Clayton Act


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Clayton Act

A federal law enacted in 1914 as an amendment to the Sherman Anti-Trust Act (15 U.S.C.A. § 1 et seq. [1890]), prohibiting undue restriction of trade and commerce by designated methods.The Clayton Act (15 U.S.C.A. § 12 et seq. [1914]) was originally enacted to exempt unions from the scope of antitrust laws by refusing to treat human labor as a commodity or an article of commerce. Today, it is used primarily to prohibit the suppression of free competition by making illegal four business practices: price discrimination, which is the sale of the same product to comparably situated buyers at different prices; tying and exclusive dealing contracts, which are the sale of products on condition that the buyer stop dealing with the seller's competitors; corporate mergers, the acquisition of competing companies by one company; and interlocking directorates, the members of which are common members on the boards of directors of competing companies.

These practices are illegal when they might substantially lessen competition or tend to create a Monopoly in any line of commerce. By making the suppression of free competition unlawful the Clayton Act supplements the provisions of the Sherman Act, which outlaws monopolies.

Clayton Act

a US statute that prohibited certain practices like price discrimination and exclusive dealing where goods are sold for use, consumption or resale in the USA. Mergers are restricted under the Act. It has been developed over the years and provides a robust competition law.
References in periodicals archive ?
Congress established the Clayton Act as a civil remedy for antitrust violations, empowering private individuals harmed by these violations to sue for damages.
The court first examined the legislative history's treatment of the relationship between RICO and the Clayton Act.
Section 6 of the Clayton Act was the first legislative recognition of the unique needs of farmers and their cooperatives.
35) The 1996 Telecommunications Act amended section 7 of the Clayton Act to reaffirm that telecommunications mergers fall within the scope of the DOJ's enforcement authority.
I don't believe that the Clayton Act has been implemented in accordance with the desires of the Congress at that time, but the TNEC actually was a relatively productive force in helping the country move into its next stage of capitalism, a stage that emphasized free markets and intervention to keep markets operating in the public interest.
Next, the court analyzed Poliner's antitrust claims under Section 1 and 2 of the Sherman Act, Section 4 of the Clayton Act, and the Texas Free Enterprise and Anti-Trust Act of 11983.
The plaintiffs sought damages under Section 4 of the Clayton Anti Trust Act as well as injunctive relief under Section 16 of the Clayton Act.
However, when Congress adopted section 3 of the Clayton Act prohibiting the leveraging of sales through a tie where the "effect .
The commission's staff conducted an investigation to determine whether the deal would be anticompetitive in violation of Clayton Act or FTC Act.
Since the Sherman Act (1890) and Clayton Act (1910), six commissions have been convened to review the state of anti-trust legislation and recommend changes consistent with the contemporary economy.
34) In addition, Section 2 of the Clayton Act prohibits price discrimination between different purchasers of a product in a domestic context.