Egt1 Task 3

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Egt1 Task 3 A. The four major federal legislative pieces of Anti-trust laws are the Federal Trade Commission Act, The Clayton Act, The Sherman Act and the Celler-Kefauver Act. The Sherman Act was passed in 1890 to outlaw monopolies and stop companies from conspiring together to cause trade restraint. The act established that violaters could be fined or imprisoned as well as sued by parties injured by their unlawful actions. It also established that monopolies could be broken up forcibly. The Clayton Act was passed in 1914. The Clayton act was passed in part because the Sherman Act had too many loopholes due to non-specific language. It forbid tying contracts, having board members that were considered interlocking and prohibited mergers between companies that would cause competition to suffer. The Federal Trade Commission Act created the Federal Trade Commission to enforce the current laws and most specifically the Clayton Act. The FTC has the power to order a cease and desist against a corporation deemed to be participating in unfair practices. The Celler-Kefauver act was passed in 1950 to prohibit companies from acquiring physical assets versus actual stock of a company that would cause reduced competition. It was essentially used to close a loophole in the Clayton Act that was allowing businesses to use asset acquisition as a means to get around the Clayton Act. B. An Oligopoly Market is defined as a market with very few producers, usually large, or one type of product. They set their own prices. Their are many blocks to entering this type of market. A market is considered an oligopoly when a few large companies control a large segment of the market. A Pure Monopolistic Market or Pure Monopoly occurs when there is only one company that creates a product or good and there are no substitutions available. Industrial Regulation are intended to curb the

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