Section 4 of the clayton act 1914 allows the recovery of damages by any person injured in his business or property by reason of anything forbidden in the antitrust laws section 4, clayton act. The act entitles a successful private claimant to an award of triple damages and costs including a reasonable. By the turn of the 20th century, large corporations had cornered whole segments of americas economy using predatory pricing, exclusive dealings, and anticompetitive mergers to drive local businesses to ruin. With the sherman act in place, and trusts being broken up, business practices in america were changing. After the enactment of the sherman act in 1890, regulators found that the act contained certain weaknesses that made it impossible to fully prevent anticompetitive businesses practices in the united states. Enacted in 1890, the sherman act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts.
In september of 1914, president woodrow wilson addressed the teamsters convention. This event was a major milestone for tobin and the teamsters. The act entitles a successful private claimant to an award of triple damages and costs including a. Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act 1890. Senator john sherman of ohio, who was an expert on the regulation of commerce. The purpose of the clayton act was to give more enforcement teeth to the sherman antitrust act. The empirical findings strongly support the wealth transferhypothesis. The clayton antitrust act was much more effective than the earlier sherman antitrust act and gave the government the power to protect both competition and consumers by restricting certain unhealthy business practices. Enacted in 1890 it was fairly limited in scope and was intended to prohibit unscrupulous business practices that.
The clayton antitrust act is an amendment passed by u. Clayton antitrust act legal definition merriamwebster law. Dec 22, 2019 the clayton antitrust act of 1914 was an addition to the sherman antitrust act of 1890 that protected consumers against harmful, anticompetitive business arrangements such as monopolies and cartels by defining prohibitions and an enforcement scheme. Sherman antitrust act, first legislation enacted by the united states congress 1890 to curb concentrations of power that interfere with trade and reduce economic competition. The union was now a key player in the political realm and a powerful force in the labor movement. The clayton antitrust act of 1914, was enacted on october 15, 1914, with a goal of strengthening provisions of the sherman antitrust act. Conduct involving trade or commerce with foreign nations. Congress passed the first antitrust law, the sherman act, in 1890 as a comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade. The clayton antitrust act 1 the clayton antitrust act united states congress 1 overview the clayton antitrust act 1914 forbade several practices that destroyed competition or prevented new businesses from forming. The united states of america introduced the clayton antitrust act in october 15, 1914. The core provisions are found in the 1890 sherman act and the 1914 clayton act, which have been refined through amendment over time. One of the important new freedom progressive reforms, attacks against unfair business practices and federal laws.
The clayton antitrust act of 1914, codified at 15 u. The clayton antitrust act attempts to prohibit certain actions that lead to anticompetitiveness. Clayton antitrust act article about clayton antitrust. The same year, the ftc act was passed, creating the federal trade commission. The sherman antitrust act of 1890 was the first such law. The clayton act specified particular prohibited conduct, the threelevel enforcement scheme. The clayton antitrust act 1914 the clayton antitrust act is comprised of 12, 1419, 20, 21, 2227 of title 15. The clayton act, authored by alabama congressman henry clayton, outlawed, among other things, anticompetitive mergers and acquisitions, interlocking directorates, and price discrimination. The clayton antitrust act of 1914 was an addition to the sherman antitrust act of 1890 that protected consumers against harmful, anticompetitive business arrangements such as monopolies and cartels by defining prohibitions and an enforcement scheme.
According to johnston and johnston 256, the act aimed to deter unfair business practices such as monopolistic market structures, which affect negatively the consumers due to lack rivalry in the market. The clayton antitrust act is a federal law passed in 1914 amending the sherman antitrust act and expanding the federal governments power to regulate trusts and monopolies. The clayton act sought to enhance and address weaknesses in the sherman act by preventing such unfair or anti. Clayton antitrust act summary, history, significance. The inspiration and motivation for this act started in 1890, when the sherman act was passed. Before the clayton antitrust act of 1914, there was the sherman antitrust act. Congress responded to populist antitrust sentiments and deficiencies in the sherman antitrust act of 1890 with a new act. Be it enacted by the senate and house of representatives of the united states of america in congress assembled, that antitrust laws, as used herein, includes the act entitled an act to protect trade and commerce against unlawful restraints and monopolies, approved july second, eighteen. United states code title 15 commerce and trade chapter 1 monopolies and combinations in restraint of trade. What are some historical people and events related to the clayton antitrust act.
The empirical findings strongly support the wealth transferhypothesis, and the. Some of these general practices regulated by the clayton act are. Congress in 1914 that provides further clarification and substance to the sherman antitrust act of 1890. Dec 22, 2019 upon proof being made, at any hearing on a complaint under this section, that there has been discrimination in price or services or facilities furnished, the burden of rebutting the primafacie case thus made by showing justification shall be upon the person charged with a violation of this section, and unless justification shall be affirmatively shown, the commission is authorized to issue an. An injunction is a judicial order that stops the conduct in question. Although a frequent critic of the president during his first two years in the white house, wilson graciously thanked tobin for his role.
Clayton antitrust act 1914 812 words essay example. An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes. The act, signed into law by woodrow wilson in 1914, outlaws unfair methods of competition and outlaws unfair acts or practices that affect commerce. Clayton antitrust act apush questions focus on the reasons for and impact of this key legislation. Federated womens club the general federation of womens clubs gfwc, founded in 1890 during the progressive movement, is a federation of over 3,000 womens clubs.
In 1914, congress passed two additional antitrust laws. Department of justice has the authority to prevent or modify anticompetitive mergers. Whereas the sherman act only declared monopoly illegal, the clayton act defined as illegal certain business practices that are conductive to the formation of monopolies or that result from them. The clayton antitrust act is a united states antitrust law that was enacted in 1914 with the goal of strengthening the sherman antitrust act. The clayton antitrust act provides barriers to a broad range of anticompetitiveness issues. Sherman act 7 foreign trade antitrust improvements act of 1982, 15 u. Congress in 1914 that provides further clarification and substance to the sherman antitrust act of 1890 on topics. Passed in 1914, the clayton act regulates general practices that may be detrimental to fair competition. It extended the sherman antitrust act of 1890, acting as one of the governments chief weapons against trusts. Clayton antitrust act project gutenberg selfpublishing. But the claim correctly expresses an intuition that the buying and selling of labor is different from the exchange of other commodities. But some companies discovered merging as a way to control prices and production instead of forming trusts, competitors united into a single company. The clayton antitrust act built heavily on this earlier law to provide.
Clayton antitrust act, law enacted in 1914 by the united states congress to clarify and strengthen the sherman antitrust act. Some sections have been edited or eliminated because of space concerns. Clayton antitrust act article about clayton antitrust act. Clayton antitrust act legal definition merriamwebster. The clayton act allows those injured by violations of either act to bring federal court actions for treble damages. The clayton antitrust act us house of representatives. Clayton act of 1914 clayton act of 1914\federal trade. On this date, the 63rd congress 191915 passed the clayton antitrust act p.
The clayton act builds on the sherman antitrust act by prohibiting mergers and acquisitions determined to be harmful to competition under the clayton act, private parties consumers and competitors are allowed to bring an antitrust lawsuit against companies who. Note also that a, b, and 21a comprise the robinsonpatman price discrimination act 1936. The clayton antitrust act of 1914 enacted october 15, 1914, was a part of united states antitrust law with the goal of adding further substance to the u. The hartscottrodino act added a section to the clayton act allowing a state attorney general to sue under antitrust. American federal antitrust law has developed in common law style, through the accretion of judicial precedents over more than a century. The clayton antitrust act, passed in 1914 by the united states congress, was one in a series of laws developed in the united states to address fair market competition and the need for regulation of business in response to the economic booms of the industrial age.
The clayton act home alphabetic chronological legal area product full textsearch key statutes glossary links antitrust. The federal trade commission act of 1914 established the federal trade commission. Aug 31, 2017 the clayton antitrust act was part of the early 20thcentury efforts to curb the power of big businesses. The trusts issue culminated in the passage of the clayton act in1914, which conventional wisdom holds was a response to theperceived ineffectiveness of the sherman antitrust act of 1890. What is the sherman antitrust act and the clayton act. Clayton antitrust act 1914 strength in the sherman antitrust act protected labor unions from antitrust action samuel gompers liked the clayton act this was wilsons major campaign against the triple wall of privilege 2. Clayton antitrust act overview and history, sections. The university of oxford centre for competition law and policy. The clayton act builds on the sherman antitrust act by prohibiting mergers and acquisitions determined to be harmful to competition.