Progressive Movement Practice Exam

What was the purpose of the Interstate Commerce Act, the Sherman Antitrust Act, and the Clayton Antitrust Act?

1. Eliminate unfair business practices

2. Reduce imports from foreign nations

3. Reduce the power of the unions

4. Increase the power of local governments

The correct answer is: Eliminate unfair business practices

The Interstate Commerce Act, the Sherman Antitrust Act, and the Clayton Antitrust Act all aimed to regulate and eliminate unfair business practices that were believed to harm competition and the public. The Interstate Commerce Act, enacted in 1887, was designed to regulate railroads and their rates, ensuring that railroads operated fairly and did not engage in discriminatory practices that favored certain customers over others. This was crucial in creating a fair playing field for businesses and consumers in the transportation sector. The Sherman Antitrust Act, passed in 1890, targeted monopolies and practices that restrained trade or commerce. It made it illegal for companies to conspire to enter into agreements that would limit competition or create monopolies, thus supporting fair competition in the marketplace. The Clayton Antitrust Act, adopted in 1914, strengthened the provisions of the Sherman Act. It addressed specific practices such as price discrimination, exclusive dealing agreements, and mergers that could significantly lessen competition. This act provided more detailed definitions of unfair business practices and sought to prevent monopolistic behavior. These legislative measures collectively aimed to protect consumers and small businesses, promoting fair competition and curbing the excesses of powerful corporations that could manipulate the market to their advantage.