Understanding the Clayton Act

What was the primary purpose of the Clayton Act when it was enacted in 1914?

• To regulate interstate commerce

• To address issues not covered by the Sherman Antitrust Act

• To establish the Federal Reserve System

• To impose federal income taxes

Which of the following is a provision of the Clayton Act?

• Prohibition of monopolies

• Regulation of bank mergers

• Prohibition of discriminatory pricing that lessens competition

• Establishment of the Federal Trade Commission

How does the Clayton Act enforce its provisions against anticompetitive practices?

• By allowing private parties to sue for triple damages

• By issuing executive orders

• Through mandatory arbitration

• By direct intervention of the President

Which agency is primarily responsible for enforcing the Clayton Act?

• The Department of Justice

• The Federal Reserve

• The Federal Trade Commission

• Both A and C

The Clayton Act was designed to supplement which other antitrust law?

• The Federal Trade Commission Act

• The Dodd-Frank Act

• The Sherman Antitrust Act

• The Sarbanes-Oxley Act

Which section of the Clayton Act addresses the issue of price discrimination?

• Section 1

• Section 2

• Section 7

• Section 11

What does the Clayton Act say about mergers and acquisitions?

• They are always prohibited

• They are permitted if they do not substantially lessen competition

• They require approval from the Federal Reserve

• They are encouraged to promote economic growth

Which of the following practices is prohibited by the Clayton Act to protect trade and commerce against unlawful restraints?

• Outsourcing

• Exclusive dealing contracts

• Advertising

• E-commerce

How did the Clayton Act address the issue of interlocking directorates?

• By allowing them in all industries

• By prohibiting them in competing companies

• By requiring government approval for them

• By imposing taxes on companies with interlocking directorates

What is the significance of the term "antitrust" in the context of the Clayton Act?

• It refers to trust in the government's economic policies

• It signifies laws against trade restrictions and monopolies

• It denotes trust between competing businesses

• It represents the trust in banking systems