📚 Learning Guide
Sherman Antitrust Act Application
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Which of the following cases best exemplifies the application of the Sherman Antitrust Act in the context of regulating monopolies, and why?

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Learning Path

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Choose the Best Answer

A

The breakup of the Northern Securities Company

B

The establishment of the Federal Reserve

C

The creation of the Interstate Commerce Commission

D

The merger of two large tech companies

Understanding the Answer

Let's break down why this is correct

Answer

The classic example is United States v. Standard Oil, decided in 1911, because it was the first major case where the Sherman Antitrust Act was used to break up a monopoly. In that case, Standard Oil controlled almost all U. S. oil refining, used predatory pricing and exclusive contracts to push competitors out, and then raised prices once it had eliminated rivals.

Detailed Explanation

The Northern Securities breakup was a direct use of the Sherman Act. Other options are incorrect because A common mistake is thinking the Federal Reserve is an antitrust case; Many think creating a regulatory body is the same as using the Sherman Act.

Key Concepts

Sherman Antitrust Act
Monopoly Regulation
Interstate Commerce
Topic

Sherman Antitrust Act Application

Difficulty

medium level question

Cognitive Level

understand

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