Question

Why was the Clayton Act of Antitrust passed?
a) To replace the Sherman Act of Antitrust
b) To replace the Trade Act
c) To clarify the Federal Trade Commission Act
d) To clarify and elaborate on the Sherman Act of Antitrust
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Answer 1

Answer:A  is your answer

Explanation:

Answer 2

The correct answer in this case would be option d) or to clarify and elaborate on the Sherman Act of Antitrust

Explanation:

• Clayton Act was officially implemented in 1914 under the enforcement of the Federal Trade Commission(FTC) and Antitrust Division under the US government,which was aimed at abolishing antitrust and monopolistic business practices such as fixing higher prices for goods and services and other unscrupulous conducts with profit-maximizing intentions.
• The Sherman Antitrust Law was officially passed in 1890 with the similar purpose to restrict unjust and immoral market practices by firms or businesses and promote fair market competition that would safeguard the economic interests and rights of both the sellers and buyers.
• The Sherman Antitrust was full of unclear,complicated and ambiguous texts and language which was often manipulated by big and large scale businesses to extend their unjust profit maximizing practices in the market.This significantly hindered the antitrust and fair market objectives of the act.
• Hence,Clayton Act basically modified and reframed the original Sherman Antitrust law with more clear language and some changes or adjustments of the initial clauses and provisions mentioned under the Sherman Act,pertaining to condemnation of certain antitrust practices.Hence,it can be seen as an extension and modification of the erstwhile Sherman Act.