Federal antitrust statutes include the sherman act 1890, the clayton act 1914and the federal trade commission act 1914. But an ftc or doj investigation of shared officers or. The clayton act the clayton act is a civil statute carrying no criminal penalties that was passed in 1914 and. Mccarranferguson act also provides that the sherman antitrust of 1890, the clayton act of 1914 and the federal trade commission act of 1914 apply to the business of insurance to the extent that. The norrislaguardia act years later clarified its prolabor use. Investment banks as corporate monitors in the early 20th. Statutes used in criminal antitrust investigations and prosecutions. The clayton antitrust act of 1914 accomplished all of the following except providing longterm legal protection for unions to engage in organizing, collective bargaining, and strike activities. In 2011, in what may have been a response to the 2010 gipsa rule, the. With the sherman act in place, and trusts being broken up, business practices in america were changing. The act entitled an act to reduce taxation, to provide revenue for the government, and for other purposes, of august twentyseventh, eighteen hundred and ninetyfour, referred to in subsec.
The clayton act in 1914, the robinson patman act in 1936 and the bank holding company act in 1956 have each addressed various issues related to. It does not carry criminal penalties, but does permit trebled damage awards. The clayton antitrust act of 1914, codified at 15 u. Section 2 of the sherman antitrust act of 1890 clayton antitrust act of 1914 federal trade commission act of 1914 robinsonpatman act of 1936 state laws 3. The sherman act also makes the attempt to monopolize a felony, and includes criminal penalties as well as fines.
Some of these general practices regulated by the clayton act are. The sherman antitrust act of 1890, the clayton act of 1914, the robinsonpatman act of 1936, and the federal. Before the clayton antitrust act of 1914, there was the sherman antitrust act. Whereas the sherman act only declared monopoly illegal, the clayton act defined as illegal certain business practices that are conductive to the formation of monopolies or that result from them.
Doj may enforce the sherman act prohibitions through criminal or civil actions. The clayton antitrust act 1 the clayton antitrust act united states congress 1 overview the clayton antitrust act 1914 forbade several practices that destroyed competition or prevented new. On this date, the 63rd congress 191915 passed the clayton antitrust act p. Like roosevelt, wilson only opposed trusts that engaged in unfair practices. Best practices for preventing and defending against.
Clayton antitrust act of 1914 the clayton antitrust act of 1914 made good some of the deficiencies of the sherman antitrust act of 1890. The national debate culminated in 1914, with woodrow wilson signing the federal trade commission act on. The clayton act expressly exempts labor unions from prosecution under the sherman act. In hutcheson, labor was granted immunity from the operation of the. Federal antitrust statutes include the sherman act 1890, the clayton act 1914 and the federal trade commission act 1914. Clayton antitrust act summary, history, significance. In 1914 congress passed the clayton act, which identi. The clayton act, adopted in 1914, provides that civil actions may be brought by the u.
The clayton antitrust act was much more effective than the earlier sherman antitrust act and gave the government the power to protect both competition and consumers by restricting certain unhealthy business practices. By the turn of the 20th century, large corporations had cornered whole segments of americas economy using predatory pricing, exclusive dealings, and anticompetitive mergers to drive local businesses to ruin. Note also that a, b, and 21a comprise the robinsonpatman price discrimination act 1936. The clayton act also protected unions from being defined as trusts, allowing them more freedom to organize. Antitrust policy the term antitrust, which grew out of the us trust. An injunction is a judicial order that stops the conduct in question. Trade commission act of 1914,3 which prohibits unfair methods of competition. By 1914, senator william thompson kansas found that over 9,877 previously independent. The hartscottrodino act added a section to the clayton act allowing a state attorney general to sue under antitrust. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act.
Section 5 is generally viewed as covering not only the same civil antitrust violations prosecuted by the ftc and doj. An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes. Sherman act 7 foreign trade antitrust improvements act of 1982, 15 u. Clayton act 100th anniversary symposium federal trade. Congress passed the surprisingly ambiguous clayton act in 1914. But some companies discovered merging as a way to control prices and production instead of forming trusts, competitors united into a single company. Enacted in 1890, the sherman act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts. The clayton act sought to enhance and address weaknesses in the sherman act by preventing such unfair or anticompetitive business practices in their infancy. The sherman and clayton acts the clayton act of 1914 classifies several business practices as illegal, including price discrimination and tying contracts, if they substantially lessen competition or tend to create a monopoly. Section 5 is generally viewed as covering not only the same civil antitrust violations prosecuted by the ftc and doj under the sherman act4 and the clayton act,5 but also other conduct that may not be reached by the sherman and clayton acts, such as invita.
What links here related changes upload file special pages permanent link page information wikidata item cite this page. The clayton antitrust act of 1914 was a part of united states antitrust law with the goal of. The clayton antitrust act of 1914, was enacted on october 15, 1914, with a goal of strengthening provisions of the sherman antitrust act. The clayton antitrust act is an amendment passed by u. The word person or persons wherever used in this act shall be deemed to include corporations and associations existing under or authorized by the laws of either the united states, the laws of any of the territories, the laws of any state, or the laws of any foreign country. Some of the provisions of the clayton antitrust act appear here. Enacted in 1890 it was fairly limited in scope and was intended to prohibit unscrupulous business. The clayton act of 1914 is an example of which of the following. The clayton act 1914 this act made the following business practices illegal when their effects may be to substantially lessen competition or tend to create a monopoly. The clayton act helps protect american consumers by stopping mergers or acquisitions that are likely to stifle competition.
The vague language of the latter had provided large corporations. While the approach of courts resembles a rule of reason approach, courts still refer to it as selectively. A brief overview of american antitrust law pdf 249kb oxford law. With the federal trade commission ftc act 1914, congress created a new federal agency to watch out for unfair business practicesand gave the federal trade commission the authority to investigate and stop unfair methods of. Pdf the evolution ofantitrust law in usa researchgate. Enacted in 1890, the sherman act had been the first. Clayton act section 7 1914 merger law no person engaged in commerce shall aquire the capital of another where the effer of such an aquisition, in any line of commerce, in any section of the country, may be to substantially lessen competition or tend to create monopoly. Clayton act should be considered high importance if the past 6 u. Passed in 1914, the clayton act regulates general practices that may be detrimental to fair competition. Congress in 1914 that provides further clarification and substance to the sherman antitrust act of 1890 on topics. The clayton antitrust act was much more effective than the earlier sherman antitrust act and gave the. The clayton act of 1914 makes a variety of anticompetitive behaviors illegal. In hutcheson, labor was granted immunity from the operation of the sherman statute and a new standard was developed. Clayton act 1914 unions and labor leaders alike heralded the clayton act from bus 372 at ashford university.
Sherman act and the 1914 clayton act, which have been refined through amendment over time. Learn vocabulary, terms, and more with flashcards, games, and other study tools. It has not been an enforcement priority for the ftc or the department of justice doj. The sherman antitrust act was rather vaguely worded that enabled a businessman to. If you have issues viewing or accessing this file contact. The sherman act enabled the department of justice to criminally and civilly prosecute unreasonable restraints of trade and monopolistic abuses. The passage of the clayton antitrust act 1914 helped to remedy the situation. The clayton antitrust act of 1914 made good some of the deficiencies of the sherman antitrust act of 1890. Clayton act 1914 unions and labor leaders alike heralded. Sherman act and the 1914 clayton act, which have been refined through.
In 1914, the clayton antitrust act defined specific activities in which businesses could not engage. Clayton antitrust act is passed why is the clayton antitrust act so important. Section 4 of the clayton act 1914 allows the recovery of damages. The clayton antitrust act us house of representatives. Ftc jointly enforce the clayton act, the primary federal merger enforcement statute.
A corporate guideline of ethics needs to go beyond the issues covered by legislation. Nov 10, 2014 history project by emily carpentier, constantine banez and rachel miyagawa. Robinsonpatman act definition, price discrimination. The clayton antitrust act 1914 the clayton antitrust act 1914 the clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. This event was a major milestone for tobin and the teamsters.
Us antitrust law and policy in historical perspective harvard. In september of 1914, president woodrow wilson addressed the teamsters convention. The sherman antitrust act was rather vaguely worded that enabled a businessman to engage in restrictive trade practices adversely affecting competition but without offending any provision of the said statute. Government or by private parties to enforce the federal antitrust laws, including the sherman act. The sherman and clayton acts the clayton act of 1914 classifies several business practices as illegal, including price discrimination and tying contracts, if they substantially lessen competition. Jun 19, 2018 the purpose of the clayton act was to give more enforcement teeth to the sherman antitrust act. Chamber documents and litigation records reveal a push by private parties. The clayton act 1914 this act made the following business. Department of justice only files nine cases relating to antitrust laws, and only 16 in the first 12. It extended the sherman antitrust act of 1890, acting as one of the governments chief weapons against trusts. Some sections have been edited or eliminated because of space concerns. The clayton act allows those injured by violations of either act to bring federal court actions for treble damages. The sherman antitrust act of 1890, the clayton act of 1914, the robinsonpatman act of 1936, and the federal trade commission act of 1914 together ensure interfirm competition without interfering with the spirit and creativity of the marketing industry.
The clayton antitrust act 1914 the clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. Section 8 was enacted in 1914 to remove any temptation for corporations to coordinate their activities through a shared board member. The clayton antitrust act 1 the clayton antitrust act united states congress 1 overview the clayton antitrust act 1914 forbade several practices that destroyed competition or prevented new businesses from forming. The clayton antitrust act of 1914 clayton antitrust act pt 4 organized labor was as heartened by the act as it had been dejected by the doctrine of the danbury hatters case, but subsequent judicial. Conduct involving trade or commerce with foreign nations. Sections seventythree to seventysix thereof are set. Be it enacted by the senate and house of representatives of the united states of america in. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act 1890. Section 2 a1 of the clayton act as amended by the robinson. Clayton antitrust act project gutenberg selfpublishing. Department of justice has the authority to prevent or modify anticompetitive mergers. The clayton act and federal trade commission acts of 1914 are. Monopoly lecture outline monopolies have no close competitors and, therefore, can influence the market price of its.
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