Antitrust Laws Limit Corporate Aqusition - 4748 Words

Introduction Since the late nineteenth century, the federal government has challenged business practices and mergers that create or may create a monopoly in a particular market. Federal legislation has varied in effectiveness in terms of preventing anti-competitive mergers. Antitrust law is enacted by the federal and various state governments to (1) regulate trade and commerce by preventing unlawful restraints, price-fixing, and monopolies; (2) promote competition; and (3) encourage the production of quality goods and services with the primary goal of safeguarding public welfare by ensuring that consumer demands will be met by the manufacture and sale of goods at reasonable prices. Antitrust law seeks to make enterprises compete†¦show more content†¦ANTITRUST LAWS AND CASES Sherman Anti-Trust Act The Sherman Antitrust Act (15 U.S.C.A.  § 1 et seq.) was the first federal antitrust statute. SEC. 1, 2, and 3, stated that every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce is declared to be illegal; and person who shall monopolize, or attempt to monopolize or combine or conspire with any other person or persons shall be deemed guilty. The Act also entitled to create Federal Trade Commission, and to define its powers and duties. However, its application to mergers and acquisitions has varied, depending on its interpretation by the U.S. Supreme Court. Northern Securities Co. v. United States: Petition under the Sherman Act file March 10, 1902, in the Circuit Court, District of Minnesota, against the Northern Securities Company had acquired and was