Page 55 - Encyclopedia of Business and Finance

eobf_A 7/5/06 2:54 PM Page 32

Antitrust Legislation

Political cartoon depicts the Sherman Antitrust law being resurrected to attack monopolies.

competitors were prohibited from merging in any man- nomic system, they have not been a complete success. A
ner. This amendment extended the FTC’s jurisdiction to sizable number of citizens would like to see these laws
all corporations. This act, however, was not intended to broadened to cover professional baseball teams, labor
stop the merger of two smaller companies or the sale of unions, and professional organizations. Without the
one in a failing condition. Due to court decisions that antitrust legislation that now exists, however, the national
had weakened the Clayton Act, the Celler-Kefauver economy would be worse off in the end.
Antimerger Act was necessary to restrict mergers. SEE ALSO Federal Trade Commission Act of 1914;
Although antitrust laws have contributed enormously Robinson-Patman Act of 1936; Sherman Antitrust Act
to improving the degree of competition in the U.S. eco- of 1890

32 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION