TABLE 2.3 Key legislation Affecting Selling and Management
LAW INTEND TO REGULATE BUSINESS COMPETITION
Sherman Antitrust Act (1890)-prohibits (a)” monopolies or attempts to monopolize” and (b) “ contracts, combination, or conspiracies in restraint of trade” in interstate and forging commerce.
Federal Trade Commission Act (1914)-established the FTC as a body of specialists with broad powers to investigate and to issue cease-and-desist orders to enforce Section 5, which declares that “ unfair methods of competition in commerce are unlawful.”
Clayton Act (1914)-supplements the Sherman Act by prohibiting certain speciftic practices (certain types of price discrimination, tying clauses, and exclusive dealing, inter-corporate stockholdings, and interlocking directorates) “ where the effect….may by to subsatantially lessen competition or tend to create a monopoly in any line of commerce.” Provides that violating corporate officials can be held individually responsible.
Robinson – Patman Act (1936)-amends the Clayton Act by strengthening the prohibition of price discrimination (subject to certain defenses). Give the FTC the right to establish limits on quantity discounts, to forbid brokerage allowances except to independent brokers, and to prohibit promotional allowances, services, to facilities except where made available to all “ on proportionately equal terms.
Wheeler-lea Act (1938)-Amends the FTC act ; prohibits unfair and deceptive acts and practices regardless of whether competition is injured.
Lanham trademark Act (1938)-repeals brand and trademarks.
Consumer Good Pricing Act (1975)-repeals federal “ fair-trade laws” and state laws allowing manufacturers to set retail prices.
FCT improvement Act (1980)-enables the Senate and House of Representatives to exercise joint veto power over FTC trade regulations; limits FTC power to regulate unfairness issues.