Clayton Act

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Definition: Clayton Act

Clayton act is an integral part of U.S antitrust law which aims to protect customers by prohibiting certain trade practices harmful to them i-e this act safeguard customer against monopoly, cartels and trusts. This act clearly specifies the prohibited acts, exemption schemes and remedial measures.

It is very improved antitrust law, clearly defining the nature and scope of various unlawful practices much better than that in other laws like Sherman Act Section 2.every single topic like merger ,holding company etc are explained in detail in this act

How Clayton act is different from Sherman act?

One of the major difference between Clayton act his predecessor Sherman Act is that under its sec. 6 Clayton act exempts labor unions and agricultural organization by arguing that human labor is not an article of commerce thus it promotes their legitimate functioning and does not interfere any more in case of strikes, lockouts and collective bargaining .

Enforcement of Clayton Act

Clayton act is enforced by Federal trade commission. This act empowers private parties victims of violations, to sue for terrible damages (sec.4) and claim for injunctive relief ( Sec.16)it aslo grants an implied power to the injured to force defendants to divest their assets.

Below is the list of some famous antitrust cases which not only triggered the formation of this act but also strengthened its importance

• Standard Oil Co. of New Jersey v. United States 221 U.S. 1 (1911)

• United States v. AT&T

• Eastman Kodak Company v. Image Technical Services, Inc., 504 U.S. 451 (1992)


Hence, this concludes the definition of Clayton Act along with its overview.


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