Clayton Antitrust Act of 1914

Definition

The Clayton Antitrust Act was a law enacted in 1914 to strengthen existing laws against unlawful restraints and monopolies, and to further regulate interstate commerce.

Analogy

Think of the Clayton Antitrust Act as a referee in a soccer game. Just like how the referee ensures fair play and prevents one team from dominating unfairly, this act prevented businesses from becoming too powerful or creating monopolies.

Related terms

Sherman Antitrust Act: An 1890 law that banned any trust that restrained interstate trade or commerce.

Monopoly: A situation where a single company or group owns all or nearly all of the market for a given type of product or service.

Trusts: Large business entities formed with intent to monopolize business, stifle competition, manipulate prices, and control large sectors of economy.