Sherman Antitrust Act

(redirected from Sherman Antitrust Act of 1890)
Also found in: Encyclopedia.

Sherman Antitrust Act

The first legislation passed in the United States limiting trusts and monopolies. The Act prohibits agreements and collusion restricting trade, without providing many specifics. The Act was largely unenforced against the organizations it was intended to curtail. Indeed, the Act was invoked early on to restrict organized labor more than any other group. As a result, Congress passed the Clayton Act in 1914 to clarify American antitrust law. The Sherman Act has been criticized by many, notably Ayn Rand and her followers, for unfairly and inefficiently restricting the Invisible Hand of the market.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Sherman Antitrust Act

An 1890 federal antitrust law intended to control or prohibit monopolies by forbidding certain practices that restrain competition. In the early 1900s, the U.S. Supreme Court ruled that the Act applied only to unreasonable restraints of trade and thus could be used only against blatant cases of monopoly.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Sherman Antitrust Act

One of the antitrust laws designed to encourage competition and discourage monopolies.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The first antitrust law, the Sherman Antitrust Act of 1890, for example, was adopted in response to the emergence of powerful railroad and manufacturing conglomerates that were perceived to have excessive economic power.
Congress enacted the Sherman Antitrust Act of 1890 to limit certain anticompetitive actions such as monopolies and trusts that restrict trade.
The passage of the Sherman Antitrust Act of 1890 shifted antitrust from multiple state common law jurisdictions toward a national standard of fair trade applied to large and small traders alike.
In retrospect, the breakthrough legislation - not just for the US, but also internationally - was the Sherman Antitrust Act of 1890.
The Sherman Antitrust Act of 1890 was designed to eliminate monopolistic practices of the American Railway Union, the American Tobacco Company and the Norton Securities Trust.
The Sherman Antitrust Act of 1890 broadly prohibits contracts, combinations, and conspiracies in "restraint of trade" and makes it unlawful "to monopolize" any line of commerce.
How this issue has been addressed since the passage of the Sherman Antitrust Act of 1890 has ebbed and flowed with evolving theories and empirical evidence about how markets function and the degree of acceptance in our society of free markets to determine the distributions of income and wealth.
The primary piece of regulatory legislation affecting price signaling is the Sherman Antitrust Act of 1890, which forbids "every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations." Section 1 of the act raises two important issues regarding the legitimacy of price signaling:
Theodore Roosevelt had ordered the Justice Department to act against the Standard Oil Company of New Jersey under the Sherman Antitrust Act of 1890, but it took more than four years for the case to reach the Supreme Court.