USA HISTORY

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WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900

AMERICAN INDUSTRY DEVELOPMENT IN THE GILDED AGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Congressional action taken in 1890, during the Gilded Age, that made “contracts, conspiracies, and combinations” that restrained free trade illegal. This was done to stop the abusive practices of organized trusts in oil, sugar, tobacco ____ had an adverse effect as it targeted unions instead, and was not enforced.
A
Sherman Antitrust Act
B
Celler-Kefauver Act
C
Clayton Antitrust Act
D
Interstate Commerce Act
Explanation: 

Detailed explanation-1: -The Sherman Anti-Trust Act authorized the federal government to institute proceedings against trusts in order to dissolve them. Any combination “in the form of trust or otherwise that was in restraint of trade or commerce among the several states, or with foreign nations” was declared illegal.

Detailed explanation-2: -For more than a decade after its passage, the Sherman Antitrust Act was invoked only rarely against industrial monopolies, and then not successfully. Ironically, its only effective use for a number of years was against labor unions, which were held by the courts to be illegal combinations.

Detailed explanation-3: -The Sherman Antitrust Act refers to a landmark U.S. law that banned businesses from colluding or merging to form a monopoly. Passed in 1890, the law prevented these groups from dictating, controlling, and manipulating prices in a particular market.

Detailed explanation-4: -What is the purpose of the Sherman Antitrust Act? The Sherman Antitrust Act was enacted in 1890 to curtail combinations of power that interfere with trade and reduce economic competition. It outlaws both formal cartels and attempts to monopolize any part of commerce in the United States.

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