What Kind Of Agreement Is Illegal For Businesses To Make Why Are The Antitrust Laws Controversial - Flash by Kristen Weaver

Let`s take a look at the major antitrust laws in the United States. The core of U.S. cartel legislation was created by three statutes: the Sherman Anti-Trust Act of 1890, the Federal Trade Commission Act – which also created the FTC – and the Clayton Antitrust Act. Under the Robinson-Patman Act, it is illegal to charge different prices to different buyers when the items are the same and price discrimination reduces competition. However, it is legal to charge a lower price to a specific buyer if the cost of delivering that buyer is lower or when the seller “meets the competition”. The common law of Restraint of Trade (Common Law of Restraint of Trade) is the direct precursor to modern competition law, which was later developed in the United States. [23] It is based on the prohibition of agreements contrary to public order, unless the relevance of an agreement can be demonstrated. It effectively prohibits agreements that aim to limit the trade of another. Dyer`s of 1414 was the first known trade agreement to be considered under English common law. A dry cleaner had given a loan not to do business in the same city as the complainant for six months, but the plaintiff had not promised anything in return.

When Hull J. heard the complainant`s attempt to impose this deduction, he exclaimed: “If the complainant was there, he should go to jail until he has paid a fine to the king.” The court challenged the recovery of a loan for breach of contract by the dryer because the agreement was considered a commercial restriction. [24] The English courts then ruled on a number of cases that gradually developed competition jurisprudence, which were eventually turned into law. [25] In 1914, Congress passed the Federal Trade Commission Act, which prohibits unfair competition practices and fraudulent practices. In 2020, the Federal Trade Commission (FTC) is a federal authority responsible for enforcing federal cartel law. The Clayton Act was also passed in 1914 and deals with specific practices that the Sherman Act does not prohibit. For example, the Clayton Act prohibits the appointment of the same person to make business decisions for competing companies. Critics have a point. Antitrust laws are uncertain about their enforcement and their enforcement can be costly and costly.