antitrust laws

study

What was the primary concern that led to the creation of antitrust laws in the late 1800s?

The formation of monopolies and trusts

Which of the following acts was the first federal antitrust law enacted in the United States?

The Sherman Antitrust Act

The Clayton Act focuses on criminal penalties for unfair trade practices.

False

Antitrust laws only apply to federal trade and do not have state-level regulations.

False

The Federal Trade Commission Act was created to oversee fair trade practices and enforce antitrust laws.

True

Business trusts were formed to increase competition among smaller companies.

False

The rule of reason allows courts to evaluate trade restraints based on their impact on competition.

True

The Sherman Act allows for civil penalties only, with no criminal implications.

False

The Clayton Act prohibits price discrimination only when it substantially lessens competition.

True

The Federal Trade Commission can seek remedies such as divestiture and dissolution for antitrust violations.

True

What does the term 'naked restraint' refer to in antitrust law?

The formation of monopolies and trusts

What is one of the main purposes of the Clayton Act?

To prevent unfair mergers and acquisitions

Which of the following is NOT considered an illegal act under the Clayton Act?

Advertising practices

What is the role of the Federal Trade Commission (FTC) in relation to antitrust laws?

To enforce antitrust laws and oversee fair trade practices

What can be a consequence for violating the Sherman Antitrust Act?

Criminal penalties including fines and imprisonment

Which of the following practices is considered a violation of antitrust laws?

Setting prices in agreement with competitors

Which of the following is an exemption to antitrust laws?

Labor unions organizing

What was President Theodore Roosevelt's role in relation to antitrust laws?

He was known as a 'trustbuster' who sought to enforce antitrust laws

Which of the following is NOT one of the four acts deemed illegal under the Clayton Act?

Price fixing

What is a significant limitation of the Sherman Antitrust Act?

It lacks clear and specific language

What is the consequence for companies found guilty of violating the Sherman Act?

Fines and possible imprisonment

What does the term 'divestiture' mean in the context of antitrust enforcement?

The sales of a subsidiary or division of a company