What was a consequence of violating the Sherman Antitrust Act? All company employees could be sent to jail. Corporations could be broken up. Private citizens could be sued. Consumers could be sent to jail.

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Clover

25 April, 02:10

What was a consequence of violating the Sherman Antitrust Act? All company employees could be sent to jail. Corporations could be broken up. Private citizens could be sued. Consumers could be sent to jail.

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Deandre Henson · Answer 1

Companies would get fined a lot of money + some individuals could be sentenced to 3 years in Jail.

Monica Montes · Answer 2

The correct answer is: "Corporations could be broken up".

The Sherman Antitrust Act was a federal piece of legislation enacted in 1890 by the US Congress, aiming to guarantee free competition in markets and to prevent the formation of monopolies or the concentration of too much market power is the hands of a few producers (oligopoly and illegal agreements). Such schemes which lacked competition, would ultimately harm consumers, that would have no power at all in the markets as they would be forced to consume higher priced and lower quality products than in a freely competitive environment.

Therefore, if a company violates the provisions included in this act, it would be likely fined and splitted so that its market power would diminish and the violation would dissapear.