Asked by Teguh Daeli on May 19, 2024

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Section 8 of the Clayton Act,as modified by the Antitrust Amendments Act of 1990,prohibits the same individuals from controlling competing corporations when those individuals are:

A) shareholders.
B) directors or senior officers.
C) mid-level officers.
D) managerial employees.

Clayton Act

A U.S. antitrust law enacted to promote competition and prevent monopolies by prohibiting certain types of discriminatory prices, services, and exclusive agreements among businesses.

Directors

Members of a company's board who are elected by shareholders to oversee the management and make significant business decisions.

Antitrust Amendments Act

Refers to legislative changes aimed at strengthening laws that regulate business practices to ensure fair competition and prevent monopolies.

  • Explain the role and implications of interlocking directorates under antitrust laws.
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Verified Answer

NC
Nancy CampanaMay 20, 2024
Final Answer :
B
Explanation :
Until 1990,the statute's prohibition against interlocks was limited in scope because it barred only interlocking directorates.Nothing in the original language of Section 8 prohibited a person from serving as an officer of two competing corporations,or as an officer of one firm and a director of its competitor.The Antitrust Amendments Act of 1990,however,expanded the scope of the statute by including senior officers (defined as officers elected or chosen by the board of directors)within its reach.