The Sherman Antitrust Act was the first government action to limit trusts (A combination of firms or corporations who agree not to lower prices below a certain rate for the purpose of reducing competition and controlling prices throughout a business or an industry). It was passed in 1890 and was named for its author, SenatorJohn Sherman of Ohio. It made illegal any form of contract or combination between entities in regards to trade and commerce. And it also put responsibility on government attorneys and district courts to pursue and investigate trusts. The Act was not used in court cases for some years, but Theodore Roosevelt used the Act extensively in his Anti-Trust campaign and managed to divide the Northern Securities Company. It was even further used by President Taft to split and divide the American Tobacco Company and the Standard Oil trust. There have been many supplementing acts to aid the Sherman Act in preventing monopolies. Some of these were the Clayton Antitrust Act in 1914, Robinson-Patman Act of 1936 and the Hart-Scott-Rodino Antitrust Improvements Act of 1976 among others.
The Act was signed by President Benjamin Harrison in 1890 and was named for its author, Senator John Sherman of Ohio.
The Act was not used in court cases for some years, but Theodore Roosevelt used the Act extensively in his antitrust campaign, managing to divide the Northern Securities Company.
Some alleged violations of the ShermanAct are not prosecuted criminally, but rather are adjudicated in civil proceedings under a "rule of reason" standard, which examines the economic benefits and harm of allegedly anti-competitive conduct to determine whether it is, on balance, beneficial to consumers and should be permitted to continue.
ShermanAntitrustAct, 1890, first measure passed by the U.S. Congress to prohibit trusts; it was named for Senator John Sherman.
The act, based on the constitutional power of Congress to regulate interstate commerce, declared illegal every contract, combination (in the form of trust or otherwise), or conspiracy in restraint of interstate and foreign trade.
The Hart-Scoss-Rodino Antitrust Improvement Act (1976) made it easier for regulators to investigate mergers for antitrust violations, but few mergers were blocked during the merger boom of the 1980s, when the FTC and Justice Dept. adopted a looser interpretation of antitrust legislation.
Feeds |
Contact