Interlocking directorates are

A) legal if the two firms have small market shares.
B) illegal under provisions of the Federal Trade Commission Act of 1914.
C) illegal under provisions of the Celler-Kefauver Act of 1950.
D) illegal under provisions of the Clayton Act of 1914.

Interlocking Directorates

Interlocking directorates occur when members of a company's board of directors also serve on the boards of other companies, which may lead to conflicts of interest or reduced competition.

Clayton Act

A U.S. law, enacted in 1914, aimed at increasing economic competition and preventing anticompetitive practices in their incipiency.

Federal Trade Commission Act

A landmark piece of legislation passed in 1914 aimed at promoting competition and protecting consumers from anticompetitive practices.