Asked by jesus salazar on May 25, 2024
Verified
Which statement is true?
A) The first trustbusters were Presidents Franklin
B) The merger of Exxon and Mobil oil companies was a vertical merger.
C) The Supreme Court did not use the rule of reason in the ALCOA case of 1945.
D) The trend toward concentration of business has declined ever since the passage of the Sherman Antitrust in 1890.
Trustbusters
Individuals or government entities that work to prevent or break up monopolies and trusts, aiming to encourage competition in the marketplace.
Alcoa Case
A landmark antitrust case in the United States that significantly expanded the concept of monopolistic practices and market domination by the Aluminum Company of America.
Sherman Antitrust
A landmark federal statute in the United States that prohibits monopolistic business practices, aiming to promote fair competition for the benefit of consumers.
- Examine the legal meanings and consequences of antitrust cases.
Verified Answer
AV
Adriana VillagomezMay 28, 2024
Final Answer :
C
Explanation :
The Supreme Court indeed did not use the rule of reason in the ALCOA (Aluminum Company of America) case of 1945. Instead, it found ALCOA guilty of monopolizing the aluminum industry through practices that effectively excluded competition, without applying the more flexible "rule of reason" analysis that considers whether the business practice has a legitimate competitive purpose.
Learning Objectives
- Examine the legal meanings and consequences of antitrust cases.