-Passed in 1890, the Sherman Antitrust Act was the first major 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.

What did the Sherman Antitrust Act do quizlet?

-Passed in 1890, the Sherman Antitrust Act was the first major 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.

What is the purpose of the Clayton Act?

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 interstate commerce clause and why is it important to federalism?

The Commerce Clause serves a two-fold purpose: it is the direct source of the most important powers that the Federal Government exercises in peacetime, and, except for the due process and equal protection clauses of the Fourteenth Amendment, it is the most important limitation imposed by the Constitution on the …

What happens if you violate the Clayton Act?

Since the Clayton Act and the Federal Trade Commission Act are civil statutes, those convicted of violating these laws do not receive prison time. Instead, they may be forced to pay fines and damages.

Why did the federal government establish the Interstate Commerce Commission?

Legislators designed the law, which established a five-member enforcement board known as the Interstate Commerce Commission, largely in response to public demand that the railroads’ conduct should be constrained. In the years following the Civil War, railroads were privately owned and entirely unregulated.

What was the goal of the Interstate Commerce Act quizlet?

What was the main purpose of the Interstate Commerce Act of 1887? The Interstate Commerce Act was created to limit the monopolistic practices of the railroad industry.

What is the difference between Sherman Act and 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. The Clayton Act and other antitrust and consumer protection regulations are enforced by the Federal Trade Commission.

Which of the following is not a violation of the Clayton Act?

Which of the following IS NOT a violation of the Clayton Act? Price discrimination. Incorrect. This is a violation of the Clayton Act.

Why was the Interstate Commerce Act passed quizlet?

Terms in this set (29) congress passed this law because of the public outrage. This act reestablished the right of the federal government to supervise railroad activities and established a five-member Interstate Commerce Commission (ICC) for that purpose. 1876; The Supreme Court upheld the Granger laws.

What are the two essential provisions of the Sherman Act?

The Sherman Act contains two main substantive provisions that prohibit agreements in restraint of trade and monopolization, respectively. These provisions are enforced by the Antitrust Division of the Department of Justice (DOJ), the Federal Trade Commission (FTC), and private plaintiffs.

Why was the Sherman Antitrust Act important?

What is the purpose of the Sherman Antitrust Act? The Sherman Antitrust Act was enacted in 1890 to curtail combinations of power that interfere with trade and reduce economic competition. It outlaws both formal cartels and attempts to monopolize any part of commerce in the United States.

Was the Sherman Antitrust Act good or bad?

For more than a decade after its passage, the Sherman Antitrust Act was invoked only rarely against industrial monopolies, and then not successfully. Ironically, its only effective use for a number of years was against labor unions, which were held by the courts to be illegal combinations.

How did the commerce clause affect federalism?

That tension between the states and the federal government over the proper extent of the Commerce Clause remains today. The Court ruled that the Commerce Clause allowed Congress to “regulate” interstate commerce, but not force citizens to participate in commerce by purchasing a product they did not want.

What was considered an illegal activity under the Sherman Antitrust Act answers com?

The Sherman Anti-Trust Act, passed in 1890, made it illegal for businesses to combine t create monopolies. Monopolies prevented competition and drove prices up for consumers.

What did the Sherman Act do?

The Sherman Act outlaws “every contract, combination, or conspiracy in restraint of trade,” and any “monopolization, attempted monopolization, or conspiracy or combination to monopolize.” Long ago, the Supreme Court decided that the Sherman Act does not prohibit every restraint of trade, only those that are …

How has the Commerce Clause been used to enhance the power of the federal government at the expense of state governments?

One point was earned for correctly explaining that “[t]he commerce clause has been used to expand the power of federal government over the states because as soon as trade becomes interstate, the federal government can step in and make laws over it that states must follow.” A second point was not earned for explaining …

What does the Clayton Act regulate?

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.

Why is it called antitrust law?

Antitrust law is the law of competition. Why then is it called “antitrust”? The answer is that these laws were originally established to check the abuses threatened or imposed by the immense “trusts” that emerged in the late 19th Century.

What was the main job of the Interstate Commerce Commission ICC )?

Interstate Commerce Commission (ICC), former independent agency of the U.S. government, established in 1887; it was charged with regulating the economics and services of specified carriers engaged in transportation between states.

What is the Interstate Commerce Act and its major significance?

With this act, the railroads became the first industry subject to Federal regulation. In 1887 Congress passed the Interstate Commerce Act, making the railroads the first industry subject to Federal regulation. Congress passed the law largely in response to public demand that railroad operations be regulated.

What did the Interstate Commerce Act and the Sherman Anti Trust Act have in common?

What did the Interstate Commerce Act and the Sherman Anti-Trust Act have in common? A. Both focused on the railroad industry. Both were regulations of industry at the federal level.

How did the Clayton Antitrust Act help regulate the economy?

The Clayton Antitrust Act helped regulate the economy by prohibiting business monopolies.

What are the four major provisions of the Clayton 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 …