What was the purpose of the Sherman Antitrust Act?

What was the purpose of the Sherman Antitrust Act?

• A. To regulate the production of alcohol
• B. To outlaw monopolies and practices that restrained trade
• C. To guarantee workers' rights and safety
• D. To enforce federal income tax regulations

Answer: (B)

The Sherman Antitrust Act was primarily designed to promote fair competition and prevent monopolistic practices in the marketplace. Enacted in 1890, it aimed to address the growing concerns about large corporations and trusts that were dominating markets, stifling competition, and manipulating prices. By outlawing monopolies and practices that restrained trade, the Act sought to ensure that consumers had access to a variety of goods and services at competitive prices, thereby fostering a more dynamic and equitable economy. This legislation was foundational in establishing a legal framework for addressing anti-competitive behavior, which continues to influence antitrust policy in the United States today.

The Sherman Antitrust Act was primarily designed to promote fair competition and prevent monopolistic practices in the marketplace. Enacted in 1890, it aimed to address the growing concerns about large corporations and trusts that were dominating markets, stifling competition, and manipulating prices. By outlawing monopolies and practices that restrained trade, the Act sought to ensure that consumers had access to a variety of goods and services at competitive prices, thereby fostering a more dynamic and equitable economy. This legislation was foundational in establishing a legal framework for addressing anti-competitive behavior, which continues to influence antitrust policy in the United States today.