Which statement best describes the Sherman Antitrust Act?

Which statement best describes the Sherman Antitrust Act?

• A. The first major step to regulate business practices; passed in 1890; aimed to preserve competition by restricting monopolies
• B. A policy to promote global free trade
• C. A law to regulate labor unions
• D. A constitutional amendment guaranteeing corporate rights

Answer: (A)

The Sherman Antitrust Act was designed to keep markets competitive by stopping monopolistic power from crushing competition. It marks the first broad federal effort to regulate how businesses behave when their actions affect trade and competition, and it was enacted in 1890. That combination—the first major step to regulate business practices, the year 1890, and the aim to preserve competition by limiting monopolies—best captures what the act is about. It’s not about promoting global free trade, it doesn’t regulate labor unions, and it isn’t a constitutional amendment, so those descriptions don’t fit the purpose and scope of this law.

The Sherman Antitrust Act was designed to keep markets competitive by stopping monopolistic power from crushing competition. It marks the first broad federal effort to regulate how businesses behave when their actions affect trade and competition, and it was enacted in 1890. That combination—the first major step to regulate business practices, the year 1890, and the aim to preserve competition by limiting monopolies—best captures what the act is about. It’s not about promoting global free trade, it doesn’t regulate labor unions, and it isn’t a constitutional amendment, so those descriptions don’t fit the purpose and scope of this law.