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This Day in Legal History: The Clayton Antitrust Act
On October 15, 1914, President Woodrow Wilson signed the Clayton Antitrust Act. The Sherman Act of 1890 had banned contracts in restraint of trade and monopolization, but in broad language that left courts to decide case by case what was illegal. Clayton filled in specifics. It prohibited price discrimination that would substantially lessen competition, exclusive-dealing and tying arrangements with the same effect, interlocking boards of directors among competitors, and mergers whose effect “may be substantially to lessen competition.” That…
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