Asked by David Williams on May 08, 2024
Verified
Which of the following is directly illegal under the Sherman Act?
A) Price discrimination.
B) Tying contracts.
C) Price-fixing.
D) Interlocking directorates.
Sherman Act
An 1890 United States antitrust law that outlaws monopolistic practices and promotes competition.
Price-fixing
An illegal agreement among competitors to set prices at a certain level, rather than competing naturally in the market.
Tying Contracts
Agreements where the sale of one product (the tying product) is conditioned on the buyer purchasing another product (the tied product).
- Highlight the differences among the foremost antitrust regulations: Sherman Act, Clayton Act, Federal Trade Commission Act, and Celler-Kefauver Act.
Verified Answer
NT
Nguy?n Tr?ngMay 14, 2024
Final Answer :
C
Explanation :
Price-fixing is directly illegal under the Sherman Act as it involves agreements between competitors to set prices at a certain level, which eliminates competition and harms consumers. Price discrimination, tying contracts, and interlocking directorates may also be illegal under certain circumstances, but are not directly prohibited by the Sherman Act.
Learning Objectives
- Highlight the differences among the foremost antitrust regulations: Sherman Act, Clayton Act, Federal Trade Commission Act, and Celler-Kefauver Act.