Asked by ka ki cheng on Jun 09, 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. Antitrust law enacted in 1914 aimed at promoting fair competition and preventing unfair business practices, including price discrimination and exclusive dealings.
Price Discrimination
The selling of a product to different buyers at different prices when the price differences are not justified by differences in cost.
Tying Contracts
Agreements where the seller of a product or service requires the buyer to also purchase a secondary product or service.
- Compare the fundamental differences among the primary antitrust policies: Sherman Act, Clayton Act, Federal Trade Commission Act, and Celler-Kefauver Act.
Verified Answer
AA
Alexzandra Azi JavierJun 10, 2024
Final Answer :
A
Explanation :
The Clayton Act of 1914 outlawed price discrimination, tying contracts, acquisition of stocks of competing corporations, and interlocking directorates that lessen competition. It also established the Federal Trade Commission to enforce the provisions of the act. Option B is referring to the Federal Trade Commission Act of 1914, option C is not entirely correct as vertical and conglomerate mergers are not outright outlawed, and option D is referring to the Clayton Antitrust Act of 1914, not the Clayton Act.
Learning Objectives
- Compare the fundamental differences among the primary antitrust policies: Sherman Act, Clayton Act, Federal Trade Commission Act, and Celler-Kefauver Act.