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Clayton Antitrust Act

From Academic Kids

In the United States, the Clayton Anti-trust Act of 1914 was enacted to remedy perceived deficiencies in antitrust law created under the Sherman Anti-trust Act of 1890. The Clayton Act prohibits:

  • price discrimination between different purchasers if such discrimination substantially lessens competition or tends to create a monopoly in any line of commerce. (Section 2)
  • sales on the condition that the buyer not deal with the seller's competitors. (Section 3)
  • mergers and acquisitions where the effect may substantially lessen competition. (Section 7)
  • any person from being a director of two or more competing corporations. (Section 8)

The Clayton Act empowers private parties injured by violations of the Act to sue for treble damages under Section 4 and injunctive relief under Section 16.

The Clayton Act is enforced by the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice.

Section 6 of the act exempts labor unions and agricultural organizations. Therefore, boycotts, peaceful strikes, and peaceful picketing are not regulated by this statute. Injunctions could be used to settle labor disputes only when property damage was threatened.

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