Explain the overall purposes of the Sherman Antitrust Act, the Clayton Act, and the Robinson-Patman Act. How do each of these Acts relate to each other?

Answer 1

Congress passed the Sherman Act in 1890 to prevent extreme concentrations of economic power. Because this statute was aimed at the Standard Oil Trust, which then controlled the oil industry throughout the country, it was termed antitrust legislation. Section 1 of the Sherman Act prohibits all agreements "in restraint of trade." Section 2 of the Sherman Act makes it illegal to monopolize or attempt to monopolize a market.
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The Clayton Act prohibits mergers that are anticompetitive. Companies with substantial assets must notify the Federal Trade Commission before undertaking a merger. This notification gives the government an opportunity to prevent a merger ahead of time. The Clayton Act also prohibits tying arrangements.

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The Robinson-Patman Act makes it illegal to charge different prices to different customers if the items are the same and the price discrimination lessens competition. Suppliers are allowed to charge different prices for the same goods if the costs of servicing the buyer are lower (i.e., selling a large quantity to one buyer) or if the supplier is simply meeting competition.