Clayton Antitrust Act

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Clayton Antitrust Act,

1914, passed by the U.S. Congress as an amendment to clarify and supplement the Sherman Antitrust ActSherman Antitrust Act,
1890, first measure passed by the U.S. Congress to prohibit trusts; it was named for Senator John Sherman. Prior to its enactment, various states had passed similar laws, but they were limited to intrastate businesses.
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 of 1890. It was drafted by Henry De Lamar Clayton. The act prohibited exclusive sales contracts, local price cutting to freeze out competitors, rebates, interlocking directorates in corporations capitalized at $1 million or more in the same field of business, and intercorporate stock holdings. Labor unions and agricultural cooperatives were excluded from the forbidden combinations in the restraint of trade. The act restricted the use of the injunctioninjunction,
in law, order of a court directing a party to perform a certain act or to refrain from an act or acts. The injunction, which developed as the main remedy in equity, is used especially where money damages would not satisfy a plaintiff's claim, or to protect personal
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 against labor, and it legalized peaceful strikes, picketing, and boycotts. It declared that "the labor of a human being is not a commodity or article of commerce." Organized labor was as heartened by the act as it had been dejected by the doctrine of the Danbury Hatters' CaseDanbury Hatters' Case,
decided in 1908 by the U.S. Supreme Court. In 1902 the hatters' union instituted a nationwide boycott of the products of a nonunion hat manufacturer in Danbury, Conn.
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, but subsequent judicial construction weakened the act's labor provisions. The Clayton Antitrust Act was the basis for a great many important and much-publicized suits against large corporations. Later amendments to the act strengthened its provisions against unfair price cutting (1936) and intercorporate stock holdings (1950).
References in periodicals archive ?
7, Anago filed suit against Tecnol claiming: violation of the Clayton Anti-Trust Act, securities law violations under the Williams Act and other causes of actions.
a Canadian company, alleging that its merger with Showscan Entertainment announced in August 1997 is in violation of the Sherman and Clayton Anti-trust Acts.