Violating The Sherman Anti Trust Act - 1964 Words

to compete, so it opted to try to form a monopolistic trust in order to eliminate the competition. But to determine if Microsoft was attempting to violate the Sherman Anti-Trust Act, a trust must be defined. By definition, a trust is a combination of firms formed by legal agreement. While it may not be obvious to the average consumer, Microsoft, by trying to negotiate an agreement between the two businesses so it could have a better grip on web browsing, hints at wanting to form a trust between the two. Not many people had non-Windows systems so Microsoft would have the Netscape browser be offered to the minority of customers while making itself available to the masses. Microsoft would not directly gain money from Netscape, but its losing potential customers meant that Microsoft would gain more money indirectly. The Sherman Anti-Trust is not explicit in its terms and it is not clear whether a trust is illegal or preventing competition is. In Section one of the act, it says that a trust has to also be â€Å"in restraint of trade or commerce among the several states, or with foreign nations† to fully be declared illegal. Even in section two of the act, it states,† Every person who shall 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, shall be deemed guilty of a felony† (Cornell). The lines â€Å"among the several states† can be used as aShow MoreRelatedEssay about Sherman Anti-Trust Act (Constitutional Law)792 Words   |  4 PagesTo: Reader From: Re: Sherman Antitrust Act Facts John Davison Rockefeller was the founder of Standard Oil Company in 1870 and ran it until he retired in 1897. Standard Oil gained almost complete control over the oil refining market in the United States by underselling its competitors. Rockefeller and his associates owned dozens of corporations operating in just one state. The Sherman Antitrust Act was enacted on July 2nd, 1890 which prohibits activities that restrict interstate commerceRead MoreThe Federal Trade Commission Act931 Words   |  4 Pagesfirst Anti-Trust Law, called the Sherman Act, in an attempt to combat anti trusts and as a â€Å"comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.† (The Antitrust Laws). Twenty four years later in 1914, Congress passed two more Anti-Trust Laws: the Federal Trade Commission Act, which created the Federal Trade Commission whose aim is to protect American consumers, and the Clayton act, which fills in any loopholes in the Sherman Act. UltimatelyRead MoreA Comparison of Two Monopolists in a Competitive Market Essay977 Words   |  4 Pagesconsumers. Less production and higher prices clearly illustrate the inefficiency of a monopoly and the harm it may cause to the economy. The Sherman Anti-Trust Act of 1890 In order to prevent a handful of monopolies and trusts (another form of monopolization) from controlling the economy, Congress passed the Sherman Anti-Trust Act of 1890. Signed into law by President Benjamin Harrison on July 2, 1890, the law consists of two sections. Section 1 primarily prohibits anyRead MoreFtc : The Federal Trade Commission2119 Words   |  9 Pagesftc.gov, 2014). Discussion Events that led to the creation of the FTC. July 2, 1890, the Sherman Anti-Trust Act was the first law passed by congress to prevent monopolistic business practices. Named after Senator John Sherman of Ohio, he had this law to pass the senate with a unanimous vote of 51-1 and the House with a vote of 242-0. President Harrison signed it into law in 1890. 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However, sanction of the Articles of Confederation by all thirteen states did not occur until March 1, 1781. The Articles created a loose confederation of sovereign states and a weak central government, which resulted in most of the power residing with the state governmentsRead MoreThe Modern History Of Oil1336 Words   |  6 Pagesthe Oil Creek Association, which capped output and enacted floor pricing to $4 a barrel. By 1970, John D. Rockefeller had officially founded the Standard Oil Company. This time period for the oil industry was a topic of hot debate as there were no anti-monopoly laws in place at the time. Standard Oil became the largest oil refiner and Multinational Corporation in the world. Rockefeller was aware of the competition in the oil industry and proactively began to purchase many of them. Any company that