Question

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts?

A. The Sherman Antitrust Act.
B. The Federal Communications Act.
C. The Trade Commission Act.
D. The Food, Drug, and Cosmetics Act.
E. The Robinson-Patman Act.

Answer 1

The Webb-Pomerene Act of 1918 exempted American companies from the Sherman Antitrust Act when they cooperated for export activities, allowing them to form associations to enhance their international competitiveness without facing antitrust violations.

Step-by-step explanation:

The Webb-Pomerene Act of 1918 allowed American companies to cooperate in export trade activities without being subjected to the regulations of the Sherman Antitrust Act. This act was a critical move to bolster international competitiveness of American firms by enabling them to form export trade associations. As a result, when American business firms joined forces in export activities under the provisions of the Webb-Pomerene Act, they were permitted to coordinate activities without the fear of violating antitrust laws that were established to prevent anti-competitive practices, such as those outlined in the Sherman Antitrust Act.