Week 3 Research Paper
DeVry University

The United States has several laws that are intended to further fair, balanced, and competitive business practices. Do you think that such laws are effective? If so, why? If not, why not? Be sure to provide evidence to support your position one way or the other.
Before the late 1800’s there were no laws to protect consumers and the process of competition. Often times, the consumers and the well being of all were not taken into consideration before these antitrust laws were put into act. The business owners were more often than less, only looking to make a profit no matter what that took. Thankfully, in 1890 Congress passed the first antitrust law, the Sherman Act as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.” This law states that, “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.” (www.ourdocuments.gov/, 2014) A law designed to restore competition and free enterprise by breaking up monopolies. The original intention of the Sherman Antitrust Act was to protect consumers from big businesses that were using unscrupulous means to raise prices artificially, such as intentionally producing too few goods to meet consumer demand and thereby driving up the products' value and price. (www.ftc.gov, 2014)
Since then there have been other antitrust laws put into act such as, in 1914 when Congress passed an additional two antitrust laws called the Federal Trade Commission Act which created the FTC, and the Clayton Act. The Federal Trade Commission Act established a government commission aimed at preventing unfair and anti-competitive business practices. The 2014FDIC Compliance Manual States that, “To prevent business practices that are anticompetitive or deceptive or unfair to consumers; to enhance informed consumer choice and public understanding of the competitive process; and to accomplish this without unduly burdening legitimate business activity.” (https://www.fdic.gov, 2014) When the Clayton Antitrust Act was put into law it defined more clearly what constituted illegal restraint of trade. These laws are still in effect today and if it were not for them, then more than likely we would not have the strong business foundation that we do in the United States, as well as the protection of consumers and business owners. (www.ftc.gov, 2014) The antitrust laws proscribe unlawful mergers and from business practices. These laws are generally effective as control measures to ensure fair business practices are followed. Yet they have had about the same approach and objective since the time they originated. Determining the success or failure of specific legislation or regulations can be relative to what angle you are looking from. There objective has been to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up. (www.ftc.gov, 2014) If these laws and guidelines are not followed then the penalties can be severe such as being prosecuted and serving time for up to ten years. This ensures that we the people and as business owners have a fair equality. If it was not for these laws put into act I believe that we would not be the nation that we are today, as well as the consumers would more than likely not get treated fairly. With these anti-trust laws we are insured safeness from unreasonable trade, price discrimination, and unfair and anti-competitive business practice. (http://www.sba.gov/, 2014) Many more laws and regulations have been enacted since the 1930s to protect workers and consumers further. It is against the law for employers to discriminate in hiring on the basis of age, sex, race, or religious belief. Child labor generally is prohibited. Independent labor unions are guaranteed the right to organize, bargain, and strike. All these laws are put in place to help keep everyone safe and protected. I believe that these laws that are put into act are extremely effective here in the United States, it is what helps make us the strong business country that we are. More often than less, for the most part people abide by these sets of guidelines. I feel as though that people do not want to go against the laws and risk the huge amount of consequences that come from not listening. (https://www.fdic.gov, VII. Abusive Practices — Federal Trade Commission Act, 2014) It is not always easy to define when a violation of antitrust laws occurs. Interpretations of the laws have varied, and analysts often disagree in assessing whether companies have gained so much power that they can interfere with the workings of the market. It can be hard to see through a black and white perspective when it seems as though it has blurred grey in the middle. But it is very important for us, and the analyst to keep an eye on what is taking place and prevent from companies from becoming too big and powerful. By having a company that is too powerful, it can completely overpower and destroy other competitors, which ultimately can bring the business economy down, especially for mom and pop type shops. That is not what we want, and that is why we should be grateful for some of the acts that have been put into place In order to protect us, the consumer, as well as the market. (www.ourdocuments.gov/, 2014) One particular company that plays with these laws is Wal-Mart. Wal-Mart has many stores throughout the country and for many people it is the only store that has what they need. It is the one stop shop for many people in the Midwest. They have taken over towns and cities promising to not harm small shops and to give back to the people and it communities. Wal-Mart is using the antitrust law in in Europe so that they can be in Europe and be that Monopoly. So with that being said Wal-Mart is one of the businesses that is very familiar with such laws. By having this company follow these strict guidelines and regulations ensure us the people, that there will be fair opportunities for all. By not having these antitrust laws established businesses such as Wal-Mart would destroy and crush all the competition, which ultimately would bring our economy down. (Lynn, 2006) The US Department of Justice says, “Effective antitrust enforcement requires public support. Public ignorance and apathy can weaken antitrust enforcement more than anything else. Whether you are a businessperson or a consumer, if you encounter business behavior that appears to violate the antitrust laws you should contact the enforcement authorities.” That is why we the people, have to make a conscious effort to be aware of what is taking place in our business industry. Such as the US department stated if people are ignorant and not doing what they should be doing as individuals in this country, then we will weaken and unfortunately tear down our antitrust enforcement. What's more, conditions change, and corporate arrangements that appear to pose antitrust threats in one era may appear less threatening in another. (Justice, 2014) Whether consumers are shopping for food at the grocery store, buying a car, or downloading new software from the Internet, antitrust laws play an important role in ensuring that people have the benefit of competitive prices and high quality goods and services. The antitrust laws accomplish these goals by promoting and fostering competition in the marketplace and preventing anticompetitive mergers and business practices. This ensures that we are all being treated fair and equally to help maintain the health and upbringing of our economy.

Reference Page
Price Fixing, Bid Rigging and Market Allocation Schemes. (2014, January 1). Retrieved November 10, 2014, from http://www.justice.gov/atr/public/guidelines/211578.htm

Breaking the Chain | New America Archives. (2006, July 1). Retrieved November 10, 2014, from http://newamerica.net/node/7962

Understanding Fair Practice. (2014, January 1). Retrieved November 10, 2014, from http://www.sba.gov/content/understanding-fair-practice

Federal Deposit Insurance Corporation. (2014, January 1). Retrieved November 10, 2014, from https://www.fdic.gov/regulations/compliance/manual/

VII. Abusive Practices — Federal Trade Commission Act. (2014, January 1). Retrieved November 10, 2014, from https://www.fdic.gov/regulations/compliance/manual/pdf/VII-1.1.pdf

The Antitrust Laws. (2014, January 1). Retrieved November 10, 2014, from http://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws