Asked by Avelina Milam on Jun 07, 2024
Verified
Section 7 of the Clayton Act prohibits mergers where evidence indicates that the merger:
A) is between companies who are solely engaged in intrastate commerce.
B) may have the effect of substantially lessening competition in any line of commerce.
C) involves companies that manufacture functionally uninterchangeable products.
D) involves companies that might fail if they were not allowed to merge.
Clayton Act Section 7
A provision of U.S. antitrust law that prohibits mergers and acquisitions that may substantially lessen competition or tend to create a monopoly.
Lessening Competition
refers to actions or agreements that reduce the level of competition in a market, potentially leading to monopolies or oligopolies.
- Comprehend the guidelines and legal frameworks governing mergers, as delineated in the Clayton Act.
Verified Answer
HB
Harish BhajanaJun 09, 2024
Final Answer :
B
Explanation :
Section 7 of the Clayton Act prohibits mergers where evidence indicates that the merger's effect,in any line of commerce or any activity affecting commerce in any section of the country,may be to substantially lessen competition or tend to create a monopoly.
Learning Objectives
- Comprehend the guidelines and legal frameworks governing mergers, as delineated in the Clayton Act.