Asked by Scott Johnston on May 11, 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
A foundational antitrust law in the United States aimed at prohibiting monopolies and other practices that restrain free competition.
Price-Fixing
An illegal agreement among competitors to fix, raise, or lower the price of a product or service, rather than allowing the market to determine prices naturally.
Interlocking Directorates
The practice of members of a corporate board of directors serving on the boards of multiple corporations, often leading to increased corporate cohesion and shared interests.
- Consider the historical and legal basis of antitrust rules and their amendments, notably the Sherman Act, Clayton Act, and Celler-Kefauver Act.
Verified Answer
KL
Kelley Law OfficeMay 13, 2024
Final Answer :
C
Explanation :
Price-fixing is directly illegal under the Sherman Act as it involves an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold, which directly restricts competition.
Learning Objectives
- Consider the historical and legal basis of antitrust rules and their amendments, notably the Sherman Act, Clayton Act, and Celler-Kefauver Act.