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The Sherman Antitrust Act
This essay is published for informational purposes only. It is not legal advice, nor is it intended as a substitute for the advice of your attorney.
The Sherman Act is a federal law regulating anti-competitive behavior. The Sherman Act outlaws all contracts, combinations and conspiracies that unreasonably restrain interstate and foreign trade. The term restraint of trade refers to actions that tend to reduce free market competition. Examples of acts that would be considered a restraint of trade include agreements among competitors to fix prices, rig bidding, and agreements to allocate customers among competitors. The Sherman Act also makes it a crime to monopolize any part of interstate commerce. The Sherman Act states that every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the States or with foreign nations is illegal.
Anyone who enters into a contract or engages in any combination or conspiracy declared to be illegal under the Sherman Act will be guilty of a felony. If convicted, the punisment will by fine not exceeding $10,000,000 for a corporation, or $350,000 for an individual. Violators are subject to imprisonment not exceeding three years, or by both by a fine and a prison sentence at the discretion of the Court.
Section 1: Forbids combinations and conspiracies in restraint of interstate and international trade.
Section 2: Forbids monopolies and attempts to monopolize interstate and international trade.
Edited by Michael C. Dennis. Mr. Dennis is a business consultant specializing in improving the quote to cash process. He can be reached by email at mcdennis13@yahoo.com with questions or business inquiries.