Sherman Antitrust Act - Essay Example

Only on StudentShare

Extract of sample
Sherman Antitrust Act


The Sherman Act is also a consumer protection measure that ensures a single company will not monopolize a product, service or industry in a way that deprives consumers of a reasonable choice of whom to do business with. This enables consumers to influence the pricing of products and services by leveraging their demand among multiple competing suppliers.
Despite the important purposes of the antitrust laws, Congress has seen fit to carve out various exemptions for certain types of businesses and activities. For each such exemption, there is a rationale, the merits of which can often be debated. Among the antitrust exemptions are the following:
One of the most debated - and maligned - exemptions to the antitrust laws is the exemption for professional baseball. It is an exemption that no other professional sport enjoys. The exemption was granted to Major League Baseball in 1922 by the U.S. Supreme Court, which held that baseball is a sport, not a business engaged in interstate commerce, and therefore antitrust laws do not apply (Stephenson, 2001, par. 2). The effect of this decision is that "owners can act in concert on many matters that a regulated business cannot" (par. 3). ...
Download paper

Summary

The Sherman Antitrust Act makes it a felony to engage in, or conspire to engage in restraint of trade; or to monopolize or attempt to monopolize interstate or international commercial activity (15 U.S.C.A. sections 1 and 2). The law imposes stiff penalties on corporations and individuals who engage in the proscribed activities, including steep fines and/or imprisonment.
Author : brantjohns

Related Essays

Introduction to Business Law - Acts
The Comstock Act of 1890, named after its chief proponent Anthony Comstock, was enacted to safeguard the society's moral fiber, aimed at safeguarding American society against the destructive effects of "obscene, lewd, and lascivious" books. Upon its enactment, it made it illegal to "selloffer to sell, or to lend, or to give away, or in any manner to exhibit, or shall otherwise publish or offer to publish in any manner an obscene book, pamphlet, paper, writing, or other representation of article of an immoral nature" (Comstock Law 1873). Despite its good intentions, which was meant to target...
2 pages (502 words) Essay
Business Law
2). On the other hand, the Clayton Antitrust Act, another antitrust law of the United States of America, prohibits "exclusive dealings", "mergers or acquisition" if these acts substantially lessen competition (15 U.S.C., secs. 14 and 18)....
5 pages (1255 words) Case Study
Explain and discuss how Wilson and Roosevelt changed the role of the presidency in legislative initiatives and how they made the presidency more powerful during
He used the Sherman Anti-trust Act of 1890 to do what no one before him had been able to accomplish: attacking the huge Northern Securities Company, which held a monopoly over railroads in the northwest. He filed dozens of antitrust suits ("The Sherman Antitrust Act"). Though his efforts were aggressive, he realized he needed a different tact to achieve widespread victory over the trusts....
2 pages (502 words) Essay
contemporary recreation, sports, or tourism legal issue
The amount of lawsuit and the diversity of cases in the sports fraternity have been on a surge as more people rely on the courts to solve disputes. The laws have the required expertise to enable the smooth running of the sports. There exists variation as to the way the law is defined, one school of thought hold the view that a law is a congregation of regulations and rules that govern a particular action....
4 pages (1004 words) Essay
Legal Aspects of Business Decisions
This analysis forces courts to consider the pro-competitive effects of the restraint as well as its anticompetitive effects. Certain categories of restraints to be illegal per se: that is, they are conclusively presumed to be unreasonable and therefore illegal. For those types of restraints, the court does not have to go any further in its analysis than to recognize the type of restraint, and the plaintiff does not have to show anything other than that the restraint occurred. Three elements must be alleged to sustain a cause of action under section 1 of the Sherman Act, 15 U.S.C. 1 (1982): a...
1 pages (251 words) Essay
International Business Law: Case Studies
Partnership, another form of business organization, emerged as an improvement over sole-proprietorship. But, still it could not cope up with the growth in economic activities. Moreover, partnership, too, has its limitations. The financial resources are limited to the extent of capital provided by its partners and their borrowing capacity. The managerial skills of partners are also limited. Again in sole-proprietorship and partnership, the liability of owner/owners is unlimited. Thus to have monopoly and zero competition against their business rivals firms are secretly agreeing upon cartel...
4 pages (1004 words) Essay
Business Law: Antitrust Laws
920). Before 1890, firms were able to do this legally by joining a business trust. The Standard Oil trust of the late 1800’s was a prime example of this, but in turn reflected the negative effects that legal trusts incurred. Many felt that the Standard Oil trust had so much economic power that other corporations which did not belong to the trust could not compete in the marketplace (920)....
3 pages (753 words) Term Paper
Got a tricky question? Receive an answer from students like you! Try us!