Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Breaking up the Northern Securities railroad trust
B
Allowing large corporations to merge without oversight
C
Challenging Standard Oil's market dominance
D
Enabling the creation of monopolies in the technology sector
E
Prosecuting companies for price-fixing agreements
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Act targets conduct that harms competition, such as when a firm colludes with rivals to fix prices or shares markets, which is illegal and can lead to court orders or fines. It also prohibits a single company from monopolizing an industry by using unfair tactics—like buying out competitors or controlling essential resources—to eliminate rivals. Another example is a merger that would substantially lessen competition, which regulators can block or require divestitures. Finally, tying arrangements, where a firm forces customers to buy an unrelated product to obtain a desired one, are also scrutinized under the Act. These actions show how the Sherman Act is applied to prevent monopolistic behavior.
Detailed Explanation
The Act was used to break up the Northern Securities railroad trust, stop Standard Oil from controlling the market, and punish companies that set prices together. Other options are incorrect because The law does not let big firms merge freely; it checks them; The law is meant to stop monopolies, not help them.
Key Concepts
Sherman Antitrust Act
Monopolies and Trusts
Interstate Commerce
Topic
Sherman Antitrust Act Application
Difficulty
hard level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1Sherman Antitrust Act : Monopoly :: Clayton Antitrust Act : ?
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Practice
2
Question 2Which of the following statements accurately reflect the principles and goals of the Sherman Antitrust Act? Select all that apply.
easyHistory
Practice
3
Question 3Monopoly:Market Control :: Sherman Antitrust Act: ?
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Practice
4
Question 4Which of the following scenarios best exemplifies a violation of the Sherman Antitrust Act?
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Practice
5
Question 5Which of the following actions are typically considered as enforcement measures under the Sherman Antitrust Act? (Select all that apply)
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Practice
6
Question 6Which of the following scenarios best exemplifies the application of the Sherman Antitrust Act in its historical context?
mediumHistory
Practice
7
Question 7What is the correct sequence of events in the application of the Sherman Antitrust Act starting from the identification of a monopoly to its regulation?
mediumHistory
Practice
8
Question 8Which of the following cases best exemplifies the application of the Sherman Antitrust Act in the context of regulating monopolies, and why?
mediumHistory
Practice
9
Question 9The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
easyHistory
Practice
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