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Answer
The Sherman Antitrust Act was indeed created to stop monopolistic practices, and it was first applied to big corporations such as Standard Oil. However, it was also used against labor unions during the early 1900s, when the federal government sued the American Federation of Labor for conspiracy under the Act. The courts treated unions as “conspiracies” that could restrain trade, so the Act’s reach was not limited to corporations alone. This shows that the law’s initial enforcement was broader than the statement suggests. In short, while the Act targeted monopolies, it also targeted unions from the start.
Detailed Explanation
The Sherman Antitrust Act of 1890 was intended to stop monopolistic practices, but the first cases used it against labor unions. Other options are incorrect because The idea that the Act was never used against unions is a misunderstanding.
Key Concepts
Antitrust legislation
Labor relations
Economic policy history
Topic
Sherman Antitrust Act History
Difficulty
hard level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1The Sherman Antitrust Act was primarily designed to prevent the formation of __________ that could restrict competition in the marketplace.
easyHistory
Practice
2
Question 2What was the primary goal of the Sherman Antitrust Act?
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3
Question 3The Sherman Antitrust Act was primarily enacted to prevent __________ and promote fair competition in the marketplace.
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Practice
4
Question 4What was a significant underlying cause for the initial enforcement of the Sherman Antitrust Act against labor unions instead of corporations?
mediumHistory
Practice
5
Question 5Arrange the following events in the correct chronological order regarding the enforcement of the Sherman Antitrust Act: A) The Act is used against labor unions, B) The Act is enacted by Congress, C) The political focus shifts towards regulating large corporations, D) The Act is passed with overwhelming support in Congress.
mediumHistory
Practice
6
Question 6The Sherman Antitrust Act, enacted in 1890, was primarily aimed at preventing __________ that interfered with interstate trade.
hardHistory
Practice
7
Question 7The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
easyHistory
Practice
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