Asked by ricardo Velazquez on May 26, 2024
Verified
The Clayton Act of 1914
A) outlawed price discrimination, tying contracts, acquisition of stocks of competing corporations, and interlocking directorates that lessen competition.
B) prohibited unfair or deceptive acts or practices in commerce that tend to reduce competition.
C) outlawed vertical and conglomerate mergers.
D) prohibited one firm from acquiring the assets of another when the effect was to limit competition.
Clayton Act
A U.S. legislation enacted in 1914 designed to enhance antitrust laws by prohibiting certain actions that could lead to anti-competitive practices.
Price Discrimination
The strategy of selling the same product or service at different prices to different groups of consumers, based on their willingness to pay or other factors.
Tying Contracts
Tying contracts are agreements where a seller requires a buyer to purchase a secondary product as a condition of buying a desired primary product, often considered anti-competitive in nature.
- Reflect on the historical and legal underpinning of antitrust laws along with their amendments, such as the Sherman Act, Clayton Act, and Celler-Kefauver Act.
Verified Answer
AM
Amber McMunnMay 28, 2024
Final Answer :
A
Explanation :
The Clayton Act of 1914 specifically targeted anti-competitive practices that the Sherman Act did not clearly prohibit, such as price discrimination, tying contracts, acquisition of stocks in competing corporations, and interlocking directorates, all with the aim of maintaining competition.
Learning Objectives
- Reflect on the historical and legal underpinning of antitrust laws along with their amendments, such as the Sherman Act, Clayton Act, and Celler-Kefauver Act.