00:01
What activities in the marketplace are covered by the clayton act? so this is the clayton antitrust act of 1914.
00:15
So we need a bit of background to understand this act.
00:18
So this came in after another act called the sherman antitrust act.
00:23
The sherman antitrust act was in 1890, and it was an attempt to break up very harmful practices by large corporations, particularly cartels.
00:36
So this would be where companies in the same market would get together and they would collude to make themselves more money and it would be harmful to consumers.
00:46
Maybe they could increase prices if they all agreed to increase their price together.
00:50
So they're avoiding competition.
00:54
Now, the sherman act cracked down on these cartels.
00:58
They stopped so much collusion, but there are a couple of really unhelpful side effects.
01:03
First, unions could be treated as cartels...
