The Sherman Antitrust Act

The Sherman Antitrust Act (Sherman Act[1], July 2, 1890, ch. 647, 26 Stat. 209, 15 U.S.C. § 1–7), was the first United States government statute to limit cartels and monopolies. It is the first and oldest of all U.S., federal, antitrust laws.

The Act provides: "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal".[2] The Act also provides: "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony [. . . ]"[3] The Act put responsibility upon government attorneys and district courts to pursue and investigate trusts, companies and organizations suspected of violating the Act. The Clayton Act (1914) extended the right to sue under the antitrust laws to "any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws."[4]. Under the Clayton Act, private parties may sue in U.S. district court and should they prevail, they may be awarded treble damages and the cost of suit, including reasonable attorney's fees. [5]

Contents

•1 History

•2 The Purpose of the Act

•3 The Legal Effects of the Act

•4 Criticism of the Sherman Antitrust Act

•5 See also

•6 Notes

•7 External links

◦7.1 Official websites

◦7.2 Additional information

[edit] History

The Sherman Act was signed by President Benjamin Harrison in 1890 and was named after its author, Senator John Sherman, an Ohio Republican, chairman of the Senate Finance Committee, the Secretary of Treasury under President Rutherford Hayes, and Secretary of State under President William McKinley. After passing in the Senate on April 8, 1890 by a vote of 51-1, the legislation passed unanimously (242-0) in the House of Representatives on June 20, 1890.

[edit] The Purpose of the Act

Despite its name, the Act has fairly little to do with "trusts". Around the world, what U.S. lawmakers and attorneys call "Antitrust" is more commonly known as "competition law." The purpose of the act was to oppose the combination of entities that could potentially harm competition, such as monopolies or cartels. Its reference to trusts today is anachronism.