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

Summarize the four major pieces of polity collectively known as the Antitrust laws EssayUnited States antitrust law is a order of federal and state government laws, which regulates the conduct and organization of business corporations, generally to promote beautiful contention for the benefit of consumers. The four major pieces of legislation known as the Antitrust Laws include The Sherman modus operandi, The Clayton Antitrust Act, The federal official Trade relegating, 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 to a fault 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 military commission Act (FTC) was created to follow through antitrust laws a nd the Clayton Act in particular. The FTC investigates unfair competitive practices and when appropriate issues cease-and desist orders. In 1950 the Celler-Kefauver Act was created to obturate the loophole the was left available from the Clayton Acts Section 7.This clause was put in place to catch a firm from acquiring stocks in a competitive firm in order to merge. The Celler-Kefauver Act closed that loophole in order to prevent any firm from reducing the challenger. (McConnell 375) B. dispute the intended role 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 jibe its own price and output. (McConnell 164) Industrial regulation is used to reduce the market power of monopolies.Its excessively used to reduce the market power of oligopolies, prevent collusion and increase market competition. A beautiful monopoly is a mar ket structure in which only one firm is the sole seller. The purpose of industrial regulation in regards to monopolies is clearly to protect the public from price gauging and companies controlling demand. Since monopolies have no competition they have complete control over pricing and work. (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 free agency that regulates the interstate transmission of natural heavy weapon, electricity, oil pipelines, and water-powered sites. FERC also reviews proposals to build liquefied natural blow out (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 appointed 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 kitty 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. Social regulation deals with the broader collision 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 unsafe products, improving working conditions and safety, 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 do drugs 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 caoutchouc and Health Administration (1972) exists to ensure health and safety for workers(1) Environment Protection Agency (1972) exists to regulate interference pollution, air, and water-powered Cons umer Product Safety Commission (1972) exists to protect the safety of consumer products(1)