RAT Chapter 12 Flashcards
Which answer best describes the first major Federal law to regulate non-railroad business?
The Sherman Antitrust Act.
Which answer best describes the “radical approach” to interpreting the Sherman Antitrust Act adopted by the US Supreme Court in 1897, which was soon overturned by the Court’s adoption of the “rule of reason?”
That the Sherman Antitrust Act applied to all contracts because all contracts are in restraint of trade.
Which answer best describes who appoints the commissioners of the Federal Trade Commission?
The President of the United States
Which answer best describes one of the purposes of antitrust laws
To promote competition
Which answer best what three things, done in restraint of trade, that are illegal under the Sherman Antitrust Act?
Contracts, combinations, and conspiracies.
Which answer best describes whether criminal penalties can be assessed for antitrust violations under the Clayton Act or the Federal Trade Commission Act?
Only fines and damages are permitted because these Acts are civil statutes.
Which answer best describes US Supreme Court’s definition of monopoly power?
It is the power to control prices or exclude competition.
Which answer best describes an application of antitrust law that makes it illegal for a supplier to sell to chain stores at prices lower than they would sell to small businesses?
It violates the prohibition against price discrimination under the Clayton Act as amended by the Robinson-Patman amendment in 1936.
Which answer best describes the 1887 antitrust law that created the first administrative agency for regulating business?
The Interstate Commerce Act.
Which answer best describes the industry that spurred the first efforts at government regulation, and transformed tort law, employment law, labor law, American business enterprise and American government?
Railroads.
