📚 Learning Guide
Sherman Antitrust Act History
easy

What was a key initial focus of the Sherman Antitrust Act when it was enacted in 1890?

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Learning Path

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Choose the Best Answer

A

Regulating monopolies in big business

B

Limiting the power of labor unions

C

Promoting fair trade practices

D

Increasing government intervention in the economy

Understanding the Answer

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Answer

The Sherman Antitrust Act was first aimed at breaking up monopolies and stopping companies from using unfair tactics to control markets. It made it illegal for businesses to agree on prices, divide markets, or otherwise restrain trade in ways that hurt competition. By targeting these anti‑competitive agreements, the law sought to keep markets open and fair for consumers and smaller firms. For example, if a railroad company tried to fix freight rates, the Act would allow it to be challenged and potentially shut down. This focus on restraining trade helped lay the groundwork for modern competition law.

Detailed Explanation

At first, the Act was used to stop labor unions from striking or organizing. Other options are incorrect because Many think the law began against large firms; Some think it was about promoting fair trade.

Key Concepts

Antitrust Legislation
Labor Relations
Economic Policy
Topic

Sherman Antitrust Act History

Difficulty

easy level question

Cognitive Level

understand

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