If a firm acquires stock and assets of a competitor and the result is a decrease in competition, it may very well be in violation of the:
A) Sherman Antitrust Act.
B) FTC Act.
C) Robinson-Patman Act.
D) Clayton Act.

Question

Quizplus · Accepted Answer

The Clayton Antitrust Act specifically prohibits mergers and acquisitions that may substantially lessen competition or create a monopoly. This includes the acquisition of a competitor's stock and assets. Therefore, if a decrease in competition results from such an acquisition, it would be in violation of the Clayton Act. The other options (A, B, C) are also antitrust laws, but do not specifically address mergers and acquisitions.

If a Firm Acquires Stock and Assets of a Competitor