Violation of Antitrust Law - Essay Example

Legislation enacted by the federal and the other States of USA to regulate trade and commerce aims to prevent unlawful business practices, fixation of price, not to encourage monopolistic environment, to promote competition, and to encourage quality of goods and services at the reasonable prices, with the primary objectives of safeguarding public interest. It ensures that consumer demands will be met at an affordable rate (West’s Encyclopedia of American Law 1997).

However, cited law encourages healthy competition in business and trade. This law has impacted positively on the business practices of the organization of the United States of America as far its industry is concerned. No doubt free market economy reaps free trade benefits, businesses, and consumers the consumers as well. These have been classified into four main areas a) agreements between competitors b) contractual arrangements between sellers and buyers c) maintenance of monopoly power and d) mergers (West’s Encyclopedia of American Law 1997).

The Sherman Anti-Trust Act of 1890 is the focal point for antitrust law which subsequently followed by the other States of the United States of America. The congress addressed the weaknesses of given acts and amended it accordingly.