Clayton Act

Summary of Clayton Act

An act of Congress, passed in 1914, that expands upon the antitrust (read this and related legal terms for further details) provisions of the Sherman Act by making it illegal for firms to engage in price discrimination and exclusive dealing arrangements, and forbidding interlocking directorates. The Clayton Act was reinforced in 1936 by the Robinson-Patman Act, and in 1950 by a further amendment to regulate certain acquisitions of assets and stock purchases.

(Main Author: William J. Miller)