criminal, meaning that they would be tried as civil matters. The four acts are (West, n.d.):
•
Price discrimination, which occurs as the same product is sold to different buyers at different prices
•
Exclusive dealing contracts, which require buyers to purchase only from one business and not
competitors
•
Corporate mergers, which result in the acquisition of competing companies
•
Interlocking directorates, which are boards of competing companies with common members sitting on
each of the boards
The four acts would only be considered illegal when they create monopolies or substantially lessen
competition (West, n.d.). Unions were excluded from mention in the Clayton Act, as Congress did not wish to
treat human labor as a commodity (West, n.d.). This Act was still broad enough to rely on the courts for
interpretation and decisions on a case-by-case basis.
The Clayton Act was amended in 1976 to require companies planning larger mergers and acquisitions to notify
the government in advance and seek authorization (Federal Trade Commission, n.d.). This amendment also
provides individuals who are victims of these practices with the ability to sue for triple damages after harm is
established (Federal Trade Commission, n.d.).
The Federal Trade Commission Act
The Federal Trade Commission Act (FTC Act), also passed in 1914, focuses on unfair methods of competition
and deceptive acts or practices that impact commerce (West, n.d.). All acts that violate the Sherman Act also
violate the FTC Act (Federal Trade Commission, n.d.). The FTC Act works to fill in the gaps of the unfair practices
by condemning all anticompetitive behaviors not otherwise covered in the other federal antitrust laws (West,
n.d.).
Chapter 11 Antitrust Law
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