19+ Clayton Act Section 7 PNG. Holding company defined as a company whose primary purpose is to hold stocks of other companies, which the government saw as a common and favorite method of promoting monopoly and a mere. Case, the clayton act prohibits only the acquisition of stock and not the assets of the.
The act prohibited exclusive sales contracts, local price cutting to freeze out competitors, rebates, interlocking. The act supplemented and strengthened the sherman act of 1890, an existing antitrust bill that had failed to effectively regulate the massive corporations. These contracts may be per se illegal if monopolistic behavior is present.
That no corporation engaged in commerce shall acquire, directly or indirectly, the whole or any part of the stock or other share capital of another corporation engaged.
The clayton antitrust act is an amendment passed by the u.s. When congress passed the clayton act in 1914, it included a provision (section 6) that specifically exempted the creation of farmer cooperatives and labor unions and collective activities by farmers and workers from the general operation of the antitrust laws. If an increase in price of one product or service leads consumers to purchase another product or service. These contracts may be per se illegal if monopolistic behavior is present.