Essay on Laws for Fair, Balanced and Competitive Business Practice

Essay on Laws for Fair, Balanced and Competitive Business Practice

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United States has several laws that ensure that competition among businesses flow rely and new competitors get free access to the market. These laws intend to ensure fair and balanced competitive business practices. However, there are times when some businesses will do anything to gain competitive edge. USA has strong antitrust laws that prohibit fixing market price, price discrimination, conspiring boycott, monopolizing, and adopting unfair business practices. The history of Antitrust laws goes back to 1890 when Congress passed Sherman Act. In 1914, Congress passed two more acts: Federal Trade Commission Act, and Clayton Act. With some revisions, these three acts are still core antitrust acts.
The Sherman Act outlaws every contract, combination or conspiracy in restraint of trade. It also prohibits any attempt to monopolize. The Sherman Act enforcement can be civil or criminal. The criminal penalty can be up to $1 million for an individual and $100 million for a corporation. The Federal Trade Commission Act bans unfair methods of competition and deceptive acts or practices. Violation of Sherman Act also violates Federal Trade Commission Act. The Sherman Act and Federal Trade Commission Act are very effective, but they do not address certain specific practices. The Clayton Act addresses some specific practices such as mergers and interlocking directorates. For example, Section 7 of Clayton Act prohibits mergers and acquisitions that lessen competition or tend to create monopoly. Apart from these three core antitrust acts, most states also have antitrust laws. (FTC, 2014)
Apart from Antitrust laws, there are several other laws that promote fair business practices. The Robinson-Patman Act prohibits price discrimination. This act ...


... middle of paper ...


...efits from adopting unfair business practices and discouraging competition are much higher than the expected penalty and punishment. With changing time, there is need to make these laws more effective and relevant.



Works Cited

FTC. (2014). FTC Announces Top National Consumer Complaints for 2013. Retrieved From: http://www.ftc.gov/news-events/press-releases/2014/02/ftc-announces-top-national-consumer-complaints-2013
FTC. (2014). The Antitrust Laws. Retrieved From: http://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws
No Author. Antitrust Law Examples: Are They Helpful to the Free Marketplace. Retrieved From: http://www.antitrustlaws.org/Antitrust-Law-Examples.html
Samozain. (2013). Laws to Promote Fair and Competitive Practices. Retrieved From: http://business-basics.org/laws-to-promote-fair-and-competitie-practices/

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