The purpose of the FTC
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. Its principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive bu…
Clayton Antitrust Act of 1914
The Clayton Antitrust Act of 1914, was a part of United States antitrust law with the goal of adding further substance to the U.S. antitrust law regime; the Clayton Act sought to prevent anticompetitive practices in their incipiency. That regime started with the Sherman Antitrust Act of 1890, the first Federal law outlawing practices considered harmful to consumers. The Clayton Act specifi…
What did the Clayton Antitrust Act do Quizlet?
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 history of antitrust law?
Congress passed the first antitrust law, the Sherman Act, in 1890 as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade." In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act, which created the FTC, and the Clayton Act.
Does the Clayton Act apply to trade unions?
Like the Sherman Act, much of the substance of the Clayton Act has been developed and animated by the U.S. courts, particularly the Supreme Court . Since the Sherman Antitrust Act of 1890, courts in the United States had interpreted the law on cartels as applying against trade unions.
How is the Clayton Act enforced by the government?
The Clayton Act is enforced by the Federal Trade Commission (FTC) and the Department of Justice (DOJ). Many of the provisions of the Clayton Act set out how the FTC or DOJ can respond to violations. Other parts of the Clayton Act are designed to proactively prevent anti-trust issues.
What was the purpose of the Federal Trade Commission and Clayton Antitrust Act quizlet?
its purpose was to prevent unfair methods of competition in commerce as part of the battle to "bust the trusts."
What was the purpose of the Sherman and Clayton Antitrust Act?
Congress passed the first antitrust law, the Sherman Act, in 1890 as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade." In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act, which created the FTC, and the Clayton ...
What is the Clayton Antitrust Act in simple terms?
Whereas the Sherman Act only declared monopoly illegal, the Clayton Act defined as illegal certain business practices that are conducive to the formation of monopolies or that result from them.
What are the four main points of the Clayton Antitrust Act?
The principal provisions of the Clayton Act, which is far more detailed than the Sherman Act, the law it was meant to supplement, include (1) a prohibition on anticompetitive price discrimination; (2) a prohibition against certain tying and exclusive dealing practices; (3) an expanded power of private parties to sue ...
What is the purpose of the Sherman Antitrust Act quizlet?
- The major purpose of the Sherman Antitrust Act was to prohibit monopolies and sustain competition so as to protect companies from each other and to protect consumers from unfair business practices.
Which of the following is the purpose of the Clayton Act?
The Clayton Act prohibits anticompetitive mergers, tying arrangements, and exclusive dealing agreements.
Who does the Clayton Act protect?
The Clayton Antitrust Act is one of several antitrust laws passed in the US. Its goal is to prevent anticompetitive behavior by businesses and protect consumers from monopolies — as well as the inflated prices monopolies can lead to.
Was the Clayton Antitrust Act successful?
The main purpose of the Clayton Antitrust Act was to make the open market more fair. The act was successful in this because it enforced the limitation on businesses of creating monopolies and anticompetitive business dealings.
What is the Clayton Act of 1914 quizlet?
The Clayton Act of 1914: outlawed price discrimination, tying contracts, acquisition of stocks of competing corporations, and interlocking directorates that lessen competition.
How did the Clayton Antitrust Act help labor unions quizlet?
How did the Clayton Antitrust Act benefit labor? Strikes, peaceful picketing, boycotts, and the collection of strike benefits became legal.
What is an example of the Clayton Act?
For example, if a consumer suffered damages worth $10,000 through a false advertisement, the consumer can sue for damages for up to $30,000. The act gives the Federal Trade Commission the power to enforce damage claims.
What are federal antitrust laws intended to prevent?
Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition. Antitrust laws are applied to a wide range of questionable business activities, including market allocation, bid rigging, price fixing, and monopolies.
Who did the Sherman Antitrust Act benefit?
The Sherman Anti-Trust Act was created to help workers and smaller businessmen by encouraging competition. While it did assist these two groups, the act eventually hindered workers in attaining better working conditions.
Who was the Sherman Antitrust Act used against?
The Sherman Antitrust Act was the first measure enacted by the U.S. Congress to prohibit trusts (or monopolies of any type). Although several states had previously enacted similar laws, they were limited to intrastate commerce.
What is the Clayton Act of 1914 quizlet?
The Clayton Act of 1914: outlawed price discrimination, tying contracts, acquisition of stocks of competing corporations, and interlocking directorates that lessen competition.
What did the Sherman Antitrust Act outlawed quizlet?
The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade.
What was the purpose of the Clayton Antitrust Act?
63–212) in a bid to curb the power of trusts and monopolies and maintain market competition.
When did Henry Clayton resign?
October 08, 1914. Image courtesy of the Library of Congress Serving nine terms in the House of Representatives, Henry Clayton of Alabama resigned from the House to serve as a federal judge. He was later appointed to the U.S. Senate, but the appointment was challenged and he withdrew. On this date, the 63rd Congress (1913-1915) ...
Who dubbed the trusts offensive organizations?
Representative Alben W. Barkley of Kentucky dubbed the trusts “offensive organizations.”. Most agreed that government regulation of the trusts was too lenient and rallied around the Clayton Antitrust Bill when Representative Henry Clayton of Alabama introduced it in 1914.
When was the price discrimination law passed?
The bill passed the House with an overwhelming majority on June 5 , 1914. President Woodrow Wilson signed it into law on October 15, 1914.
Who decried the evils of monopolies?
In Congress, Members decried the evils of monopolies, including Representative Robert Crosser of Ohio who warned that a “failure to check the growth of monopolies…will result in industrial slavery.”. Representative Alben W. Barkley of Kentucky dubbed the trusts “offensive organizations.”.
What was the Clayton Act?
Whereas the Sherman Act only declared monopoly illegal, the Clayton Act defined as illegal certain business practices that are conducive to the formation of monopolies or that result from them.
Who enforces the Clayton Act?
The Clayton Act and other antitrust and consumer protection regulations are enforced by the Federal Trade Commission. The Editors of Encyclopaedia Britannica This article was most recently revised and updated by Adam Augustyn, Managing Editor, Reference Content.
Which amendment made the Clayton Act more enforceable?
Two sections of the Clayton Act were later amended by the Robinson-Patman Act (1936) and the Celler-Kefauver Act (1950) to fortify its provisions. The Robinson-Patman amendment made more enforceable Section 2, which relates to price and other forms of discrimination among customers.
What was the Celler-Kefauver Act?
In contrast, the Celler-Kefauver Act went further by restricting even mergers of companies in different industries (i.e., conglomerate mergers).
What is the Clayton Antitrust Act?
The Clayton Antitrust Act, passed in 1914, continues to regulate U.S. business practices today. Intended to strengthen earlier antitrust legislation, the act prohibits anticompetitive mergers, predatory and discriminatory pricing, and other forms of unethical corporate behavior. The Clayton Antitrust Act also protects individuals by allowing ...
How does the Clayton Antitrust Act protect individuals?
The Clayton Antitrust Act also protects individuals by allowing lawsuits against companies and upholding the rights of labor to organize and protest peacefully. There have been several amendments to the act, expanding its provisions.
What Is the Clayton Act’s Overall Goal?
The Clayton Act, in conjunction with other antitrust laws, is responsible for making sure that companies behave themselves and that there is fair competition in the marketplace, which, according to economic theory, should lead to lower prices, better quality, greater innovation, and wider choice.
What is the Clayton Act?
In addition, the Clayton Act specifies that labor is not an economic commodity. It upholds issues conducive to organized labor, declaring peaceful strikes, picketing, boycotts, agricultural cooperatives, and labor unions were all legal under federal law. There are 26 sections to the Clayton Act.
Which agency enforces the Clayton Antitrust Act?
The Federal Trade Commission (FTC) and the Antitrust Division of the U.S. Department of Justice (DOJ) enforce the provisions of the Clayton Antitrust Act, which continue to affect American business practices today.
What is the Celler-Kefauver Act?
The Celler-Kefauver Act prohibited one company from acquiring the stock or assets of another firm, if an acquisition reduced competition. It further extended antitrust laws to cover all types of mergers across industries, not just horizontal ones within the same sector.
How did the 20th century dominate the industry?
corporations began to dominate entire industry segments by engaging in predatory pricing, exclusive dealings, and mergers designed to destroy competitors. 1
When was the Clayton Antitrust Act passed?
The Clayton Antitrust Act of 1914 ( Pub.L. 63–212, 38 Stat. 730, enacted October 15, 1914, codified at 15 U.S.C. §§ 12 – 27, 29 U.S.C. §§ 52 – 53 ), is a part of United States antitrust law with the goal of adding further substance to the U.S. antitrust law regime; the Clayton Act seeks to prevent anticompetitive practices in their incipiency.
Who introduced the Clayton Act?
During its proceedings, and in anticipation of its first report on October 23, 1914, legislation was introduced by Alabama Democrat Henry De Lamar Clayton Jr. in the U.S. House of Representatives. The Clayton Act passed by a vote of 277 to 54 on June 5, 1914. Though the Senate passed its own version on September 2, 1914, by a vote of 46–16, ...
What is the Clayton Act?
The Clayton Act made both substantive and procedural modifications to federal antitrust law. Substantively, the act seeks to capture anticompetitive practices in their incipiency by prohibiting particular types of conduct, not deemed in the best interest of a competitive market.
What was the first federal law outlawing practices that were harmful to consumers?
That regime started with the Sherman Antitrust Act of 1890, the first Federal law outlawing practices that were harmful to consumers (monopolies, cartels, and trusts). The Clayton Act specified particular prohibited conduct, the three-level enforcement scheme, the exemptions, and the remedial measures.
What was the Sherman Act?
Since the Sherman Antitrust Act of 1890, courts in the United States had interpreted the law on cartels as applying against trade unions. This had created a problem for workers, who needed to organize to balance the equal bargaining power against their employers. The Sherman Act had also triggered the largest wave of mergers in US history, ...
What is Section 8 of the Antitrust Act?
Section 8 of the Act refers to the prohibition of one person of serving as director of two or more corporations if the certain threshold values are met, which are required to be set by regulation of the Federal Trade Commission, revised annually based on the change in gross national product, pursuant to the Hart–Scott–Rodino Antitrust Improvements Act. (For example, see 74 FR 1688 .)
What amendments were passed in 1950 to protect the US from mergers and acquisitions?
This original position of the US government on mergers and acquisitions was strengthened by the Celler-Kefauver amendments of 1950, so as to cover asset as well as stock acquisitions.
What is the Sherman Antitrust Act?
Passed in 1890, the Sherman Antitrust Act was the first major antitrust legislation passed to address oppressive business practices associated with cartels and oppressive monopolies. The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade.
Who enforces the Clayton Act?
The Clayton Act is enforced by the Federal Trade Commission (FTC) and the Department of Justice (DOJ). Many of the provisions of the Clayton Act set out how the FTC or DOJ can respond to violations. Other parts of the Clayton Act are designed to proactively prevent anti-trust issues.
What is the Clayton Act?
The purpose of the Clayton Act was to give more enforcement teeth to the Sherman Antitrust Act. Passed in 1914, the Clayton Act regulates general practices that may be detrimental to fair competition. Some of these general practices regulated by the Clayton Act are price discrimination, exclusive dealing contracts, tying agreements, or requirement contracts; mergers and acquisitions; and interlocking directorates.
What is antitrust law?
It provides that no person shall commit antitrust actions such as monopolizing, attempt to monopolize, or conspire with another to monopolize interstate or foreign trade or commerce, regardless of the type of business entity.
How long can you be in jail for violating the Sherman Antitrust Act?
Penalties for violating the act can range from civil to criminal penalties; an individual violating these laws may be jailed for up to three years and fined up to $350,000 per violation. Corporations may be fined up to $10 million per violation. Like most laws, the Sherman Antitrust Act has been expanded by court rulings and other legislative amendments since its passage. One such amendment came in the form of the Clayton Act.
Is the Sherman Antitrust Act a federal law?
Both the Sherman Antitrust Act and the Clayton Act are federal laws. Many states have passed their own legislation regulating business entities. If you are considering starting a business or merging your business with another entity, consult with a corporate attorney who can advise you of the state and federal limitations ...
