The clayton antitrust act 1914 carnegie mellon university. Clayton antitrust act summary, history, significance. Clayton antitrust act flashcards and study sets quizlet. Antitrust laws, as used herein, includes the act entitled an act to protect trade and commerce against unlawful restraints and monopolies, approved july second, eighteen hundred and ninety. An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes. Sherman antitrust act, first legislation enacted by the united states congress 1890 to curb concentrations of power that interfere with trade and reduce economic competition. The core provisions are found in the 1890 sherman act and the 1914 clayton act, which have been refined through amendment over time.
The clayton antitrust act gave the government greater power to break up monopolistic corporations than it had under the earlier sherman antitrust act 1890. This act laid out specifically illegal actions that monopolies were doing. The university of oxford centre for competition law and policy. Federal register revised jurisdictional thresholds for. The clayton antitrust act is a united states antitrust law that was enacted in 1914 with the goal of strengthening the sherman antitrust act. The act entitles a successful private claimant to an award of triple damages and costs including a reasonable attorneys fee section 4, clayton act. Be it enacted by the senate and house of representatives of the united states of america in congress assembled, that antitrust laws, as used herein. United states code title 15 commerce and trade chapter 1 monopolies and combinations in restraint of trade.
Labour unions and agricultural associations were exempted from antitrust actions. Many consumers have never heard of antitrust laws, but when these laws are effectively and responsibly enforced, they can save consumers millions and even billions of dollars a year in illegal overcharges. Organized labor was heartened by the passage of the clayton antitrust act, a major win for the millions of american union members. It extended the sherman antitrust act of 1890, acting as one of the governments chief weapons against trusts. Statutory provisions and guidelines of the antitrust division. With the sherman act in place, and trusts being broken up, business practices in america were changing. 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. American federal antitrust law has developed in common law style, through the accretion of judicial precedents over more than a century.
A mustread guide for board members and officers summary recent enforcement activity by the department of justice that required restructuring a live transaction and the federal trade commission makes clear that enforcement of section 8 of the clayton act, the prohibition against interlocks. The sherman antitrust act 1890 prohibits pricefixing schemes by competitors, divvying up market turf, coordinating blacklists against suppliers or buyers, as well as using monopoly power to subvert business rivals. Clayton antitrust act project gutenberg selfpublishing. One of the important new freedom progressive reforms, attacks against unfair business practices and federal laws passed during his presidency was the clayton antitrust act. At the end of the paper it is introduced the main tools that. After the enactment of the sherman act in 1890, regulators found that the act contained certain weaknesses that made it impossible to fully prevent anticompetitive businesses practices in the united states. Senate, but the appointment was challenged and he withdrew.
Some sections have been edited or eliminated because of space concerns. Board interlocks on antitrust enforcement hot seat. The clayton act allows those injured by violations of either act to bring federal court actions for treble damages. It made it illegal for competitors to buy each other out without approval. The sherman act 1890, which prohibits conspiracies and monopolisation. Clayton antitrust act legal definition merriamwebster. Department of justice doj, and provides consumer protection.
Us antitrust law and policy in historical perspective harvard. It forbade price discrimination, tying arrangements and exclusive dealing, and the acquisition of another corporations stock where this led to monopoly or decreased competition. Whereas the sherman act only declared monopoly illegal, the clayton act defined as illegal certain business practices that are conductive to the. Client alert antitrustcompetition a novel antitrust. For classification of the clayton act to the code, see last paragraph hereunder. The robinsonpatman act is an amendment to the 1914 clayton antitrust act and is. Senator john sherman of ohio, who was an expert on the regulation of commerce. The clayton antitrust act 1914 the clayton antitrust act is comprised of 12, , 1419, 20, 21, 2227 of title 15. Enacted in 1890, the sherman act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts. The principal statute that prohibits interlocking directorates is section 8 of the clayton act 15 u. The clayton antitrust act of 1914 was a part of united states antitrust law with the goal of.
A federal law passed in 1936 to outlaw price discrimination. The united states of america introduced the clayton antitrust act in october 15, 1914. Choose from 36 different sets of clayton antitrust act flashcards on quizlet. Ftcs bureau of competition and the department of justices antitrust division enforce these three core federal antitrust laws. The hartscottrodino act added a section to the clayton act allowing a state attorney general to sue under antitrust. Clayton antitrust act 1914 812 words essay example.
The clayton antitrust act of 1914 pearson education. The clayton antitrust act of 1914, was a part of united states antitrust law with the goal of adding further substance to the u. The clayton antitrust act of 1914, was enacted on october 15, 1914, with a goal of strengthening provisions of 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. That whenever a corporation shall violate any of the penal provisions of the antitrust laws, such violation shall be deemed to he also that of the individual directors, officers, or agents of such corporation who shall have authorized, ordered, or done any of the acts constituting in whole or in part such violation. Clayton antitrust act overview and history, sections. Pdf the evolution ofantitrust law in usa researchgate. Be it enacted by the senate and house of representatives of the united states of america in congress assembled, that antitrust laws, as used herein, includes the act entitled an act to protect trade and commerce. An injunction is a judicial order that stops the conduct in question. The act entitled an act to protect trade and commerce against unlawful restraints and monopolies, approved july second, eighteen hundred and ninety, referred to in subsec. The us federal trade commission today announced increased thresholds for the hartscottrodino antitrust improvements act of 1976 and for determining whether parties trigger the prohibition against interlocking directors under section 8 of the clayton act. The clayton act specified particular prohibited conduct, the threelevel enforcement scheme, the exemptions, and the remedial measu.
Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is declared to be illegal. The clayton act prohibited corporations from acquiring the stock of another if doing so would create a monopoly. The same year, the ftc act was passed, creating the federal trade commission ftc federal government agency that enforces the antitrust laws, along with the u. According to johnston and johnston 256, the act aimed to deter unfair business practices such as monopolistic market structures, which affect negatively the consumers due to lack rivalry in the market. Learn clayton antitrust act with free interactive flashcards. The sherman act still needed more strengthening, so congress acted again in 1914. The district court dismissed the complaint, holding that, as to the alleged sherman act violations, the evidence failed to establish the existence of a conspiracy, and that, though there was proof of price discrimination violative of the clayton act by certain of the defendants, a prior decree of that court in a private antitrust suit by a.
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 same analogy is done with the clayton act and other amendments of antitrust acts. The act defines unethical business practices, such as price fixing and monopolies, and upholds various rights of labor. The clayton antitrust act is a piece of legislation passed by the u. Conduct involving trade or commerce with foreign nations.
Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act. The act continued to benefit workers in later years, serving as the basis for a great many important pieces of prolabor legislation against large corporations. Sherman antitrust act of 1890 promised to rein in the trusts through federal prosecutions. The clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. The federal trade commission ftc and the antitrust division of the u. That regime started with the sherman antitrust act of 1890, the first federal law outlawing practices considered harmful to consumers. The act allowed triple damages to those injured by breaches of antitrust law.280 19 950 839 1167 13 250 926 1522 76 17 1418 474 1500 1471 1399 1270 753 571 217 1274 1361 1279 1436 361 1534 358 211 386 467 996 318 1189 1482 1104 966 646 1212 593 449 278