Which of the following is not prohibited by the Clayton Act, even if it reduces competition?
A)merger accomplished through the acquisition of another firm's stock
B)merger accomplished through the acquisition of another firm's assets
C)price discrimination that cannot be justified on the basis of cost differences
D)exclusive dealing contracts
E)interlocking directorates

Question

Quizplus · Accepted Answer

The Clayton Act does not prohibit mergers accomplished through the acquisition of another firm's assets. However, if such a merger is likely to substantially lessen competition, it may be challenged under the antitrust laws. The other options listed are all practices that are scrutinized by the Clayton Act, and some are only legal if certain conditions are met (such as exclusive dealing contracts being lawful as long as they do not substantially lessen competition).

Which of the Following Is Not Prohibited by the Clayton