This had created a problem for workers, who needed to organize to balance the equal bargaining power against their employers.
The prevailing economic theory supporting antitrust laws in the United States is that the public is best served by free competition in trade and industry.
However, many businesses would rather dictate the price, quantity, and quality of the goods that they produce, without having to compete for consumers.
Some businesses have tried to eliminate competition through illegal means, such as fixing prices and assigning exclusive territories to Sherman antitrust act wikipedia the competitors within an industry.
Antitrust laws seek to eliminate such illegal behavior and promote free and fair marketplace competition.
Until the late s the federal government encouraged the growth of big business. By the end of the century, however, the emergence of powerful trusts began to threaten the U. Trusts were corporate holding companies that, byhad consolidated a very large share of U.
The trusts found that through consolidation they could charge monopoly prices and thus make excessive profits and large financial gains. Access to greater political power at state and national levels led to further economic benefits for the trusts, such as tariffs or discriminatory railroad rates or rebates.
Consumers, workers, farmers, and other suppliers were directly hurt monetarily as a result of the monopolizations.
Even more important, perhaps, was that the trusts fanned into renewed flame a traditional U. The public demanded legislative action, which prompted Congress, into pass the Sherman Act.
The act was followed by several other antitrust acts, including the clayton act of 15 U. All of these acts attempt to prohibit anticompetitive practices and prevent unreasonable concentrations of economic power that stifle or weaken competition.
The Sherman Act made agreements "in restraint of trade" illegal. It also made it a crime to "monopolize, or attempt to monopolize … any part of the trade or commerce.
However, enforcement of the act proved to be difficult. Congress had enacted the Sherman Act pursuant to its constitutional power to regulate interstate commerce, but this was only the second time that Congress relied on that power.
Because Congress was somewhat uncertain of the reach of its legislative power, it framed the law in broad common-law concepts that lacked detail. For example, such key terms as monopoly and trust were not defined. In effect, Congress passed the problem of enforcing the law to the executive branch, and to the judicial branch, it gave the responsibility of interpreting the law.
Still, the act was a far-reaching legislative departure from the predominant laissez-faire philosophy of the era. Initial enforcement of the Sherman Act was halting, set back in part by the decision of the Supreme Court in United States v. This problem was soon circumvented, and President theodore roosevelt promoted the antitrust cause, calling himself a "trustbuster.
As a result, a number of major cases were successfully brought in the first decade of the century, largely terminating trusts and basically transforming the face of U. During the s, enforcement efforts were more modest, and during much of the s, the national recovery program of the new deal encouraged industrial collaboration rather than competition.
During the late s, an intensive enforcement of antitrust laws was undertaken.Nov 20, · They are the Sherman Antitrust Act, The Federal Trade commission Act, The Clayton Antitrust Act and the Celler-Kefauver Act. The Sherman Antitrust Act is legislation enacted to protect Americans against monopolies.
Sherman antitrust act definition, an act of Congress () prohibiting any contract, conspiracy, or combination of business interests in restraint of foreign or interstate trade.
See more. sherman antitrust act in CultureSherman Antitrust Act. A federal law passed in that committed the American government to opposing monopolies. The law prohibits contracts, combinations, or conspiracies “in the restraint of trade or commerce.” Under the authority of the Sherman Antitrust Act, the federal government initiated suits.
The Sherman Antitrust Act (Sherman Act,  July 2, , ch. , 26 Stat. , 15 U.S.C. § 1–7) was the first United States Federal statute to limit cartels and monopolies.
Sherman antitrust act definition, an act of Congress () prohibiting any contract, conspiracy, or combination of business interests in restraint of foreign or interstate trade. See more. Sherman Antitrust Act - Wikipedia, the free encyclopedia "This focus of U.S. competition law, on protection of competition rather than competitors, is not necessarily the only possible focus or . The Sherman Antitrust Act of (26 Stat. , 15 U.S.C. §§ 1–7) is a United States antitrust law passed by Congress under the presidency of Benjamin .
It falls under antitrust law. The Sherman Antitrust Act of (26 Stat. , 15 U.S.C. §§ 1–7) is a United States antitrust law passed by Congress under the presidency of Benjamin . It was followed by the Sherman Antitrust Act of , the Clayton Antitrust Act of and the Federal Trade Commission Act of , the Robinson–Patman Act of , and the Celler–Kefauver Act of
The Sherman Antitrust Act (Sherman Act,  July 2, , ch. , 26 Stat. , 15 U.S.C. § 1–7) was the first United States Federal statute to limit cartels and monopolies. It falls under antitrust law. SHERMAN ANTI-TRUST ACT. The Sherman Anti-Trust Act of (15 U.S.C.A. §§ 1 et seq.), the first and most significant of the U.S. antitrust laws, was signed into law by President benjamin harrison and is named after its primary supporter, Ohio Senator john sherman. Sherman Antitrust Act - Wikipedia, the free encyclopedia "This focus of U.S. competition law, on protection of competition rather than competitors, is not necessarily the only possible focus or .