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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

