Which act was designed to remedy deficiencies of the Sherman Antitrust Act?

Which act was designed to remedy deficiencies of the Sherman Antitrust Act?

• A. Federal Trade Commission Act
• B. Clayton Antitrust Act
• C. Sherman Antitrust Act
• D. Consumer Protection Act

Answer: (B)

The Clayton Antitrust Act was specifically designed to address some of the limitations of the Sherman Antitrust Act. While the Sherman Antitrust Act, passed in 1890, established a broad framework against monopolistic practices, it was somewhat vague and lacked specific provisions to target certain anti-competitive behaviors. The Clayton Act, enacted in 1914, enhanced these efforts by prohibiting specific practices that could lead to anti-competitive behavior, such as price discrimination, exclusive dealing agreements, and mergers that would substantially lessen competition or create a monopoly. Additionally, the Clayton Act aimed to protect labor unions and agricultural organizations from being considered illegal combinations in restraint of trade, which was a concern under the Sherman Act. By outlining clear prohibitions and remedies for various anti-competitive practices, the Clayton Antitrust Act made enforcement and compliance easier, representing a significant advancement in antitrust legislation. This understanding of the historical context and the intent behind the Clayton Act clarifies why it is the correct answer.

The Clayton Antitrust Act was specifically designed to address some of the limitations of the Sherman Antitrust Act. While the Sherman Antitrust Act, passed in 1890, established a broad framework against monopolistic practices, it was somewhat vague and lacked specific provisions to target certain anti-competitive behaviors. The Clayton Act, enacted in 1914, enhanced these efforts by prohibiting specific practices that could lead to anti-competitive behavior, such as price discrimination, exclusive dealing agreements, and mergers that would substantially lessen competition or create a monopoly.

Additionally, the Clayton Act aimed to protect labor unions and agricultural organizations from being considered illegal combinations in restraint of trade, which was a concern under the Sherman Act. By outlining clear prohibitions and remedies for various anti-competitive practices, the Clayton Antitrust Act made enforcement and compliance easier, representing a significant advancement in antitrust legislation. This understanding of the historical context and the intent behind the Clayton Act clarifies why it is the correct answer.