Wilson's New Freedom Reforms:
1914 Clayton Antitrust Act for kids
President Woodrow
Wilson, like his predecessors Theodore Roosevelt and William Taft,
was a firm supporter of the
Progressive Movement and
Progressive reforms. His New Freedom polices included the
passing of the federal law known as the Clayton Antitrust Act which
attacked the trusts and protected the labor unions. The 1914 Clayton
Antitrust Act was important legislation during the Progressive Era
and addressed the issues of Price Discrimination, Tying And
Exclusive Dealing, Private Lawsuits, Mergers and included a Labor
Exemption.
Who drafted the
Clayton Antitrust Act?
The 1914 Clayton Antitrust Act was
drafted by congressman Henry De Lamar Clayton (1857–1929), a lawyer
and progressive Representative from Alabama. the Act was an
"antitrust law" described as "An Act to protect trade and commerce
against unlawful restraints and monopolies".
1914 Clayton Antitrust Act: What is a Trust and What is an
Antitrust?
Definition of a Trust:
A trust is a business organization, or a number of corporations,
formed mainly for the purpose of regulating the supply and price of
products and commodities or monopolizing an industry or business.
The advantages of a trust are due to the economies of scale made
possible in running a big business, and by doing away with
competition. Definition of an Antitrust:
The term Antitrust relates to laws and regulations that are designed
to protect trade and commerce from unfair business practices that
limit competition, or control prices.
Purpose of
Clayton Antitrust Act for kids: Why was the amendment to the law passed?
The purpose of the Clayton Antitrust Act
was to revise and strengthen the
1890 Sherman Antitrust Act and clearly define unfair
business practices. It was designed to prevent greedy corporations
from taking advantage of consumers and small businesses. The purpose
of the Clayton Antitrust Act was:
● To promote competition in
American businesses and discourage the formation of monopolies
and exclusive dealing and tying practices
● To prohibit
anticompetitive mergers
● To prohibit
anticompetitive price discrimination
● To prohibit price fixing,
and exclusive sales contracts
● To expand the power of
private parties to sue and obtain triple damages and costs
● To legalize the
organization of Unions including peaceful strikes, boycotts and
picketing against companies and to restrict the use of the
injunction against labor
Clayton Antitrust Act Examples for kids: Price Discrimination
The Clayton Antitrust Act
addresses corporate price discrimination preventing companies from
engaging in predatory lending that might lessen competition or
create a monopoly. Example of price fixing: A large company, such as
Standard Oil, would charge a high price in a town where it held a
monopoly but would charge a lower price in a competitive town until
it drove the competitors out of business. The bottom line was that
companies could not charge different customers different prices.
Clayton Antitrust Act Examples: Exclusive Deals and "Tying
arrangements"
The Clayton Antitrust Act
prevents companies from exclusive dealing and "tying arrangements"
by selling products with the condition that the buyer can only use
their product. The act also banned tying agreements, which required
retailers who bought from one company to stop selling a competitor’s
products.
Clayton Antitrust Act Examples: Private Lawsuits
Both the United States
government and the states have the right to enforce antitrust laws.
The Clayton Antitrust Act provides for private lawsuits to be
brought against companies and obtain a damage award three times as
large as the actual loss. If the plaintiff wins such a lawsuit the Clayton Antitrust Act
states that the defendant will have to pay the plaintiff's
(claimant) attorneys' fees.
Clayton Antitrust Act Examples: The Prohibition of Anticompetitive
Mergers
The Clayton Antitrust Act
provides for the prohibition of anticompetitive mergers that are
designed to limit competition, create monopolies and make price
fixing easier.
Clayton Antitrust Act Examples: Labor Union Organization
President Woodrow Wilson was lobbied
by Labor Unions for to exemption from the antitrust
laws as their purpose was not to inhibit trade. The Clayton
Antitrust Act
legalized Labor Union Organization and affirmed the right of workers to go on
strike. The law ensured that
companies and corporations were forbidden from preventing the
organization of labor unions including peaceful strike action,
boycotts and picketing.
Modern Significance of the
Clayton Antitrust Act
The Clayton Antitrust Act
was legislation that provided the basis for a great many important
and law suits against large corporations that continue to this day.
Clayton Antitrust Act
for kids
The info about the Clayton Antitrust Act provides interesting facts and
important information about this important law that
was passed during the presidency of the 28th President of the United States of America.
Clayton Antitrust Act for kids - President Woodrow Wilson Video
The article on the Clayton Antitrust Act provides detailed facts and a summary of one of the important
progressive reforms and federal laws passed during his presidential term in office. The following
Woodrow Wilson video will
give you additional important facts and dates about the political events experienced by the 28th American President whose presidency spanned from March 4, 1913 to March 4, 1921.
Clayton Antitrust Act
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Interesting Facts about Clayton Antitrust Act for kids and schools
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Key events
and 1914 Clayton Antitrust Act for kids
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The 1914 Clayton Antitrust Act, a major
event in US history
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Woodrow Wilson Presidency from March 4, 1913 to March 4, 1921
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Fast, fun facts about the Clayton Antitrust Act
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Progressive laws and reforms of President Woodrow Wilson
● Woodrow Wilson Presidency and
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