Question

What was the purpose of the Federal Trade Commission and Clayton Antitrust Act?

A) establish collective bargaining practices
B) regulate labor unions
C) regulate and control large corporations

Answer 1

C.) Regulate and control large corporations.

Most importantly, it was to prevent monopoly power from rising.

Answer 2

The correct answer is C.

The Federal Trade Comission Act was passed by the US Congress in 1914, which also created in the same year the Clayton Antitrust Act.

The aim of these regulations was to prevent unlawful merges and business practices in general. From that point on, courts would be in charge of deciding, on a case basis, which firms were operating within the legal frameworks and which ones were not.