Interlocking directorates are
A)legal if the two firms have small market shares.
B)illegal under provisions of the Federal Trade Commission Act of 1914.
C)illegal under provisions of the Celler-Kefauver Act of 1950.
D)illegal under provisions of the Clayton Act of 1914.

Question

Quizplus · Accepted Answer

Interlocking directorates are illegal under the provisions of the Clayton Act of 1914, which was designed to prevent anticompetitive practices in their incipiency. This includes prohibiting directors from serving on the boards of competing companies to prevent collusion and ensure fair competition.

Interlocking Directorates Are