What is the Sherman Antitrust Act and why is it important?

What is the Sherman Antitrust Act? The Sherman Antitrust Act is the first antitrust legislation to be passed by the United States Congress. It was introduced during the term of US President Benjamin Harrison. The law was named after Ohio politician, John Sherman, who was an expert in trade and commerce regulation.

Is anticompetitive conduct illegal under the Sherman Act?

Over time, the federal courts have developed a body of law under the Sherman Act making certain types of anticompetitive conduct per se illegal, and subjecting other types of conduct to case-by-case analysis regarding whether the conduct unreasonably restrains trade.

How did the Sherman Act prevent restraints on competition?

Because many forms of restraint upon commercial competition extended across state lines so as to make regulation by state action difficult or impossible, Congress enacted the Sherman Act, 21 Cong.Rec. 2456. It was in this sense of preventing restraints on commercial competition that Congress exercised “all the power it possessed.”

What happens if a company violates the Sherman Act?

Corporations and individuals that violate the provision are guilty of a felony, and the Department of Justice can take legal action against them. The third section of the Sherman Act extends the provisions provided in sections one and two to the District of Columbia and US territories.

What Is the Sherman Antitrust Act? The Sherman Antitrust Act (the Act) is a landmark U.S. law, passed in 1890, that outlawed trusts —groups of businesses that collude or merge to form a monopoly in order to dictate pricing in a particular market.

What are treble damages under the Sherman Act?

Treble damages is In insurance law, the McCarran-Ferguson Act of 1945 ( 15 U.S.C. §§ 1011-1015) allows the Sherman Act to extend to the “business of insurance” only to the extent where: (1) such business is not regulated by state law ( § 1012 ), or (2) there are insurer or acts of, “boycott, coercion, or intimidation” ( § 1013 ).

What is an example of the Sherman Act?

For example, the Sherman Act says that competing individuals or businesses can’t fix prices, divide markets, or attempt to rig bids. The Act also laid out specific penalties and fines for violating its rules.

What is antantitrust and how is it enforced?

Antitrust are typically instituted by United States Attorneys in their respective districts. Federal district courts have the jurisdiction to enjoin actions which violate the Sherman Act.