The university of oxford centre for competition law and policy. In hutcheson, labor was granted immunity from the operation of the sherman statute and a new standard was developed. International antitrust enforcement assistance act of 1994, 15 u. Clayton antitrust act summary, history, significance. The core provisions are found in the 1890 sherman act and the 1914 clayton act, which have been refined through amendment over time. Congress in 1914 that provides further clarification and substance to the sherman antitrust act of 1890 on topics. Clayton antitrust act article about clayton antitrust act. Florence kelley the head of the national consumers league who spearheaded the progressive crusade to regulate the hours of work for women. 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 against unlawful restraints and monopolies, approved july second, eighteen. Congress in 1914 that provides further clarification and substance to the sherman antitrust act of 1890.
The clayton antitrust act of 1914 was a part of united states antitrust law with the goal of. Sherman act 7 foreign trade antitrust improvements act of 1982, 15 u. Enacted in 1890 it was fairly limited in scope and was intended to prohibit unscrupulous business practices that. Some sections have been edited or eliminated because of space concerns. Definition of clayton antitrust act law dictionary.
Of the first 10 antitrust cases, the majority are filed against organized labor and labor organizer samuel gompers alleging restraint of. Department of justice has the authority to prevent or modify anticompetitive mergers. Clayton act of 1914 clayton act of 1914\federal trade act. Congress responded to populist antitrust sentiments and deficiencies in the sherman antitrust act of 1890 with a new act. Enacted in 1890, the sherman act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts. Chamber documents and litigation records reveal a push by private parties. Antitrust laws with amendments 1 8 9 0 1 9 5 6 v 1. The clayton antitrust act is a piece of legislation passed by the u. It extended the sherman antitrust act of 1890, acting as one of the governments chief weapons against trusts. 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. The clayton act prohibited corporations from acquiring the stock of another if doing so would create a monopoly. The clayton antitrust act of 1914, was enacted on october 15, 1914, with a goal of strengthening provisions of the sherman antitrust act. The act defines unethical business practices, such as.
Section 5a of the clayton antitrust act of 1914, 15 u. The sherman act of 1890 was the first major federal antitrust act. 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. What links here related changes upload file special pages permanent link page information wikidata item cite this page. An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes.
Dec 22, 2019 the clayton anti trust act of 1914 was an addition to the sherman antitrust act of 1890 that protected consumers against harmful, anticompetitive business arrangements such as monopolies and cartels by defining prohibitions and an enforcement scheme. The use and effect of an antitrust guilty plea in subsequent. A brief overview of american antitrust law pdf 249kb oxford law. The key pieces of antitrust legislation in the united statesthe sherman antitrust act of 1890 and the clayton act of 1914contain broad language that has afforded the courts wide latitude. 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. Section 5a of the clayton act a starting point for analysis of your defense the should be the antitrust laws federal themselves. The sherman act enabled the department of justice to criminally and civilly prosecute unreasonable restraints of trade and monopolistic abuses. The clayton act sought to enhance and address weaknesses in the sherman act by preventing such unfair or anti.
The clayton antitrust act 1914 the clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. May 16, 2020 the clayton antitrust act, passed in 1914 by the united states congress, was one in a series of laws developed in the united states to address fair market competition and the need for regulation of business in response to the economic booms of the industrial age. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act 1890. One way in which the federal trade commission 1914 and the. Passed in 1914, the clayton act regulates general practices that may be detrimental to fair competition. On this date, the 63rd congress 191915 passed the clayton antitrust act p. The clayton act, authored by alabama congressman henry clayton, outlawed, among other things, anticompetitive mergers and acquisitions, interlocking directorates, and price discrimination. The clayton antitrust act of 1914 enacted october 15, 1914, was a part of united states antitrust law with the goal of adding further substance to the u. The new regulatory agency created by the wilson administration in 1914 that attacked monopolies, false advertisting, and consumer fraud was agricultural and labor organizations while it attacked business monopolies, the clayton anti trust act exempted from antitrust prosecution.
The expansion of the sherman act, created in 1914, this is the federal antitrust act which prohibits anti trust activities, the interference with interstate commerce and trade whether done directly or indirectly. Some of these general practices regulated by the clayton act are. Conduct involving trade or commerce with foreign nations. Note also that a, b, and 21a comprise the robinsonpatman price discrimination act 1936. The sherman act of 1890 was the first major federal antitrust act its two main sections state that 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 hereby declared to be illegal violators shall be guilty of a felony and. Pdf this article analyzes the evolution of antitrust law known as.
Antitrust laws with amendments, 18901956, clayton 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. Pdf the evolution ofantitrust law in usa researchgate. The clayton antitrust act us house of representatives. Article incorrectly notes that rule of reason applies to clayton act 3 claims. What is the sherman antitrust act and the clayton act. The clayton act and federal trade commission acts of 1914 are. Sherman act and the 1914 clayton act, which have been refined through amendment over time. The clayton antitrust act provides barriers to a broad range of anticompetitiveness issues. Passed in 1890, the first law to restrict monopolistic trusts and business combinations. Antitrust laws with amendments, 18901956, clayton antitrust act by gilman g.
Federal antitrust statutes include the sherman act 1890, the clayton act 1914and the federal trade commission act 1914. The clayton antitrust act attempts to prohibit certain actions that lead to anticompetitiveness. The act applies only to the sales of goods and not of services. Before the clayton antitrust act of 1914, there was the sherman antitrust act. The clayton antitrust act is an amendment passed by u. American federal antitrust law has developed in common law style, through the accretion of judicial precedents over more than a century. With the sherman act in place, and trusts being broken up, business practices in america were changing. The clayton antitrust act of 1914 pearson education. The clayton antitrust act of 1914, codified at 15 u. The act declares unlawful all unfair methods of competition, and unfair or deceptive acts or practices in commerce. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act. One way in which the federal trade commission 1914 and the clayton antitrust act 1914 are similar is that both 2 attempted to correct abusive business practices, since they both aimed at curbing the monopolies that were dragging the us economy down. But some companies discovered merging as a way to control prices and production instead of forming trusts, competitors united into a single company.
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