Wednesday, February 1, 2012

LAD #27 The Clayton Anti-Trust Act


Summary of the Clayton Anti-Trust Act, 1914:

The act outlaws price or service discrimination in commerce that tends to lessen competition or create a monopoly. The Federal Trade Commission is permitted to issue an order to terminate the discrimination. Also, any person who is found to be granting discriminating rebates in order to eliminate competition can be charged up to $5,000 in fines or could be imprisoned for up to a year. Furthermore, a worker injured by a violation of the terms in the Act is permitted to sue his company, with three-fold the price of the damages plus the cost for the suit and a reasonable attorney. The United States is also allowed to sue a violating company in similar circumstances.

It also establishes that the labor of a human being is not a commodity or article of commerce, and thus that nothing in the Act should be used against the existence of labor and agricultural unions.

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