The government, both federally and in Texas, creates laws to ensure fairness in business dealings. These laws help protect you as a consumer from unscrupulous activities. They create a fair and balanced economic environment that allows for profits and growth potential for all businesses. One of the first laws the federal government put in place was the Sherman Anti-Trust Act in 1890. While this law is over 100 years old, it still has an impact on businesses today.

According to Ourdocuments.gov, the Sherman Anti-Trust Act banned the creation of a monopoly in business. It directly attacked a common practice at the time where a group of investors created a trust in which they put all their stocks from various companies. This consolidated the earnings of all the companies within this industry and put them under the control of one group of trustees. It wiped out competition, which is a required component of a healthy economy and free market.

This act was not without its issues due to a failure to define terms clearly and completely. This led to the Supreme Court almost rendering it invalid in 1895. However, it has seen use since then successfully to help prevent monopolies by Microsoft, the American Tobacco Company and the Standard Oil Company. It has a strong legacy of helping to keep free markets alive.

The Sherman Anti-Trust Act was an early attempt in anti-trust and trade regulation. However, it is still useful and applicable today in keeping the business atmosphere fair. It has helped to prevent monopoly situations and provide you with a market that provides balance and freedom. This information is for education and is not legal advice.