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                                                                                     Sherman Antitrust Act of 1890


                   Potential problems such as inappropriate posters,  SHERMAN ANTITRUST
                   cartoon clippings, or improper Internet use may be  ACT OF 1890
                   identified through the physical assessments.
                                                                 The Sherman Antitrust Act of 1890, the first and most
                7. Take deliberate, decisive action when the sexual  significant of the U.S. antitrust laws, outlawed trusts and
                   harassment policy is violated and make sure that a  prohibited “illegal” monopolies. The act applies to both
                   solid legal basis for the proposed actions exists.  domestic companies and foreign companies doing busi-
                                                                 ness in the United States. A trust is a relationship between
                SEE ALSO Civil Rights Act of 1964; Diversity in the  businesses that collaborate through anticompetitive agree-
                   Workplace                                     ments to gain market dominance.  Trusts cut prices to
                                                                 drive competitors out of business. Illegal monopolies are
                                                                 those that can be shown to use their power to suppress
                BIBLIOGRAPHY
                                                                 competition. A monopolist has the power to dominate
                Applen, Heather, and Kleiner, Brian H. (2001). An overview of
                                                                 markets—the ability to set the price by altering supply.
                  U.S. Supreme Court decisions in sexual harassment. Manage-
                                                                 Anticompetitive techniques include:
                  rial Law, 43, 17–24.
                Gutek, Barbara A. (2000). Workplace sexual harassment law:  • Buying out competitors
                  Principles, landmark developments, and framework for effec-  • Requiring customers to sign long-term agreements
                  tive risk management. PersonnelPsychology, 53, 745–749.
                                                                  • Compelling customers to buy products they do not
                Hawkins, Dana (2001, August 13). Lawsuits spur rise in
                  employee monitoring. U.S. News and World Report, 131, 53.  want in order to receive other goods
                                                                    The Sherman Antitrust Act, along with the Clayton
                Keyton, Joann, Ferguson, Pat, and Rhodes, Steven C. (2001).
                                                                 Antitrust Act of 1914 and the Federal Trade Commission
                  Cultural indicators of sexual harassment. The Southern Com-
                  munication Journal, 67, 33–50.                 Act of 1914, constitutes a large part of the regulatory
                                                                 umbrella under which U.S. business operates. Through
                Kukec, Anna M. (n.d.). Sexual harassment and bar association
                                                                 the passage of the Sherman Antitrust Act, the U.S. Con-
                  policy: Tightening the gaps is key for management. Retrieved
                                                                 gress provided safeguards to prevent firms from merging
                  November 30, 2005, from the American Bar Association,
                  Division for Bar Services Web site:            with other firms if the effect was to substantially lessen
                  http://www.abanet.org/barserv/22–3sexhar.html  competition and create monopolies.
                Male–on–male sex complaints escalating. (2005, March 1). USA  The Federal  Trade Commission (FTC) and the
                  Today, p. 8.                                   Antitrust Division of the U.S. Department of Justice
                                                                 enforce antitrust laws. The FTC has the power to tem-
                Petrocelli, William, and Repa, Barbara K. (1999). Sexual harass-
                                                                 porarily stop companies from employing suspected anti-
                  ment on the job (4th ed.). Berkeley, CA: Nolo Press.
                                                                 competitive practices, while the Justice Department
                Stier, William F., Jr. (2005). An overview of sexual harassment.
                                                                 probes and prosecutes businesses.
                  Strategies, 18, 13–16.
                                                                    The Sherman Antitrust Act was passed in response to
                Towns, Douglas M., and Johnson, Mark S. (2003). Sexual
                                                                 strong and widespread political pressure to deal with “the
                  harassment in the 21st Century—E-harassment in the work-
                  place. Employee Relations Law Journal, 29, 7.  trust problem” that reached a peak during the presidential
                                                                 election campaign of 1888.  The trusts were corporate
                U.S. Equal Employment Opportunity Commission. (1999).  holding companies that by 1888 had consolidated a very
                  EEOC Notice Number 915.002. Retrieved November 30,
                                                                 large share of U.S. manufacturing and mining industries
                  2005, from http://www.eeoc.gov/policy/docs/harris.html
                                                                 into nationwide monopolies. Some of the most notorious
                U.S. Equal Employment Opportunity Commission. (2002).
                                                                 corporate holding companies were the sugar trust, John
                  Facts about Sexual Harassment. Retrieved November 30,
                                                                 D. Rockefeller’s oil trust, and J. P. Morgan’s steel trust.
                  2005, from http://www.eeoc.gov/facts/fs-sex.html
                                                                 The original legal form of these organizations had been as
                Warfel, William (2005). SEXED: Insulating yourself from sexual
                                                                 business trusts.
                  harassment litigation. Risk Management, 52, 14–19.
                                                                    The Sherman Antitrust Act made trusts and those
                Wyatt, Nancy (2000). Background on sexual harassment.  who violated the act subject to civil remedies and criminal
                  Retrieved November 30, 2005, from              penalties in actions by the Department of Justice and to
                  http://www.de2.psu.edu/harassment/generalinfo/
                                                                 treble damages in private suits. The act was broad, provid-
                  background.html
                                                                 ing few standards, which meant the executive branch and
                                                                 federal courts had to resolve the trust issues. The act was
                                                 Rita Shaw Rone  revised by the Clayton Antitrust Act, which was designed
                                               Clarice P. Brantley  to catch early-stage practices that were thought to lead to
                ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION                                       665
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