maintain unrestrained trade and prevent the few from having too much power over the many.
Sources
Federal Trade Commission (n.d.). The antitrust laws. Retrieved from: https://www.ftc.gov/tips-advice/
competition-guidance/guide-antitrust-laws/antitrust-laws.
Jurist (2013). History of antitrust laws. Retrieved from: https://www.jurist.org/archives/feature/a-history-and-
the-main-acts/.
United States Department of Justice (n.d.). Antitrust laws and you. Retrieved from: https://www.justice.gov/
atr/antitrust-laws-and-you.
West’s Encyclopedia of American Law (n.d.). Antitrust law. Retrieved from: >http://iris.nyit.edu/~shartman/
mba0101/trust.htm.
11.2
Antitrust Laws
Antitrust legislation was designed to prevent unfair restrictions on trade and to maintain equal opportunity for
trade for businesses and consumers alike. Throughout the history of antitrust laws, legislation has become
more comprehensive and structured to keep up with the business practices of larger corporations that
continue to seek advantages and control through trade practices.
What Do Antitrust Laws Do?
Antitrust laws were created to prevent unlawful mergers and business practices that could lead to restraint of
trade by others (Federal Trade Commission, n.d.). The laws themselves are somewhat general to allow the
courts the ability to make decisions on these practices, based on changing times and markets (Federal Trade
Commission, n.d.). The three main antitrust laws that are in effect have been in effect for over 100 years and
through many changes in society—from an industrial age to a technological age, and the changing markets
they represent. The federal government created and enforces these three main antitrust laws:
•
The Sherman Antitrust Act
•
The Clayton Act
•
The Federal Trade Commission Act
Each state has its own antitrust laws that pertain to trade practices within each separate state, but federal laws
are able to reach beyond the states to interstate trade.
The Sherman Antitrust Act
The Sherman Act was passed in 1890 and focused on trade restraints that were considered unreasonable
(Federal Trade Commission, n.d.). This Act did not prohibit all forms of trade restraint, since the courts did not
see temporary limited restraints as an issue at the time. A partnership agreement that limited trade to certain
areas for certain partners was considered acceptable. The courts deemed some trade restrictions as
unreasonable, such as price fixing (Federal Trade Commission, n.d.). In some cases, the violation was so
apparent that the violation was considered prima facie, or so evident that it automatically satisfied the
unreasonable standard (Jurist, 2013).
Chapter 11 Antitrust Law
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