Clayton Act

(redirected from Clayton Antitrust Act)
Also found in: Financial, Encyclopedia, Wikipedia.

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 [1914]) was originally enacted to exempt unions from the scope of antitrust laws by refusing to treat human labor as a commodity or an article of commerce.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 ?
section][section] 8-11; Clayton Antitrust Act [includes the
The limitations period the court decided on was the four-year limitations period from the Clayton Antitrust Act.
Section 7 of the Clayton Antitrust Act makes it illegal for one business to acquire, directly or indirectly, the stock of another business, where the effect of the acquisition may be to substantially lessen competition or tend to create a monopoly.
A US District Court has decided to block the merger between UPM-Kymmene's Raflatac and Bemis Company's MACtac, citing a violation of the Clayton Antitrust Act.
In retrospect, the Orlando case seems to be the last gasp of Justice Department enforcement of the Clayton Antitrust Act in the area of newspaper monopoly.
Minnesota's attorney general had filed suit against the proposed merger of Health One and LifeSpan, arguing that the postmerger market share resulting from the proposed merger was unacceptably high and that the proposed merger violated Section One of the Sherman Antitrust Act and Section Seven of the Clayton Antitrust Act.
He pushed through the Clayton Antitrust Act and took on companies like International Harvester and American Sugar.
Under the Clayton Antitrust Act of 1914, directors are forbidden from sitting on the board of two companies where that would reduce competition.
The Federal Reserve Act of 1913 and the Clayton Antitrust Act of 1914 establish the Federal Reserve Board and the Federal Trade Commission, respectively.
By 1915, when the Supreme Court invoked the new Clayton Antitrust Act to dismantle the Trust, competition from these outlaw companies had already rendered it a dead letter, and the motion picture industry had been permanently chased out of New Jersey.