The legislation that prohibited acquisition of stock of another company if this would significantly lessen competition is the
A) Federal Trade Commission Act.
B) Clayton Act.
C) Celler-Kefauver Act.
D) Wheeler-Lea Act.

Question

Quizplus · Accepted Answer

The Clayton Act of 1914 amended the Sherman Antitrust Act and specifically prohibited certain actions that would lessen competition, including the acquisition of stock of another company if it would substantially reduce competition. The Federal Trade Commission Act (A) created the Federal Trade Commission to regulate business practices, but did not directly address acquisitions. The Celler-Kefauver Act (C) amended the Clayton Act to extend its coverage to asset acquisitions rather than just stock acquisitions, but was not specific to prohibited acquisitions that would lessen competition. The Wheeler-Lea Act (D) was focused on prohibiting unfair and deceptive practices in interstate commerce, and did not address acquisitions or competition.

The Legislation That Prohibited Acquisition of Stock of Another Company