Sherman Antitrust Act - Growth Of A Trust In The Late Nineteenth Century, What Is A Trust?, Congress Passes The Sherman Antitrust Act Of 1890
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Excerpt from the Sherman Antitrust Act of 1890
Reprinted from The Statutes at Large and Proclamations of the United States of America from December, 1889, to March, 1891, Vol. XXVI
Published in 1891
Since 1890 the Sherman Antitrust Act has been the key law representing America's commitment to a free market economy. A free market economy, one where competition operates free from private or government restraints, assures the best goods and services at the lowest prices for consumers. The Sherman Antitrust Act outlaws any business "combination" or "conspiracy" that unreasonably restrains trade or commerce between states and foreign nations.
In the act, restraining trade or commerce means hindering or preventing competition. Agreements or "conspiracies" among competitors to fix prices, rig a bidding process for a contract, or divide up a customer base are all examples of illegal competition. The act also forbids a company to "monopolize or attempt to monopolize" a product or service by using unreasonable or unfair methods. A business monopoly is the complete control over the manufacture and distribution of a product, or control of a service by one company thereby eliminating competition.
For More Information
Books
Hovenkamp, Herbert. Antitrust. St. Paul, MN: West Group, 1999.
Shenefield, John H., and Irwin M. Stelzer. Antitrust Laws: A Primer. Washington, DC: AEI Press, 2001.
The Statutes at Large and Proclamations of the United States of America from December 1889 to March 1891, Vol. XXVI. Washington, DC: U.S. Government Printing Office, 1891.
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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Sec. 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or engage in any such combination or …
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Trust: A company that controls other companies and unfairly limits competition. Conspiracy: A scheme or agreement to work together. Restraint: To reduce or inhibit. Misdemeanor: A lesser or minor crime. Discretion: Choice. Territory of the United States: Countries such as Puerto Rico and Guam. District of Columbia: Washington, DC. Invested with jurisdiction: Provided the legal authority. Institute…
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