Question

The Clayton Act: A. Amends the Sherman Act. B. Replaces the Sherman Act. C. Repeals the Sherman Act. D. Rescinds the Sherman Act.

Answer 1

Answer: A. Amends the Sherman Act.

Explanation: The Clayton Act amends the Sherman Act. The Sherman Anti-Trust Act was approved in July 2, 1890 and is known to be the first Federal act that outlawed monopolistic business practices, cartels and trusts, which are practices that are considered harmful to consumers. The Clayton Act came on later in 1914, and specified particular prohibited conduct, the three-level enforcement scheme, the exemptions, and the remedial measures. In summary, the act prohibits anticompetitive mergers, predatory and discriminatory pricing, other forms of unethical corporate behavior and was intended to strengthen earlier antitrust legislation (The Sherman Act).