Sherman Antitrust Act Flashcards, test questions and answers

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What is Sherman Antitrust Act?

The Sherman Antitrust Act of 1890 was an American federal statute that established the United States as a leader in antitrust law. The Act was passed by Congress and signed into law by President Benjamin Harrison on July 2, 1890. It is widely considered the first major piece of antitrust legislation in the United States, and it remains one of the most important pieces of legislation to this day.The primary purpose of the Sherman Antitrust Act was to prohibit monopolistic practices and promote competition between businesses. The Act declared any combination in restraint of trade or conspiracy or monopoly illegal under federal law. This included activities such as price-fixing, market division among firms, and other anti-competitive practices that limit entry into markets or reduce competition within them. The Act also stated that any attempt to create a monopoly would be subject to criminal prosecution. Since its passage, the Sherman Antitrust Act has been used to bring numerous actions against companies for anti-competitive behavior. These have included cases against Standard Oil Company (1911), Microsoft Corporation (1998), and AT Corporation (1982). In addition, many states have enacted their own antiturst laws based on the principles set forth in the Sherman Antitrust Act. Overall, it is clear that the Sherman Antitrust Act has had a significant impact on business activity across America since its enactment over 130 years ago.