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 [1914]) was originally enacted to exempt unions from the scope of antitrust laws by refusing to treat human labor as a commodity or an article of commerce.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 ?
Once a plaintiff has established a prima fade showing of a Section 7 Clayton Act violation, the burden of proof shifts to the defendant to rebut the presumption of anticompetitive effects.
Part II examines the antitrust legal theory justifying enforcement, including the Clayton Act's plain language "effects" test.
In the United States, antitrust policy is embodied in the Sherman Act of 1890, the Clayton Act of 1914, and the judicial interpretations of these statutes.
When Congress passed the Clayton Act in 1914, it included a provision (Section 6) that specifically exempted the creation of farmer cooperatives and labor unions and collective activities by farmers and workers from the general operation of the antitrust laws.
Section 16 of the Clayton Act empowers any person threatened with loss or damage by a violation of the Sherman or Clayton Acts to seek injunctive relief in the federal courts.
That wasn't enough, so in 1914, we passed the Clayton Act and the Federal Trade Commission Act.
that the reference in Section 7 of the Clayton Act (14) to lessening competition "in any line of commerce or in any activity affecting commerce in any section of the country"--i.e., the Clayton Act's de facto reference to product and geographic markets--requires at least U.S.
Bazaarvoice, Inc., the DOJ demonstrated the agencies willingness to pursue merger cases under the Clayton Act, regardless of reportability.
The Sherman Act, by its terms, applies only to "trade or commerce." (49) The Clayton Act generally applies to "commerce." (50) Throughout the century-plus span of its history, antitrust jurisprudence has repeatedly recognized that Congress, in so drafting the antitrust laws, intended to cut a wide path.
To give more meaning to the Sherman Act, the Clayton Act was subsequently enacted.
Under the direct purchaser rule, only those who purchase directly from antitrust violators are typically permitted to sue under section 4 of the Clayton Act for treble damages.
Interlocking Directorates and Section 8 of the Clayton Act