Moneyzine
Contents
/Careers Guides/Clayton Antitrust Act of 1914

Clayton Antitrust Act of 1914

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
September 26th, 2023
Advertiser Disclosure

Definition

The Clayton Antitrust Act of 1914 was enacted to strengthen existing anti-trust laws and further limit business practices thought to be anticompetitive. Named after its principle author, Henry De Lamar Clayton Jr., the act would attempt to close some of the loopholes businesses found in the years following the Sherman Act of 1890 as well as curtail monopolistic activity.

Explanation

The Sherman Antitrust Act of 1890, along with the Clayton Act of 1914 and the Federal Trade Commission Act of 1914, were groundbreaking statutes geared towards limiting monopolies and cartels. In the years following the Sherman Act, courts applied the law to trade unions, which found it impossible to organize so they could bargain with their employers. There were also a number of mergers, which reestablished the market power of the cartels outlawed by the Sherman Act.

Adding further strength to the Sherman Act, the Clayton Antitrust Act of 1914 would specifically outlaw the following conduct:

  • Price Discrimination: a strategy where similar or identical merchandise or services are sold by the same producer for different prices in different markets or geographies.

  • Tying Arrangements / Exclusive Dealing: arrangements whereby one party is only willing to do business with another party if they agree to deal with them exclusively, or they agree to purchase a large share of their total requirements from the first party.

  • Mergers and Acquisitions: applies to those transactions that would substantially lessen competition. Provides the Federal Trade Commission and Department of Justice with the authority to regulate mergers and acquisitions.

  • Board of Directors: persons were prohibited from being a director of two or more corporations that could be considered competitors.

Related Terms

Related Content

7 Essential Financial Moves After Losing Your Job
Navigating the stormy seas of job loss? You're not alone.
February 23rd, 2024
The Most In-Demand Skills to Get Hired in 2024
Every job requires a combination of vital skills, but what skillset is valued most in 2024? As the job market evolves, staying ahead means it’s key to understand and acquire the skills that employers value most.
February 20th, 2024
Key Productivity in the Workplace Statistics for 2024
In 2023, global employee engagement saw a slight uptick, with 23% of employees engaged, up by two percentage points. However, a sizable 59% are categorized as disengaged, while actively disengaged employees, known as "loud quitting," declined to 18%. These figures highlight the persistent challenge for organizations to cultivate happiness and productivity in the workplace.
January 31st, 2024
December 6th, 2023
Here’s a whopping list of 250+ sales statistics across 25 different categories. We’ve scoured numerous rabbit holes on the internet, scanned reports, and examined credible studies, to compile the most comprehensive list of sales statistics. We raked through the most trusted sources, like The Harvard Business Review, The Pew Research Center, HubSpot, and more, so you don’t have to.
December 1st, 2023

Contributors

Moneyzine 2024. All Rights Reserved.