MANAGEMENT

Detailed explanation-1: -Antitrust laws are the laws that regulate the market and its activities. Such laws aim at reducing unfair trade practices and prevent monopolies. The concept of antitrust laws was for the first time introduced in the USA in 1890 when the Sherman Act was passed.

Detailed explanation-2: -Whereas the Sherman Act only declared monopoly illegal, the Clayton Act defined as illegal certain business practices that are conducive to the formation of monopolies or that result from them.

Detailed explanation-3: -I. Section 2 of the Sherman Act makes it unlawful for any person to “monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations . . . ."

Detailed explanation-4: -The Clayton Act addresses specific practices that the Sherman Act does not clearly prohibit, such as mergers and interlocking directorates (that is, the same person making business decisions for competing companies).

Detailed explanation-5: -An act to protect trade and commerce against unlawful restraints and monopolies.