The clayton antitrust act 1914 forbade several practices that destroyed competition or prevented new businesses from forming. Congress in 1914 that provides further clarification and substance to the sherman antitrust act of 1890 on. Enacted in 1890, the sherman act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts. 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. The sherman antitrust act was rather vaguely worded that enabled.
The ftc, which has authority to enforce the clayton act, as well as engage in other consumer protection activities, was created the. Note also that a, b, and 21a comprise the robinsonpatman price discrimination act 1936. Whereas the sherman act only declared monopoly illegal, the clayton act. The clayton act was passed in 1914 and adds detail to the sherman act. Clayton act of 1914 clayton act of 1914\federal trade act. 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. This act was amended by the robinsonpatman act, pub. The clayton antitrust act is an amendment passed by u. The federal trade commission was established in 1914 to address all of the. Full text of the clayton act see other formats stop early journal content on jstor, free to anyone in the world this article is one of nearly 500,000 scholarly works digitized and made freely available to everyone in the world by jstor. A federal law passed in 1936 to outlaw price discrimination.
Doj may enforce the sherman act prohibitions through criminal or civil actions. Sherman act and the 1914 clayton act, which have been refined. On this date, the 63rd congress 191915 passed the clayton antitrust act p. An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes. The passing of the clayton antitrust act was considered to be prompted by a variety of catalysts, which included the monopolization of commercial markets, unethical commercialpricing strategies, consumer protection, employee protection, and the presumed vagueness within.
An act of october 15, 1914, public law 63212, 38 stat 730. Enacted in 1890, the sherman act had been the first federal. In addition, the attorney general may sue under section 15 of the clayton act to enjoin conduct threatening a clear and irreparable harm to the national interest. The clayton antitrust act 1914 forbade several practices that destroyed competition or. 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. Be it enacted by the senate and house of representatives of the united states of america in congress. The hartscottrodino act added a section to the clayton act allowing a state attorney general to sue under antitrust. The clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The private plaintiffs remedies the right of a private party, who is injured in his business or property by reason of a violation of federal antitrust law, to sue for. The clayton act the clayton act is a civil statute carrying no criminal penalties that was passed in 1914 and significantly amended in 1950. The clayton antitrust act of 1914, was enacted on october 15, 1914, with a goal of strengthening provisions of the sherman antitrust act.
Clayton antitrust act summary, history, significance. The clayton antitrust act of 1914 was a part of united states antitrust law with the goal of adding further substance to the u. Introduction the federal trade commission ftc or commission and the department of justice doj have the authority under section 7 of the clayton act section 7 to bring suit to. Some of these general practices regulated by the clayton act are. The word person or persons wherever used in this act shall be deemed to include corporations and associations existing under or authorized by the laws of either the united states, the laws of any of the. What is the sherman antitrust act and the clayton act. 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. Passed in 1914, the clayton act regulates general practices that may be detrimental to fair competition. With the sherman act in place, and trusts being broken up, business practices in america were changing. Some sections have been edited or eliminated because of space concerns. Clayton antitrust act var en amerikansk antitrustlag.
Before the clayton antitrust act of 1914, there was the sherman antitrust act. The key pieces of antitrust legislation in the united statesthe sherman antitrust act of 1890 and the clayton act of 1914contain broad language that has afforded the courts wide latitude. The robinsonpatman act is an amendment to the 1914 clayton antitrust act and is supposed to prevent. Clayton act allowing a state attorney general to sue under antitrust laws on behalf of the states citizens in a parens patriae action. 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. Definition of clayton antitrust act an amendment passed by the u. Full text of the clayton act see other formats stop early journal content on jstor, free to anyone in the world this article is one of nearly 500,000 scholarly works digitized and made freely available to. Clayton act article about clayton act by the free dictionary.
The clayton act of 1914 is an example of which of the following. The clayton act declared that unions were not unlawful under the sherman antitrust provisions, and workers compensation bills were passed in most states. The hartscottrodino act hsr, adding section 7a of the clayton act, is listed separately. The clayton antitrust act of 1914 pearson education. Through this lesson, you will learn about antitrust laws and why they are important in u. Ftc jointly enforce the clayton act, the primary federal merger enforcement statute. Us antitrust law and policy in historical perspective harvard. The clayton antitrust act 1914 the clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. History project by emily carpentier, constantine banez and rachel miyagawa.
Nov 10, 2014 history project by emily carpentier, constantine banez and rachel miyagawa. House of representatives, where the act passed by a vote of 277 to 54 on june 5, 1914. The clayton act declared that unions were not unlawful under the sherman antitrust. Enacted in 1890 it was fairly limited in scope and was intended to prohibit unscrupulous business.
The word person or persons wherever used in this act shall be deemed to include corporations and associations existing under or authorized by the laws of either the united states, the laws of any of the territories, the laws of any state, or the laws of any foreign country. Sherman act 7 foreign trade antitrust improvements act of 1982, 15 u. Jun 19, 2018 the purpose of the clayton act was to give more enforcement teeth to the sherman antitrust act. The purpose of the clayton act was to give more enforcement teeth to the sherman antitrust act. The online tool for teaching with documents, from the national archives. The clayton act, 1914 makes it unlawful for any person engaged in. The clayton act allows those injured by violations of either act to bring federal court actions for treble damages. One of the important new freedom progressive reforms. The clayton antitrust act of 1914 accomplished all of the following except providing longterm legal protection for unions to engage in organizing, collective bargaining, and strike activities. Clayton act of 1914 clayton act of 1914\federal trade. Section 8 was enacted in 1914 to remove any temptation for corporations to coordinate their activities through a shared board member.
The clayton act the clayton act is a civil statute carrying no criminal penalties that was passed in 1914 and. Clayton act allowing a state attorney general to sue under antitrust laws on behalf of the states citizens in a. Pdf the evolution ofantitrust law in usa researchgate. But some companies discovered merging as a way to control prices and production instead of forming trusts, competitors united into a single company. 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. What presidential action illustrated the limits of woodrow wilsons progressivism.
The ftc, which has authority to enforce the clayton act, as well as engage in other consumer protection activities, was created the same year. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act. The clayton antitrust act us house of representatives. Clayton antitrust act of 1914 the clayton antitrust act of 1914 made good some of the deficiencies of the sherman antitrust act of 1890. 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. A federal law enacted in 1914 as an amendment to the sherman antitrust act 15 u. In united states competition law is expressed in the form of antitrust. The clayton antitrust act of 1914, codified at 15 u. The clayton act and federal trade commission acts of 1914 are. Clayton antitrust act 1914 strength in the sherman antitrust act protected labor unions from antitrust action samuel.
An act of october 15, 1914, public law 63212, 38 stat 730, to supplement existing laws against unlawful restraints and monopolies, and for other purposes. The sherman antitrust act of 1890, the clayton act of 1914, the robinsonpatman act of 1936, and the federal. The clayton antitrust act 1914 carnegie mellon university. The clayton act prohibits mergers or acquisitions that are likely to lessen competition. The clayton act of 1914 was one of the major pieces of legislation of the progressive era in american history. Wilson delivered on his promise with passage of the clayton antitrust act on october 15, 1914. It extended the sherman antitrust act of 1890, acting as one of the. Though the senate passed its own version on september 2, 1914, by a vote of 4616, the final version of the law. Passed in 1914, the clayton act regulates general practices that may be detrimental to. Answer to the clayton act of 1914 is an example of which of the following. You will also see why the clayton antitrust act of 1914 is so important to us in the. Sherman act and the 1914 clayton act, which have been refined through amendment over time. The clayton antitrust act was much more effective than the earlier sherman antitrust act and gave the. The private antitrust action was created in 1890 as part of the sherman antitrust act.
Conduct involving trade or commerce with foreign nations. The private plaintiffs remedies the right of a private party, who is injured in his business or property by reason of a violation of federal antitrust law, to sue for treble damages is as old as federal antitrust law itself. The trusts issue culminated in the passage of the clayton act in1914, which conventional wisdom holds was a response to theperceived ineffectiveness of the. Some of the provisions of the clayton antitrust act appear here. A brief overview of american antitrust law pdf 249kb. It prohibited four specific types of monopolistic practices. Though the senate passed its own version on september 2, 1914, by a vote of 4616, the final. A corporate guideline of ethics needs to go beyond the issues covered by legislation. The passing of the clayton antitrust act was considered to be. Congress as an amendment to clarify and supplement the sherman antitrust act of 1890.
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