The U.S. government has implemented a number of laws over the years to ensure the U.S. economy remains fair, competitive, and free of monopolies.
One such law has the following characteristics:
It is also a criminal law, and individuals and businesses that violate it may be prosecuted by the Department of Justice.
It imposes criminal penalties of up to $100 million for a corporation and $1 million for an individual.
It doesn't clearly prohibit mergers or interlocking directorates.
It outlaws "every contract, combination, or conspiracy in restraint of trade."
Which of the following laws is described by the characteristics described above?
A) The Hart-Scott-Rodino Act
B) The Clayton Act
C) The Sherman Act
D) The Robinson-Patman Act
E) The Federal Trade Commission (FTC) Act

Question

Quizplus · Accepted Answer

The characteristics described above match with the Sherman Antitrust Act, which outlawed any contract, conspiracy, or combination in restraint of trade. It imposes criminal penalties and is enforced by the Department of Justice. It doesn't clearly prohibit mergers or interlocking directorates, but it does prohibit any action that could lead to a monopoly or an attempt to monopolize any part of the economy.

The US Government Has Implemented a Number of Laws Over the the Years