The rule of reason is a doctrine developed by the united states supreme court in its interpretation of the sherman antitrust act the rule, stated and applied in the case of standard oil co of new jersey v. Sherman antitrust act, first legislation enacted by the united states congress (1890) to curb concentrations of power that interfere with trade and reduce economic competition it was named for us senator john sherman of ohio, who was an expert on the regulation of commerce.
For examples, see the massachusetts antitrust act or the virginia antitrust act statutes & interpretation statutes initially passed in 1890, the sherman act was intended to govern single-firm and multi-firm conduct deemed anticompetitive it is divided primarily into two sections.
The sherman antitrust act this act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade this includes agreements among competitors to fix prices, rig bids, and allocate customers, which are punishable as criminal felonies.
The sherman antitrust act, the first federal antitrust law, authorized federal action against any combination in the form of trusts or otherwise, or conspiracy, in restraint of trade in the eyes of many congressmen, the measure would look good to the public, but be difficult to enforce.
The sherman antitrust act of 1890 (26 stat 209, 15 usc §§ 1–7) is a united states antitrust law passed by congress under the presidency of benjamin harrison, which regulates competition among enterprises. The sherman anti-trust act passed the senate by a vote of 51–1 on april 8, 1890, and the house by a unanimous vote of 242–0 on june 20, 1890 president benjamin harrison signed the bill into law on july 2, 1890. The sherman antitrust act of 1890 was the first measure passed by the us congress to prohibit trusts it was named for senator john sherman of ohio, who was a chairman of the senate finance committee and the secretary of the treasury under president hayes.
The sherman antitrust act, one of the first major business regulatory attempts after the civil war, is broken down into two main parts: section 1 and section 2 within section 2, the main topics covered are the use of monopolies, whether intended or unintended, and either by an individual company or companies, to restrain interstate commerce.
The interstate commerce act sherman antitrust act and clayton antitrust act were attempts to limit monopolies in the late 1800's, the design for new markets for manufactured goods and coaling stations led the united states to persue a policy of .