Identify and discuss the various laws that govern joint ventures and competition. Why are these laws needed still in today's world and how do they comply or interact with the Sarbanes-Oxley Act?
Known sometimes as the Magna Charta of the American economy, the Antitrust laws as developed by Congress consist of the Sherman Act, the Clayton Act and the Federal Trade Commission Act (FTC, n.d., Para 1). Developed to control competitive practices among businesses in such that monopolization is minimized and to cease illegal mergers and consolidations, to name a few; the antitrust laws have evolved throughout history while still maintaining the same objective: "to protect the process of competition for the benefits of consumers, making sure there are strong incentives for businesses to operation efficiently, keep prices down and keep equality up" (FTC, n.d., Para 2). While competition is needed in order for businesses to improve and for consumers to have bargaining power hence lower prices to pay among varying sellers (Fair Fight, n.d., Para 2), concentrated economic power in the form of a monopoly would still exist if the Antitrust Laws were not the watchdogs overseeing business practices. In fact, in the 1800s when monopolies were highly prevalent resulting in price controls and depressed economic growth, Congress passed the Sherman Act in order to suppress the dominating monopolies and facilitate the movement towards a free market ...
This piece describes the various laws such as the Sherman Act and Clayton Act that govern joint ventures and competition and states how the laws still currently comply with the Sarbanes-Oxley Act. The discussion also points out why the laws are needed in order to provide structure to the business industry.