joint ventures.
In essence, exemptions are allowed, as long as they do not act to restrain trade in the United States (West,
n.d.). Once restraint of trade becomes a factor, the practices are no longer exemptions and are subject to
antitrust laws.
Conclusion
The three main antitrust laws, namely the Sherman Act, the Clayton Act, and the Federal Trade Commission
Act, all work to prevent unfair trade practices that can substantially harm free competition. They also work to
protect consumers from practices that would control pricing or the ability to buy or engage in services. They
prevent companies from taking actions that would allow them to become too big or too powerful, thus
controlling how, and what, consumers and other businesses can do.
Assessment Questions
1. All of the following are forms of restraint of trade that company might use to reduce competition except:
a.
Monopolies.
b.
Oversupply.
c.
Price-fixing.
d.
Mergers.
2. What is a Business Trust?
3. Distinguish between naked restraint and ancillary restraint.
4. What was the first antitrust law enacted?.
a.
The Clayton Act.
b.
The Federal Trade Commission Act.
c.
The Antitrust Act.
d.
The Sherman Act.
5. What was the original purpose of antitrust legislation?
6. What recourse does the FTC have if an individual or company engages in an unfair trade practice?
a.
Consent order.
b.
Administrative complaint.
c.
Litigation.
d.
All of the above.
7. Each state has its own Antitrust law.
a.
True.
b.
Fasle.
8. Which of the following is not prohibited by the Sherman Act?
a.
Temporary limited restraints.
b.
Temporary restraints.
c.
Naked restraints.
d.
Ancillary restraints.
Chapter 11 Antitrust Law
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