Antitrust Laws Of The Sherman Act And The Ftc Act

1381 Words Nov 10th, 2015 6 Pages
A preliminary question is what are antitrust laws? They are a series of laws designed to protect competition in the marketplace. Antitrust laws prevent restrains of trade or commerce. Black’s Law Dictionary defines antitrust laws as “[t]he body of law designed to protect trade and commerce from restraints, monopolies, price-fixing, and price discrimination.” The main law regulating antitrust is the Sherman Antitrust Act, which makes it illegal for individuals or groups to restrain trade or commerce. Besides the Sherman Act, the other law that factors into Dental Examiners is the Federal Trade Commission Act, which prohibits any “[u]nfair methods of competition.” This law serves as the basis for the majority of Federal Trade Commission enforcement actions. The Sherman Act and the FTC Act largely prohibit the same activities.
Antitrust laws do not prohibit all restrains of trade, instead they only prohibit restrains of that meet two factors. The first factor is whether the restraint of trade is “unreasonably restrictive of competitive conditions.” Therefore, if a restraint of trade is not unreasonable, given either its circumstances or its justification, it will not violate antitrust law. For example, if a restrain has a minimal impact then it is likely not an unreasonable restraint of trade. Similarly, if the restrain was motivated by a good purpose then it may not be an unreasonable restraint of trade. In summation, antitrust laws are designed to prevent…
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