List the major antitrust acts of the United States. Explain why each act was created, whether it was effective or ineffective, and what each act did regarding fighting monopolies and creating fair competition. Respond with 2 sentences per act(4 points)

Answer 1

Here’s a summary of the major antitrust acts in the United States:

1. Sherman Antitrust Act of 1890: This act was created to combat the monopolistic practices that were stifling competition and harming consumers in the late 19th century. It was effective in establishing a legal framework for addressing anti-competitive behavior and led to significant cases against major corporations, including Standard Oil and American Tobacco.

2. Clayton Antitrust Act of 1914: Enacted to address gaps in the Sherman Act, it sought to prevent anti-competitive practices like price discrimination and exclusive contracts that could harm small businesses. It was effective in providing clearer definitions of unfair business practices and establishing rights for individuals to sue for damages, enhancing the enforcement of antitrust laws.

3. Federal Trade Commission Act of 1914: This act created the Federal Trade Commission (FTC) to enforce antitrust laws and protect consumers from unfair business practices. It was effective in investigating and curtailing deceptive advertising and anticompetitive practices, significantly contributing to the promotion of fair competition.

4. Robinson-Patman Act of 1936: Designed to address issues of price discrimination between wholesale and retail level, this act aimed to protect small retailers from unfair pricing strategies by larger competitors. While it provided some protections, its effectiveness has been questioned due to difficulties in enforcement and the evolving nature of competitive practices in many industries.