The Sherman Anti-Trust Act was a federal law passed in 1890 aimed at preventing monopolistic business practices that limited competition. It prohibited trusts or combinations that restrained trade or commerce.
Related terms
Trusts: Large corporations formed by smaller companies merging together under one management to control markets.
Clayton Antitrust Act: An amendment passed in 1914 that strengthened antitrust laws by prohibiting certain types of business conduct deemed harmful for competition.
Standard Oil Company: An example of a company targeted by the Sherman Anti-Trust Act due to its monopoly over the oil industry.