Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It allowed the government to break up monopolies for public benefit.
B
It protected monopolies from government interference.
C
It promoted the formation of more trusts.
D
It had no significant effect on business practices.
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act made it illegal for companies to form monopolies that restrained trade, giving the federal government the power to sue and break them up. In the early 1900s the U. S. government used the Act against Northern Securities, a railroad trust that controlled several major rail lines in the Midwest. Federal courts found that the trust had illegally restrained competition and ordered the company to be dissolved.
Detailed Explanation
The law lets the government step in when a company controls too much of the market, like a referee stopping a fight. Other options are incorrect because People sometimes think the act protects big companies, but it actually does the opposite; Some believe the law encourages trusts, but it was made to curb them.
Key Concepts
Antitrust regulation
Monopolies and trusts
Federal government intervention
Topic
Sherman Antitrust Act Application
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1What was the primary cause behind the application of the Sherman Antitrust Act against the Northern Securities railroad trust in 1904?
easyHistory
Practice
2
Question 2Which of the following cases best exemplifies the application of the Sherman Antitrust Act in the context of regulating monopolies, and why?
mediumHistory
Practice
3
Question 3Sherman Antitrust Act Application : Northern Securities Trust :: Clayton Antitrust Act : ?
mediumHistory
Practice
4
Question 4Which of the following actions exemplify the application of the Sherman Antitrust Act in regulating monopolies? Select all that apply.
hardHistory
Practice
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