📚 Learning Guide
Sherman Antitrust Act History
easy

What was the primary intent of the Sherman Antitrust Act when it was first enacted?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

To dismantle monopolies and promote competition

B

To regulate labor unions

C

To protect small businesses from larger corporations

D

To establish a federal income tax

Understanding the Answer

Let's break down why this is correct

Answer

The Sherman Antitrust Act was created to stop companies from forming monopolies that could hurt consumers and other businesses. Its main goal was to keep markets competitive by making it illegal for firms to combine in ways that would limit trade or raise prices unfairly. The law says that any agreement or practice that restrains trade or attempts to monopolize is unlawful. For example, the breakup of Standard Oil in 1911 was carried out under this Act to restore competition among oil producers.

Detailed Explanation

The Sherman Antitrust Act was originally drafted to control the power of labor unions, limiting their ability to organize and strike. Other options are incorrect because Many think the Act started to fight monopolies, but the early laws focused on union activities rather than business size; Some believe it protected small companies, but the law was not aimed at business size.

Key Concepts

Sherman Antitrust Act
Labor Unions
Monopolies
Topic

Sherman Antitrust Act History

Difficulty

easy level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.