LOS g: Summarize U.S. antitrust legislation.

Q1. The first major piece of U.S. antitrust legislation was enacted in:

A)   1876.

B)   1890.

C)   1914.

Q2. The U.S. federal governmental regulatory agency that reviews and approves mergers is called the:

A)   Federal Trade Commission.

B)   Department of Justice.

C)   Securities and Exchange Commission.

Q3. Which of the following statements regarding the Celler-Kefauver Act is least accurate? The Celler-Kefauver Act:

A)   was passed to address weaknesses in the Clayton Act.

B)   required that all mergers must be approved by the appropriate governmental regulatory agency in advance.

C)   added rules to address vertical and conglomerate mergers.

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Q1. The first major piece of U.S. antitrust legislation was enacted in:

A)   1876.

B)   1890.

C)   1914.

Correct answer is B)

The first major piece of U.S. antitrust legislation, the Sherman Antitrust Act, was enacted in 1890.

Q2. The U.S. federal governmental regulatory agency that reviews and approves mergers is called the:

A)   Federal Trade Commission.

B)   Department of Justice.

C)   Securities and Exchange Commission.

Correct answer is A)

In the U.S., the Federal Trade Commission is the regulatory agency that reviews and approves mergers. The Department of Justice also reviews and approves mergers, but it is a branch of government, not a regulatory agency.

Q3. Which of the following statements regarding the Celler-Kefauver Act is least accurate? The Celler-Kefauver Act:

A)   was passed to address weaknesses in the Clayton Act.

B)   required that all mergers must be approved by the appropriate governmental regulatory agency in advance.

C)   added rules to address vertical and conglomerate mergers.

Correct answer is B)

The Hart-Scott-Rodino Act of 1976 required that all mergers must be approved in advance by the appropriate regulatory agency. Both remaining statements are correct with respect to the Celler-Kefauver Act of 1950.