📚 Learning Guide
Sherman Antitrust Act History
hard

The Sherman Antitrust Act, enacted in 1890, was primarily aimed at preventing __________ that interfered with interstate trade.

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Learning Path
Learning Path

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

Choose the Best Answer

A

monopolies

B

labor unions

C

state regulations

D

international trade agreements

Understanding the Answer

Let's break down why this is correct

Answer

The Sherman Antitrust Act was created to stop monopolistic practices that hurt competition in interstate commerce. It made it illegal for companies to collude, fix prices, or use any means to create a monopoly. By breaking up such monopolies, the law kept markets open and fair for consumers and smaller businesses. For example, if a railroad company tried to charge all customers the same high price, the Act would allow the government to intervene and prevent that unfair control. Thus, the Act aimed to protect free trade across state lines.

Detailed Explanation

The Act was written to stop situations where one company becomes so powerful that it can set prices or block other businesses from competing. Other options are incorrect because Some think the Act was mainly for worker groups, but it was not created to fight labor collectives; People sometimes think it was about rules made by each state.

Key Concepts

Antitrust legislation
Economic regulation
Labor relations
Topic

Sherman Antitrust Act History

Difficulty

hard level question

Cognitive Level

understand

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