The Sherman Act Of 1890 - 1512 Words

A Sherman Act of 1890 The Sherman Act of 1890 as referenced in McConnell and Campbell (2011), consists of two main regulations; †¢ Section 1 â€Å"Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared to be illegal.† †¢ Section 2 â€Å"Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the trade or commerce among the several states, or with foreign nations, shall be deemed guilty of a felony† (as later amended from â€Å"misdemeanor†). (p.375) The historical context of the Sherman Act lies in the corporate climate of the United States during the time period preceding the creation of these antitrust laws. At that time the market was dominated by several monopolies in industries such as railroads, tobacco production, meatpacking and coal mining. The US Government determined the monopolies did not provide enough fair competition in those industries to provide protection of consumers. The Sherman Act of 1890 created the legislation to declare the existing monopolies illegal and made violation of the Act a felony, essentially deeming the existing monopolies in violation of the law. These two regulations made common practices such as price fixing and market divisions illegal. The Sherman Act would open the doors for individuals and government agencies such as the U.SShow MoreRelatedThe Sherman Anti Trust Act Of 1890 Essay1278 Words   |  6 PagesAnti-Trust The Sherman Anti-Trust Act of 1890 was passed to prohibit trusts, this was the first law passed by U.S. Congress to enforce this. This act was named after Senator John Sherman. Before this act was put into place, many other states had enforced laws very similar to the Sherman Anti-Trust Act. These laws were not perfect though, the large corporations had the majority of the economic power. Congress was not pleased with this, thus making the Sherman Anti-Trust Act. This act allowed CongressRead MoreAnalysis Of The Sherman Anti Trust Act Of 18901682 Words   |  7 Pagesprices of their products. This is classified as a horizontal agreement because it involves competitors. They do this in order to manipulate prices to gain an unfair advantage. The government has a law in place for this issue called the Sherman Anti-Trust Act of 1890. This law requires each company to set its prices and other terms on its own. Generally, the consumer expects the price of a product to be determin ed by the current supply and demand. This is not the case with price fixing, as competitorsRead MoreAntitrust Laws And The Federal Branch Of The United States Government1128 Words   |  5 Pagesantitrust laws, the Sherman Antitrust Law, the Clayton Act, and the Federal Trade Commission Act. 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Section 1 primarily prohibits any contract or action whose aim is an Read MoreMarket Competition1030 Words   |  5 Pagesthere is the Sherman Act of 1890 outlawed restraints on trade and monopolization. (McConnell Brue, 2008, p 375) Due to the controversy over the interpretation of the Sherman Act of 1890, the Clayton Act of 1914 was introduced. This piece of legislation was an elaboration of the Sherman Act of 1890 that strengthened this act as well as outlawing price discrimination, prohibited tying contracts, and prohibited interlocking directorates. (McConnell Brue, 2008, p 376) This Act was intended toRead MoreThe Copyright Of The Sherman Antitrust Act1662 Words   |  7 PagesWith these arguments going on, discussions of the Sherman Antitrust Act in many legal cases, have been whether or not this law is beneficial to our economy and population, or harmful. People have gathered on both sides of this debate looking for the truth behind the effect of the Sherman Antitrust act. To learn how the Sherman Antitrust Act works we must look bac k to when and why it was created. In the past, and even now, the Sherman Antitrust Act has been and is being misunderstood, but if weRead MoreNative American Removal Act ( Indian Removal )983 Words   |  4 PagesMontana, Washington, and California (Youngs). On May 28, 1830, the Indian Removal Act was passed. It stated that the Native American were to be removed from the Southern states (Indian Removal Act). The act ended the Native American’s right to live in the states under their own traditional laws (Indian Removal Act). They were given the options to assimilate and acknowledge the United States’ laws or leave (Indian Removal Act). They were forced to leave their land, their homes, everything they ever knewRead MoreThe Progressive Era ( 1900-1919 )1544 Words   |  7 PagesGilded Age (1877-1900). One of the best examples of this was shown in the correlation between the Clayton Anti-Trust Act and Sherman Anti-Trust Act. The Sherman Anti-Trust Act was established in 1890, with the purpose of combatting oppressive monopolies and big businesses. The federal law prohibited the signing of any trust, lease, or contact in the limits of foreign trade. The act also states that. â€Å"Every person who shall monopolize, or attem pt to monopolize, or combine or conspire with any otherRead MoreEssay about Sherman Anti-Trust Act (Constitutional Law)792 Words   |  4 PagesTo: Reader From: Re: Sherman Antitrust Act Facts John Davison Rockefeller was the founder of Standard Oil Company in 1870 and ran it until he retired in 1897. Standard Oil gained almost complete control over the oil refining market in the United States by underselling its competitors. Rockefeller and his associates owned dozens of corporations operating in just one state. The Sherman Antitrust Act was enacted on July 2nd, 1890 which prohibits activities that restrict interstate commerce