Question

How did the case United States v. E.C. Knight weaken the Sherman Antitrust Act?
The Supreme Court ruled that the American Sugar Company was a legal monopoly since it existed only in one state.
The Supreme Court ruled that the American Sugar Company was a legal monopoly since it operated in several states.
The Supreme Court ruled in favor of the American Sugar Company since it controlled only fifty percent of the sugar-refining factories.
The Supreme Court ruled against the American Sugar Company since it controlled ninety-eight percent of the sugar-refining factories.

Answer 1

The first choice. The Court held that sugar refining was a local (manufacturing) activity—not interstate commerce—so the Sherman Act did not reach the American Sugar Company; that decision effectively allowed the trust even though it controlled about 98% of sugar refining.