Question
Here is the question : WHAT 1890 LAW AIMED TO PREVENT MONOPOLISTIC BUSINESS PRACTICES?
Option
Here is the option for the question :
- Alien and Sedition Act
- Sherman Antitrust Act
- Fair Labor Standards Act
- Homestead Act
The Answer:
And, the answer for the the question is :
Explanation:
The Sherman Antitrust Act was enacted into law by President Benjamin Harrison in 1890, but it was mostly ineffective and virtually unenforced until Theodore Roosevelt became President. Prior to Roosevelt’s administration, the statute had been signed into law by President Benjamin Harrison. In his role as a ‘trust buster,’ Roosevelt made use of the Sherman Antitrust Act to go after and break up industrial behemoths. The Clayton Antitrust Act was passed in 1914, further strengthening the capacity of the federal government to take action against monopolies.
The Sherman Antitrust Act of 1890 stands as a landmark legislation in the United States aimed at preventing monopolistic business practices. This act, named after its sponsor Senator John Sherman, sought to promote fair competition, protect consumers, and preserve economic opportunities for all. The law emerged during a time of rapid industrialization and the rise of powerful corporations, raising concerns about the concentration of economic power and its potential adverse effects on the economy.
In the late 19th century, the United States underwent significant industrial growth, with industries such as oil, steel, and railroads becoming dominant. As these industries expanded, so did the power and influence of certain corporations, which began to engage in practices that stifled competition and hindered the growth of smaller businesses. This raised concerns among policymakers and the public, leading to calls for legislative action to address the issue.
The Sherman Antitrust Act was enacted on July 2, 1890, with the goal of promoting economic fairness and preventing the formation of monopolies or the restraint of trade. The act declared illegal any contracts, combinations, or conspiracies in restraint of trade or commerce among states or with foreign nations. It targeted business practices that limited competition, such as price-fixing, bid rigging, and the creation of trusts or monopolies.
One of the key provisions of the Sherman Antitrust Act was Section 1, which prohibited contracts, combinations, or conspiracies that restrained trade. This section aimed to prevent agreements between businesses that would lead to anti-competitive behavior or the suppression of market competition. It provided the basis for challenging and dismantling monopolies or any actions that substantially lessened competition.
Another significant provision was Section 2 of the act, which made it illegal to monopolize or attempt to monopolize any part of interstate commerce. This section addressed concerns regarding the concentration of economic power in the hands of a few dominant companies. It sought to preserve competition by preventing the abuse of market dominance and the exclusion of competitors through anti-competitive practices.
The Sherman Antitrust Act marked the first federal attempt to regulate and control business practices to ensure fair competition and protect consumers’ interests. However, its implementation and effectiveness faced challenges. The act’s language was initially vague and left room for interpretation, leading to inconsistent enforcement and legal disputes. Over time, court interpretations and subsequent legislation clarified and expanded the act’s scope and application.
the Sherman Antitrust Act laid the foundation for future antitrust laws and shaped the approach to competition policy in the United States. It established the principle that the government has the authority to intervene in the economy t