The Sherman Anti Trust Act of 1890 is a law that regulates competition among enterprises, it was created and signed by congress. It was named after the senator of Ohio, John Sherman. In 1914 it was then amended by the Clayton Act. It was passed by congress under president Harrison. It prevents raising of prices by restriction of supply, and protect from abuses of being greedy. Avoiding monopolization of a company to achieve higher profits or statuses.It is divided into 3 sections explaining rules and regulations that must be abided by under the act. Violation of the act is punishable by department of Justice who is able to bring suits if necessary. Treble damages are awarded to the party involved, this means that 3X given back of the amount that the guilty party had charged the victim. So ultimately they end up losing out on more than they thought they were gaining by illegally raising the prices.
The importance of this act is to minimize personal gain while hurting consumers in the process. It regulates companies abilities to raise prices for the sole reason of personal or financial gains. In times of need it is common for companies to get greedy and want to make as much money as possible. Having a punishable consequence is a good idea because it keeps those selling accountable and they know the consequences if they dont abide by the law.
I think that this act is a perfect example of what businesses cannot do in times such as the corona virus pandemic. When people are needing more of supplies and food, they shouldn't have to suffer even more by spending more money on these needed products. If this weren't illegal, prices could sky rocket and people may not even be able to afford things that are essential for living. This would create panic and stealing and theft would probably occur for items that are life sustaining. If people are unable to afford things when times are tough, especially when people are out of jobs, its prohibits them from going about their daily lives and remaining healthy. While this may not have much effect on higher classes who could afford a spike in prices, many people do not have the luxury of spending an extra few dollars on something that is essential for them to live. The poor people would be at a big disadvantage and would have to turn to other means to obtain these items like stealing or selling illegal items for money. Generations would have to be making more money and getting better jobs just to support themselves for basic needs.
Referenced Articles:
https://en.wikipedia.org/wiki/Sherman_Antitrust_Act_of_1890
https://www.law.cornell.edu/wex/sherman_antitrust_act
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