Which early U.S. law was aimed at reducing the power of large corporations and promoting competition?

Which early U.S. law was aimed at reducing the power of large corporations and promoting competition?

• A. Clayton Act
• B. Federal Trade Commission Act
• C. Robinson-Patman Act
• D. Sherman Act

Answer: (D)

The early move to curb the power of large corporations and promote competition is the Sherman Antitrust Act of 1890. It made illegal any attempt to monopolize or to restrain trade, targeting trusts and conspiracies that limited competition. By outlawing such anti-competitive practices, it set the fundamental principle that markets should be open and competitive, rather than dominated by a few big firms. The other acts came later and built on this foundation, addressing more specific abuses or creating enforcement mechanisms, but the Sherman Act is the foundational step in reducing corporate power and encouraging competition.

The early move to curb the power of large corporations and promote competition is the Sherman Antitrust Act of 1890. It made illegal any attempt to monopolize or to restrain trade, targeting trusts and conspiracies that limited competition. By outlawing such anti-competitive practices, it set the fundamental principle that markets should be open and competitive, rather than dominated by a few big firms. The other acts came later and built on this foundation, addressing more specific abuses or creating enforcement mechanisms, but the Sherman Act is the foundational step in reducing corporate power and encouraging competition.