A brief overview of american antitrust law pdf 249kb oxford law. Some of these general practices regulated by the clayton act are. Statutory provisions and guidelines of the antitrust division. Enacted in 1890 it was fairly limited in scope and was intended to prohibit unscrupulous business.
Section 4 of the clayton act 1914 allows the recovery of damages by any person injured in his business or property by reason of anything forbidden in the. A federal law enacted in 1914 as an amendment to the sherman antitrust act 15 u. Before the clayton antitrust act of 1914, there was the sherman antitrust act. On this date, the 63rd congress 191915 passed the clayton antitrust act p. The clayton act 1914 aims to further prevent anticompetitive behavior of businesses by addressing specific known practices that can harm competitive markets. Price discrimination when businesses charge people different prices for the same product in. The trusts issue culminated in the passage of the clayton act in1914, which conventional wisdom holds was a response to theperceived ineffectiveness of the sherman antitrust act of 1890.
Note also that a, b, and 21a comprise the robinsonpatman price discrimination act 1936. The clayton antitrust act of 1914, was enacted on october 15, 1914, with a goal of strengthening provisions of the sherman antitrust act. The university of oxford centre for competition law and policy. The purpose of the clayton act was to give more enforcement teeth to the sherman antitrust act. Federated womens club the general federation of womens clubs gfwc, founded in 1890 during the progressive movement, is a federation of over 3,000 womens clubs. This event was a major milestone for tobin and the teamsters. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act. The clayton act specified particular prohibited conduct, the threelevel enforcement scheme. The clayton act builds on the sherman antitrust act by prohibiting mergers and acquisitions determined to be harmful to competition. The clayton antitrust act 1914 forbade several practices that destroyed competition or prevented new businesses from forming.
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. The sherman act 1890, which prohibits conspiracies and monopolisation. It shall be unlawful for any person engaged in commerce, in the course of such commerce, to lease or make a sale or contract for sale of goods, wares, merchandise, machinery, supplies, or other commodities, whether patented or unpatented, for use, consumption, or resale within the united states or any territory thereof or the district of columbia or any insular possession or other place under. Enacted in 1890, the sherman act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts. It extended the sherman antitrust act of 1890, acting as one of the governments chief weapons against trusts. Doj may enforce the sherman act prohibitions through criminal or civil actions. The ftc, which has authority to enforce the clayton act, as well as engage in other consumer protection activities, was. The clayton act sought to enhance and address weaknesses in the sherman act by preventing such unfair or anti. The clayton antitrust act is an amendment passed by u. The clayton act of 1914 was one of the major pieces of legislation of the progressive era in american history.
Congress passed the first antitrust law, the sherman act, in 1890 as a comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade. Sherman act 7 foreign trade antitrust improvements act of 1982, 15 u. Clayton antitrust act 1914 812 words essay example. The sherman antitrust act of 1890, the clayton act of 1914, the robinsonpatman act of 1936, and the federal trade commission act of 1914 together ensure interfirm competition without interfering with the spirit and creativity of the marketing industry. An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes.
Clayton antitrust act 1914 strength in the sherman antitrust act protected labor unions from antitrust action samuel. The clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. Clayton antitrust act 1914 strength in the sherman antitrust act protected labor unions from antitrust action samuel gompers liked the clayton act this was wilsons major campaign against the triple wall of privilege 2. Sherman act and the 1914 clayton act, which have been refined through amendment over time. The clayton act was passed in 1914 and adds detail to the sherman act. The trusts issue culminated in the passage of the clayton act in1914, which conventional wisdom holds was a response to theperceived ineffectiveness of the. Section 2 of the act banned price discrimination between different customers buying the exact same goods. Clayton antitrust act is passed why is the clayton antitrust act so important. The clayton act builds on the sherman antitrust act by prohibiting mergers and acquisitions determined to be harmful to competition under the clayton act, private parties consumers and competitors are allowed to bring an antitrust lawsuit against companies who. 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. The clayton antitrust act us house of representatives. Conduct involving trade or commerce with foreign nations. Clayton antitrust act article about clayton antitrust. It prohibited four specific types of monopolistic practices.
Wilson delivered on his promise with passage of the clayton antitrust act on october 15, 1914. The empirical findings strongly support the wealth transferhypothesis, and the. The rise of the progressive era brought increased scrutiny of trusts and more favorable attitudes towards labor unions. Whereas the sherman act only declared monopoly illegal, the clayton act defined as illegal certain business practices that are conductive to the. The act, signed into law by woodrow wilson in 1914, outlaws unfair methods of competition and outlaws unfair acts or practices that affect commerce. Clayton act of 1914 clayton act of 1914\federal trade. But some companies discovered merging as a way to control prices and production instead of forming trusts, competitors united into a single company. 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. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The clayton antitrust act 1914 the clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. 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. An injunction is a judicial order that stops the conduct in question. This act was amended by the robinsonpatman act, pub.
The clayton act allows those injured by violations of either act to bring federal court actions for treble damages. The act entitles a successful private claimant to an award of triple damages and costs including a reasonable attorneys fee section 4, clayton act. The clayton act home alphabetic chronological legal area product full textsearch key statutes glossary links antitrust. Some sections have been edited or eliminated because of space concerns. Clayton antitrust act summary, history, significance. Congress in 1914 that provides further clarification and substance to the sherman antitrust act of 1890 on topics. Although a frequent critic of the president during his first two years in the white house, wilson graciously thanked tobin for his role. The empirical findings strongly support the wealth transferhypothesis. President woodrow wilson signed the clayton act into law in 1914. The clayton act of 1914 outlawed or curtailed several specific business practices considered to be unreasonable attempts to restrain trade or commerce.
A corporate guideline of ethics needs to go beyond the issues covered by legislation. The hartscottrodino act added a section to the clayton act allowing a state attorney general to sue under antitrust. Clayton antitrust act article about clayton antitrust act. The clayton act and federal trade commission acts of 1914 are. In september of 1914, president woodrow wilson addressed the teamsters convention. Clayton antitrust act project gutenberg selfpublishing. The hartscottrodino act hsr, adding section 7a of the clayton act, is listed separately. The clayton act 1914 extended the right to sue under the antitrust laws to any person who shall be injured in his business or property by reason of anything. The clayton act which, among other things, prohibits. With the sherman act in place, and trusts being broken up, business practices in america were changing.
The union was now a key player in the political realm and a powerful force in the labor movement. Passed in 1914, the clayton act regulates general practices that may be detrimental to fair competition. United states code title 15 commerce and trade chapter 1 monopolies and combinations in restraint of trade. The clayton antitrust act was much more effective than the earlier sherman antitrust act and gave the government the power to protect both competition and consumers by restricting certain unhealthy business practices. In 1914, congress passed two additional antitrust laws. Clayton act section 7 1914 merger law no person engaged in commerce shall aquire the capital of another where the effer of such an aquisition, in any line of commerce, in any section of the country, may be to substantially lessen competition or tend to create monopoly.
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. The inspiration and motivation for this act started in 1890, when the sherman act was passed. 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. What is the sherman antitrust act and the clayton act. The federal trade commission act of 1914 established the federal trade commission. Clayton antitrust act overview and history, sections. Clayton act of 1914 clayton act of 1914\federal trade act. The clayton antitrust act is a united states antitrust law that was enacted in 1914 with the goal of strengthening the sherman antitrust act.
Walsh, the act was meant to preserve competition where it exists, to restore it where it is destroyed, and to permit it to spring up in new fields. The clayton act declared that unions were not unlawful under the sherman antitrust provisions, and workers compensation bills were passed in most states. 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 antitrust act of 1914 was a part of united states antitrust law with the goal of. The ftc, which has authority to enforce the clayton act, as well as engage in other consumer protection activities, was created the same year.
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