SHERMAN ACT Meaning and
Definition
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The Sherman Act is a landmark federal law in the United States that functions as one of the cornerstones of antitrust legislation. Enacted in 1890, it was named after Senator John Sherman, who played a crucial role in its formulation and passage. The Sherman Act seeks to prohibit and limit activities that are deemed to be anti-competitive or that negatively affect trade and commerce within the country.
Its primary purpose is to prevent the formation of monopolies and restrain anticompetitive business practices. The Sherman Act addresses various types of anti-competitive behavior, including agreements or conspiracies to restrict trade, monopolization, and attempts to monopolize.
One of the key aspects of the Sherman Act is its stance against contracts, combinations, or conspiracies in restraint of trade. It prohibits agreements among competitors that limit competition or harm the free market. The act also targets monopolistic practices by prohibiting monopolization or attempts to monopolize trade or commerce.
The Sherman Act grants enforcement powers to the Department of Justice (DOJ) and the Federal Trade Commission (FTC). These agencies have the authority to investigate, sue, and prosecute individuals or companies who violate the provisions of the act. Violators can face significant penalties, including fines and even imprisonment.
Overall, the Sherman Act is a vital piece of legislation in the field of antitrust law. Its aim is to foster fair competition, maintain a level playing field, and protect consumers by preventing anti-competitive practices and the formation of monopolies that could harm the economy.
Common Misspellings for SHERMAN ACT
- aherman act
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Etymology of SHERMAN ACT
The word "Sherman Act" is formed using two elements: "Sherman" and "Act".
1. Sherman: The term "Sherman" in this context refers to the person behind the legislation, Senator John Sherman. John Sherman was a politician from Ohio who served as a U.S. senator from 1861 to 1897. He was the principal author of the Sherman Antitrust Act, which was passed by Congress in 1890.
2. Act: The word "Act" is a common suffix used to denote legislation or laws. It is derived from the Latin word "actus", meaning "a doing" or "a performance". In legal contexts, "act" is often used to signify a specific bill or law passed by a governing body.
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