LAD #24: The Clayton Anti-Trust Act
The Clayton Anti-Trust Act of 1914 was enacted to remedy deficiencies in antitrust law created under the Sherman Antitrust Act of 1890, the first Federal law outlawing practices harmful to consumers (monopolies and anti-competitive agreements). Passed during the Wilson administration, the legislation was introduced by Alabama Democrat Henry De Lamar Clayton. The Clayton Act prohibits: (1)price discrimination between different purchasers if such discrimination substantially lessens competition or tends to create a monopoly in any line of commerce, (2)sales on the condition that (A) the buyer or lessee not deal with the competitors of the seller or lessor("exclusive dealings"), or that the buyer also purchase another different product, but only when these acts substantially lessen competition effect may substantially lessen competition,(3) mergers and acquisitions where the effect may substantially lessen competition,(4)any person from being a director of two or more competing corporations. Section 6 of the Act exempts labor unions and agricultural organizations. Therefore, boycotts, peaceful strikes, and peaceful picketing are not regulated by this statute.