The clayton act sought to enhance and address weaknesses in the sherman act by preventing. The ftc, which has authority to enforce the clayton act, as well as engage in other consumer protection activities, was created the same year. The copyright act as set out in the first schedule and with the. Enacted in 1890 it was fairly limited in scope and was intended to prohibit unscrupulous business.
The hartscottrodino act added a section to the clayton act allowing a state attorney general to sue under antitrust. Enacted in 1890, the sherman act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts. Sherman act 7 foreign trade antitrust improvements act of 1982, 15 u. United states code title 15 commerce and trade chapter 1 monopolies and combinations in restraint of trade. The clayton act sought to enhance and address weaknesses in the sherman act by preventing such unfair or anticompetitive business practices in their infancy. Though the senate passed its own version on september 2, 1914, by a vote of 4616, the final version of the law written after deliberation between senate and the house, did not pass the senate until october 5 and the house until october 8 of the next year. The clayton antitrust act of 1914 a was used to justify the cries for american involvement in war in europe.
This act was enacted in the us to add further substance to the us antitrust law regime by seeking to prevent anticompetitive practices in their incipiency. 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. Clayton antitrust act, 1914 in the united states introduction to clayton antitrust act, labors magna carta, 1914 in the context of the legal history. The purpose of the clayton act was to give more enforcement teeth to the sherman antitrust act. An injunction is a judicial order that stops the conduct in question. 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. Guided reading as you read, consider the following questions. The clayton antitrust act of 1914 was a part of united states antitrust law with the goal of.
Before the clayton antitrust act of 1914, there was the sherman antitrust act. The clayton act allows those injured by violations of either act to bring federal court actions for treble damages. Passed in 1914, the clayton act regulates general practices that may be detrimental to fair competition. What is the sherman antitrust act and the clayton act. In 1914, congress passed two additional antitrust laws. Clayton antitrust act october 15, 1914 an act to supplement existing laws against unlawful restraints and monopolies, and for other purposes sec. Learn vocabulary, terms, and more with flashcards, games, and other study tools. With the sherman act in place, and trusts being broken up, business practices in america were changing. The clayton antitrust act provided further clarification and substance to the sherman antitrust act, addressing issues the older act didnt cover. The bill passed the house of representatives with a vast majority on june 5, 1914. 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. The clayton antitrust act 1914 the clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. The clayton antitrust act is a piece of legislation passed by the u.
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. 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. B was passed to guarantee an alliance between the u. The clayton antitrust act us house of representatives. The clayton act specified particular prohibited conduct, the threelevel enforcement scheme, the exemptions, and the. 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. A corporate guideline of ethics needs to go beyond the issues covered by legislation. It extended the sherman antitrust act of 1890, acting as one of the governments chief weapons against trusts. Clayton act of 1914 clayton act of 1914federal trade.
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 1914 812 words essay example. The clayton act was passed in 1914 and adds detail to the sherman act. 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 1914 forbade several practices that destroyed competition or prevented new businesses from forming. The robinsonpatman act is an amendment to the 1914 clayton antitrust act and is supposed to prevent unfair. Clayton act oxford reference a us act of 1914 extending federal antitrust law. 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. An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes. 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. Conduct involving trade or commerce with foreign nations. The united states of america introduced the clayton antitrust act in october 15, 1914. Clayton antitrust act, 1914 american legal encyclopedia.
C was declared unconstitutional in 1922 by the supreme courts decision in federal baseball club v. An act to diminish the number of cases committed to a. A federal law enacted in 1914 as an amendment to the sherman antitrust act 15 u. A federal law passed in 1936 to outlaw price discrimination.
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. The act, signed into law by woodrow wilson in 1914, outlaws unfair methods of competition and unfair acts or practices that affect commerce. Some of these general practices regulated by the clayton act are. The act allowed triple damages to those injured by breaches of antitrust law. Antitrust laws, as used herein, includes the act entitled an act to protect trade and commerce. Clayton antitrust act summary, history, significance. One of the important new freedom progressive reforms, attacks against unfair business practices and federal laws passed during his presidency was the clayton antitrust act.
The clayton antitrust act of 1914, codified at 15 u. That it shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly to discriminate in price between different purchasers of commodities. President woodrow wilson signed the initiative into law on oct. The clayton antitrust act was passed in 1914 during wilsons administration. Clayton antitrust act article about clayton antitrust. The clayton antitrust act of 1914 pearson education. About the clayton antitrust act of 1914 all federal. On this date, the 63rd congress 191915 passed the clayton antitrust act p. The clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. Extended the sherman antitrust act of 1890 to give it more power against trusts and big business. The university of oxford centre for competition law and policy. The clayton antitrust act 1914 carnegie mellon university. Some sections have been edited or eliminated because of space concerns.
Sherman act and the 1914 clayton act, which have been refined through amendment over time. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act. 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 clayton act home alphabetic chronological legal area product full textsearch key statutes glossary links antitrust. 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. 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.
It forbade price discrimination, tying arrangements and exclusive dealing, and the acquisition of another corporations stock where this led to monopoly or decreased competition. The clayton act declared that unions were not unlawful under the sherman antitrust provisions, and workers compensation bills were passed in most states. This is a compilation of the crimes act 1914 that shows the text of the law as amended and in force on 20 september 2017 the compilation date. Division 3apowers in relation to terrorist acts and terrorism offences. Wilson delivered on his promise with passage of the clayton antitrust act on october 15, 1914.
The federal trade commission act of 1914 established the federal trade commission. The clayton antitrust act of 1914 a was used to justify. Some of the provisions of the clayton antitrust act appear here. The clayton act passed by a vote of 277 to 54 on june 5, 1914. The act defines unethical business practices, such as.
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