A) List the major antitrust acts of the United States. Explain why each act was created, whether it was effective or ineffective, and what each act did regarding fighting monopolies and creating fair competition. (4 points)
1) Sherman Antitrust Act (1890) - The Sherman Antitrust Act was created to combat the formation of trusts and monopolies that were dominating various industries in the United States. It sought to promote fair competition and prevent anti-competitive business practices. The effectiveness of the Sherman Antitrust Act has been debated over the years, with critics arguing that it has not been very successful in breaking up monopolies. However, it has been instrumental in setting a precedent for antitrust law and shaping the enforcement of competition policy in the United States.
2) Clayton Antitrust Act (1914) - The Clayton Antitrust Act was enacted to strengthen and supplement the Sherman Antitrust Act. It sought to further regulate anticompetitive practices and prevent unfair business practices that restricted competition. The Clayton Act introduced provisions such as prohibiting price discrimination and tying arrangements. While the Clayton Antitrust Act was a step forward in antitrust enforcement, it has also faced criticisms for not being comprehensive enough to effectively combat monopolies.
3) Federal Trade Commission Act (1914) - The Federal Trade Commission Act established the Federal Trade Commission (FTC) as a regulatory agency to enforce antitrust laws and promote fair competition. The FTC works to prevent anticompetitive practices and unfair methods of competition, as well as investigate and prosecute violations of antitrust laws. The act aims to protect consumers from monopolistic behavior and promote market competition. The FTC has played a crucial role in enforcing antitrust laws and ensuring fair competition in various industries.
4) Robinson-Patman Act (1936) - The Robinson-Patman Act was enacted to prevent price discrimination and promote fair competition among businesses. It prohibits selling products at different prices to different buyers if it substantially lessens competition. The act aims to protect small businesses from unfair competition and ensure a level playing field in the marketplace. The effectiveness of the Robinson-Patman Act has been debated, with some arguing that it has not been fully successful in preventing price discrimination and promoting fair competition. Nevertheless, it has helped establish guidelines for pricing practices and competition policy in the United States.