What act was enacted in 1914 to broaden the provisions of the Sherman Act by prohibiting exclusive contracts and predatory pricing?

What act was enacted in 1914 to broaden the provisions of the Sherman Act by prohibiting exclusive contracts and predatory pricing?

• A. Wheeler-Lea Act
• B. Federal Trade Commission Act
• C. Clayton Antitrust Act
• D. Robinson Patman Act

Answer: (C)

The correct response is the Clayton Antitrust Act. This legislation was enacted to enhance the Sherman Antitrust Act's provisions, specifically targeting practices that could undermine fair competition. One of the key aspects of the Clayton Act was its focus on prohibiting certain anti-competitive practices, such as exclusive contracts, which can restrict a competitor's market access and consumer choice. Additionally, it addresses predatory pricing, which refers to the strategy of setting prices low to eliminate competition, only to raise prices once competitors are out of the market. The Clayton Act established clearer guidelines regarding what constitutes unfair competition, allowing the government to take action against business practices that could harm consumers or inhibit competition. This act is fundamental in the context of U.S. antitrust laws, as it works in conjunction with the Sherman Act to create a more comprehensive framework for regulating corporate behavior. Thus, its enactment represented a significant step toward promoting fair competition in the marketplace.

The correct response is the Clayton Antitrust Act. This legislation was enacted to enhance the Sherman Antitrust Act's provisions, specifically targeting practices that could undermine fair competition. One of the key aspects of the Clayton Act was its focus on prohibiting certain anti-competitive practices, such as exclusive contracts, which can restrict a competitor's market access and consumer choice. Additionally, it addresses predatory pricing, which refers to the strategy of setting prices low to eliminate competition, only to raise prices once competitors are out of the market.

The Clayton Act established clearer guidelines regarding what constitutes unfair competition, allowing the government to take action against business practices that could harm consumers or inhibit competition. This act is fundamental in the context of U.S. antitrust laws, as it works in conjunction with the Sherman Act to create a more comprehensive framework for regulating corporate behavior. Thus, its enactment represented a significant step toward promoting fair competition in the marketplace.