The Act That Set Up a Commission to Deal with "Unfair

question 65

Multiple Choice

The act that set up a commission to deal with "unfair methods of competition" was the

• A)Sherman Act.
• B)Wheeler-Lea Act.
• C)Celler-Kefauver Antimerger Act.
• D)Clayton Act.
• E)none of the above

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Definitions:

Celler-Kefauver Act

A U.S. law passed in 1950 aimed at preventing anti-competitive mergers and acquisitions that might reduce competition.

Mergers

The combination of two or more companies into a single entity, typically to increase market share or reduce competition.

Standard Oil Case

A 1911 antitrust case in which Standard Oil was found guilty of violating the Sherman Act by illegally monopolizing the petroleum industry. As a remedy, the company was divided into several competing firms.

U.S. Steel Case

The antitrust action brought by the federal government against the U.S. Steel Corporation in which the courts ruled (in 1920) that only unreasonable restraints of trade were illegal and that size and the possession of monopoly power were not by themselves violations of the antitrust laws.