The 1982 act passed by Congress in order to clarify the standard to be applied in determining the extraterritorial effect of American antitrust law provides that:
A) American antitrust law extends to all countries that do not have enforceable antitrust laws of their own.
B) American antitrust law does not apply outside the U.S.
C) American antitrust law applies only to conduct that has a direct, substantial, foreseeable effect on U.S. commerce.
D) American antitrust law applies only to firms whose economic power is so substantial that they could directly and significantly dominate foreign markets.

Question

Quizplus · Accepted Answer

The 1982 Act passed by Congress established the Foreign Trade Antitrust Improvements Act (FTAIA), which clarified that American antitrust law applies only to conduct that has a direct, substantial, and foreseeable effect on U.S. commerce. Therefore, option C is the correct answer. Options A, B, and D are incorrect as they contradict the provisions of the FTAIA. Option A is incorrect because American antitrust law does not extend to all countries that do not have enforceable antitrust laws. Option B is incorrect because American antitrust law does apply outside the United States in certain circumstances. Option D is incorrect because American antitrust law does not apply only to firms whose economic power is so substantial that they could directly and significantly dominate foreign markets.

The 1982 Act Passed by Congress in Order to Clarify