Summarize the four major pieces of legislation collectively known as the Antitrust laws Essay Example for Free

Summarize the four major(ip) pieces of legislation collectively known as the Antitrust laws studyUnited States antitrust law is a collection of national and state government laws, which regulates the conduct and organization of business corporations, generally to promote fair rival for the benefit of consumers. The four major pieces of legislation known as the Antitrust Laws include The Sherman Act, The Clayton Antitrust Act, The Federal Trade way, and the Celler-Kefauver Act. The Sherman Act was created in 1890 had two major provisions which was to prohibit conspiracies to restrain trade and also to outlaw monopolization. In 1914 the Clayton Act was passed to expand off of the Sherman Act. The Clayton Act strengthened the Sherman Act in some(prenominal) ways price discrimination, typing contracts, acquisition, and interlocking directorates. In 1914, the Federal Trade Commission Act (FTC) was created to enforce antitrust laws and the Clayton Act in particular. The FTC invest igates unfair rivalrous practices and when appropriate issues cease-and desist orders. In 1950 the Celler-Kefauver Act was created to close the loophole the was left available from the Clayton Acts Section 7.This clause was put in place to incorporate a firm from acquiring stocks in a competitive firm in order to merge. The Celler-Kefauver Act closed that loophole in order to prevent some(prenominal) firm from reducing the competition. (McConnell 375) B. talk of the intended purpose of industrial regulation as it applies to the following market structures An oligopoly is a market form in which a market or industry is dominated by a small number of sellers. An oligopoly has the ability to determine its own price and output. (McConnell 164) Industrial regulation is utilise to reduce the market power of monopolies.Its also used to reduce the market power of oligopolies, prevent collusion and increase market competition. A saturated monopoly is a market structure in which only one firm is the sole seller. The purpose of industrial regulation in regards to monopolies is clearly to protect the existence from price gauging and companies controlling demand. Since monopolies have no competition they have complete control over pricing and take. (McConnell 195) C. Explain the major functions of the three primary federal and state regulatory commissions that govern industrial regulation.The Federal Energy Regulatory Commission or FERC (1930) is an independent agency that regulates the interstate transmission of natural catalyst, electricity, oil colour pipelines, and water-powered sites. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines as well as licensing hydro power projects. (2) The Federal Communication Commission or FCC (1934) regulates interstate and international communications by telephones, televisions, cable televisions, radios, telegraph, CB radios, and satellite in over 50 states.The FCC is directed by five commissioners who are name by the President of the United States and confirmed by the U. S Senate. (3) The State Public Utility Commissions is represented by NARUC which is responsible for utility services (electricity, gas telephones) in different states. (4) The reasoning behind the three is to control pricing so the public can benefit from the economies of scale that occur with monopolies and do so in a way that provides a fair return for those producers.Specifically, this intent is covered in the public interest theory of regulation which protects consumers from unfair pricing. D. Discuss the intended purpose of social regulation as it applies to all market structures. neighborly regulation deals with the broader impact of business on consumers, workers, environment and the third parties. Social regulation is concerned with the physical qualities of the goods produced, the conditions under which production occurs, and the impact of the production on society .Social regulation increases economic efficiency and societys well-being by removing life-threatening products, improving working conditions and condom, decreasing economic discrimination, and reducing pollution. One example is the Equal Opportunity Commission that enforces laws against workplace discrimination. Social Regulation intrudes into the day-to-day production process to a greater extent than industrial regulation. (McConnell 384) E. Explain the major functions of the five primary federal regulatory commissions that govern social regulation.Food and drug Administration (1906) verifies safety and effectiveness of food, drugs, and cosmetics (1) Equal Employment Opportunity Commission (1964) exists to hire, promote, and discharge workers(1) Occupational Safety and Health Administration (1972) exists to ensure health and safety for workers(1) Environment Protection Agency (1972) exists to regulate noise pollution, air, and water-powered Consumer Product Safety Commission (19 72) exists to protect the safety of consumer products(1)