Clayton Act

Clayton Act

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  • Okay, we still have to distribute laces to two more shoe companies.
  • Yes, let's distribute to Converse and to Vans, who will assure us great deals.
  • Sounds great! and how much should we sell the product to each company for?
  • How about we charge Converse about double the amount of what we charge Vans, since converse has more demand for shoe laces.
  • Wait what?! Excuse me Mr. CEO of Spectacular Laces Co. but you cannot sell me the same laces for double the price you sold to Vans!
  • Hello Mr. CEO of Converse! We would like to sell you shoe laces for about $10000 for 1 year, what do you say?
  • Well after the Clayton Antitrust Act was passed in 1914 as in addition to the Sherman Antitrust act from 1890, it ruled that certain business practices that promote the formation of monopolies are considered illegal.
  • Oh Really ? And who says that ?
  • And basically what you're doing is controlling the price for us consumers only because you know you're the only shoe lacing company around.  So that's illegal buddy.
  • Uhhh, oh right, well, I guess I gotta go !
  • DUDE, we're in so much trouble.
  • Uhoh......
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