Which act is designed to prevent exclusive arrangements that lessen competition?

Which act is designed to prevent exclusive arrangements that lessen competition?

• A. Robinson-Patman Act
• B. Clayton Anti-Trust Act
• C. Sherman Anti-Trust Act
• D. Federal Trade Commission Act

Answer: (B)

The Clayton Anti-Trust Act is specifically designed to address and prevent anti-competitive practices that may arise from exclusive arrangements between firms. It builds on the foundation laid by the Sherman Anti-Trust Act, which broadly outlawed monopolistic practices. The Clayton Act goes a step further by prohibiting specific actions that could lead to reduced competition, such as mergers and acquisitions that may significantly lessen competition or create a monopoly, and certain types of exclusive deals between companies that could unfairly limit market access for competitors. This act is particularly significant because it allows for the prohibition of practices that are not outright illegal under the Sherman Act but could still harm competition, thereby maintaining healthier market dynamics. Its primary goal is to ensure a fair and competitive marketplace, protecting both consumers and businesses from the negative effects of exclusive arrangements that might restrict competition.

The Clayton Anti-Trust Act is specifically designed to address and prevent anti-competitive practices that may arise from exclusive arrangements between firms. It builds on the foundation laid by the Sherman Anti-Trust Act, which broadly outlawed monopolistic practices. The Clayton Act goes a step further by prohibiting specific actions that could lead to reduced competition, such as mergers and acquisitions that may significantly lessen competition or create a monopoly, and certain types of exclusive deals between companies that could unfairly limit market access for competitors.

This act is particularly significant because it allows for the prohibition of practices that are not outright illegal under the Sherman Act but could still harm competition, thereby maintaining healthier market dynamics. Its primary goal is to ensure a fair and competitive marketplace, protecting both consumers and businesses from the negative effects of exclusive arrangements that might restrict competition.