The Sherman Anti Trust Act Of 1890 Essay - 1278 Words

Abbi Green Period 5 2016 Nov. 16 Anti-Trust The Sherman Anti-Trust Act of 1890 was passed to prohibit trusts, this was the first law passed by U.S. Congress to enforce this. This act was named after Senator John Sherman. Before this act was put into place, many other states had enforced laws very similar to the Sherman Anti-Trust Act. These laws were not perfect though, the large corporations had the majority of the economic power. Congress was not pleased with this, thus making the Sherman Anti-Trust Act. This act allowed Congress to regulate interstate commerce, outlawing monopolistic practices. If a person were to violate this act, he or she could be imprisoned for a year and fined five-thousand dollars. This law was successfully used to help Theodore Roosevelt during his campaign, â€Å"trust-busting†. Also, President Taft used the law to back himself up against the Standard Oil Trust and American Tobacco Company. The Standard Oil trust was when a board of nine trustees was set up to make all of the company dec isions , allowing the company to run as a monopoly. The Sherman Anti-Trust Act allowed both presidents to dissolve the trusts that were creating problems. On the other hand, the Sherman Anti-Trust Act had many holes, it did not have exact wording, therefore allowing companies to still control the majority of the producing and still get away with it. The Sherman Anti-Trust Act had substantial success, but was put to rest and replaced with the Clayton Anti-TrustShow MoreRelatedAnalysis Of The Sherman Anti Trust Act Of 18901682 Words   |  7 Pagesprices of their products. This is classified as a horizontal agreement because it involves competitors. They do this in order to manipulate prices to gain an unfair advantage. The government has a law in place for this issue called the Sherman Anti-Trust Act of 1890. This law requires each company to set its prices and other terms on its own. Generally, the consumer expects the price of a product to be determined by the current supply and demand. This is not the case with price fixing, as competitorsRead MoreA Comparison of Two Monopolists in a Competitive Market Essay977 Words   |  4 Pagesprices clearly illustrate the inefficiency of a monopoly and the harm it may cause to the economy. The Sherman Anti-Trust Act of 1890 In order to prevent a handful of monopolies and trusts (another form of monopolization) from controlling the economy, Congress passed the Sherman Anti-Trust Act of 1890. Signed into law by President Benjamin Harrison on July 2, 1890, the law consists of two sections. Section 1 primarily prohibits any contract or action whose aim is an Read MoreThe Progressive Era ( 1900-1919 )1544 Words   |  7 Pagesin the Gilded Age (1877-1900). One of the best examples of this was shown in the correlation between the Clayton Anti-Trust Act and Sherman Anti-Trust Act. The Sherman Anti-Trust Act was established in 1890, with the purpose of combatting oppressive monopolies and big businesses. The federal law prohibited the signing of any trust, lease, or contact in the limits of foreign trade. The act also states that. â€Å"Every person who shall monopolize, or attempt to monopolize, or combine or conspire with anyRead MoreThe Federal Trade Commission Act931 Words   |  4 PagesIn 1890, the United States Congress passed the first Anti-Trust Law, called the Sherman Act, in an attempt to combat anti trusts and as a â€Å"comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.† (The Antitrust Laws). Twenty four years later in 1914, Congress passed two more Anti -Trust Laws: the Federal Trade Commission Act, which created the Federal Trade Commission whose aim is to protect American consumers, and the Clayton act, whichRead MoreThe Sherman Act Of 18901512 Words   |  7 PagesA Sherman Act of 1890 The Sherman Act of 1890 as referenced in McConnell and Campbell (2011), consists of two main regulations; †¢ Section 1 â€Å"Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared to be illegal.† †¢ Section 2 â€Å"Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the trade orRead MoreAre United States Business Laws Effective at Promoting Fair Business Practices762 Words   |  4 Pagesmultitude of industries and professions. In order to preserve the trust and integrity of our financial systems, it is imperative that the United States implement, regulate, and enforce business practices to remain relevant and effective within the constantly changing global economic marketplace. The United States has a long history of ensuring fair and balanced business practices through legislation. The Interstate Commerce Act of 1887, began a shift in the economy from state commerce regulationRead MoreEssay about Sherman Anti-Trust Act (Constitutional Law)792 Words   |  4 PagesTo: Reader From: Re: Sherman Antitrust Act Facts John Davison Rockefeller was the founder of Standard Oil Company in 1870 and ran it until he retired in 1897. Standard Oil gained almost complete control over the oil refining market in the United States by underselling its competitors. Rockefeller and his associates owned dozens of corporations operating in just one state. The Sherman Antitrust Act was enacted on July 2nd, 1890 which prohibits activities that restrict interstate commerceRead MoreGovernment Interventions : An Economic Intervention1590 Words   |  7 Pagesregulations obtain to promote objectives that are not economic, such as safe workplaces and a cleaner environment. My Government Interventions are the First Income tax, The Interstate Commerce Act, and The Sherman Antitrust Act. I will evaluate these interventions by describing what it was, what the purpose of the act was, the primary and secondary costs and benefits of the intervention, and if the intervention was economically efficient. A law enacted by the government to help control prices is calledRead MoreThe Copyright Of The Sherman Antitrust Act1662 Words   |  7 Pagesdealing with trusts and monopolies, controversy is sure to arise. This discussion is a result of the benefits, and also the disadvantages of monopolies in our market. With these arguments going on, discussions of the Sherman Antitrust Act in many legal cases, have been whether or not this law is beneficial to our economy and population, or harmful. People have gathered on both sides of this debate looking for the truth behind the effect of the Sherman Antitrust act. To learn how the Sherman AntitrustRead MoreThe Effects Of Monopolies On The Economy Essay1558 Words   |  7 PagesNov. 2015.(page 1) In the year 1890 the Sherman Anti-Trust Act was signed into law by congress. It was named after John Sherman of an Ohio senator that took lots of notice in the economies growth of businesses. Anti-Trust Act was designed to prevent cartels and monopolies from becoming too powerful. The act states Every contract in the form of trust, or conspiracy, in trade or commerce among the several States with foreign nations, is declared to be illegal. The Act also says: Every person who shall