📚 Learning Guide
Sherman Antitrust Act History
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What was a significant underlying cause for the initial enforcement of the Sherman Antitrust Act against labor unions instead of corporations?

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Choose the Best Answer

A

To curb the growing power of labor movements that were seen as a threat to economic stability

B

To promote the interests of large corporations over small businesses

C

To ensure that monopolies in the agricultural sector were dismantled

D

To establish a precedent for government intervention in free markets

Understanding the Answer

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Answer

The courts and the government at the time saw labor unions as “unreasonable restraints of trade” just like monopolistic corporations, so they used the Sherman Act to curb union power. Politicians wanted to protect business interests and maintain economic stability, and they believed that strong unions threatened that stability. Because unions were viewed as monopolistic in their control of labor markets, the Sherman Act was applied first to them rather than to corporations. For example, in 1902 the government prosecuted a railroad strike by a major union under the Sherman Act, treating the union’s collective bargaining as a restraint of trade. This early use of the law reflected the prevailing fear that organized labor could dominate the economy as much as a single corporation could.

Detailed Explanation

At the time the law was written, business owners worried that large unions could stop work, raise wages, and cause big economic shifts. Other options are incorrect because Some think the law was made to favor big businesses; It is easy to assume the Act was aimed only at agricultural monopolies.

Key Concepts

Sherman Antitrust Act
Labor Unions
Economic Regulation
Topic

Sherman Antitrust Act History

Difficulty

medium level question

Cognitive Level

understand

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