Answered: What do the Sherman Act and the Clayton…

Database System Concepts

7th Edition

ISBN:9780078022159

Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Chapter1: Introduction

Section: Chapter Questions

Problem 1PE

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What do the Sherman Act and the Clayton Act address? Describe each of the acts and how they are used to regulate business in this country.

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Sherman Act 1890

The Sherman Anti-Trust Act was the first Federal act that outlawed monopolistic business practices. The Sherman Antitrust Act of 1890 was the first measure passed by the U.S. Congress to prohibit trusts. It was approved on July 2, 1890.

It prohibited trusts, monopolies and cartels.
It also prohibited any contracts, conspiracies, business practices which restrained trade or created monoplies.
It also prohibited price fixation, division of markets or rigging bids by competing businesses.
If someone violates the rules, the defaulter will be penalized and have to pay the fines.
However, it promoted business engaged in healthy competition or monopolies formed through honest means.

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