Antitrust Laws and Monopolies: Sherman and Clayton Acts, Quizzes of Introduction to Business Management

Download Antitrust Laws and Monopolies: Sherman and Clayton Acts and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 Sherman Antitrust Act DEFINITION 1 *created in 1890 in response to the industrial revolution*prohibits companies from:-illegally entering into contracts of restraint-creating monopolies TERM 2 Why No Monopolies? DEFINITION 2 competition=most productive use of resourcesprice downinnovation uphigher distribution of wealtholigapolies are actually good though because of high investments (commercial airlines) TERM 3 Robber Barons DEFINITION 3 rockfeller, carneige, vanderbilt, mellon, mogan: created "trusts" to protect their wealth from creditors and tax and pass down through generations.ex: Ted Kennedy "trust baby" TERM 4 Clayton Act (1914) DEFINITION 4 "where things might tend to create a monopoly or lesson competition"prohibits anyone involved in interstate commerce from:*practicing price discrimination between customers that cannot be justfied by differences in other costs.*entering into exclusive dealing or tying arrangements that restrain interstate trade/commerce.*effecting any merger the effect of which may be to substantially lessen comp.EXEMPTIONS: Unions TERM 5 Federal Trade Commision Act (1914) DEFINITION 5 Focuses on consumer protection and prohibits:*unfair methods of competition (similar to the clayton act)*unfair or deceptive acts or practices (especially advertisements)