another firm).
What was the purpose of the Clayton Antitrust?
The purpose of the Clayton Antitrust Act was to revise and strengthen the 1890 Sherman Antitrust Act and clearly define unfair business practices. It was designed to prevent greedy corporations from taking advantage of consumers and small businesses.
What was the first antitrust law in the US?
The first federal antitrust law was the Sherman Antitrust Act of 1890, sponsored by United States Senator John Sherman of Ohio. The Clayton Act is an amendment to the Sherman Act.
Who was president when the Clayton Act was passed?
Senator Henry Clayton of Alabama introduced the Clayton Antitrust Bill to the US Congress in 1914. The US Congress passed the bill in June 1914, and President Woodrow Wilson later signed it into law.
What was the significance of the Sherman Antitrust Act?
Sherman Antitrust Act. One of these was the Clayton Antitrust Act, which elaborated on the general provisions of the Sherman Act and specified many illegal practices that either contributed to or resulted from monopolization.