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Questions and Answers
What did Congress enact in 1890?
What did Congress enact in 1890?
The Sherman Antitrust Act
What did the Sherman Antitrust Act do?
What did the Sherman Antitrust Act do?
Tried to prevent monopolies or restrictive trade agreements
What happened in 1892 with the American Sugar Refining Company?
What happened in 1892 with the American Sugar Refining Company?
Gained control of the EC Knight Company and several other sugar manufacturers
What percentage of monopoly did the American Sugar Refining Company have over the sugar refining industry?
What percentage of monopoly did the American Sugar Refining Company have over the sugar refining industry?
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What did the government do to the EC Knight Company to try to suppress the transaction?
What did the government do to the EC Knight Company to try to suppress the transaction?
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Why did the government sue EC Knight?
Why did the government sue EC Knight?
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What is the issue of the case?
What is the issue of the case?
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What was the decision of the case?
What was the decision of the case?
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What was the reasoning for the decision?
What was the reasoning for the decision?
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Who wrote the dissent?
Who wrote the dissent?
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What was the reasoning for the dissent?
What was the reasoning for the dissent?
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What previous case did Harlan refer back to?
What previous case did Harlan refer back to?
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What year was this case in?
What year was this case in?
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Study Notes
Sherman Antitrust Act
- Enacted by Congress in 1890 to combat monopolies and restrictive trade practices.
American Sugar Refining Company
- Acquired control of EC Knight Company and other sugar manufacturers in 1892.
Monopoly Control
- The American Sugar Refining Company held a 98% monopoly over the sugar refining industry at the time.
Government Intervention
- The U.S. government sued EC Knight Company to prevent the monopolistic transaction.
Legal Basis for the Suit
- The lawsuit was based on allegations of violating the Sherman Antitrust Act’s anti-monopoly provisions.
Case Issue
- The central question was whether the Sherman Antitrust Act exceeded the authority granted by the Commerce Clause.
Supreme Court Decision
- The Supreme Court ruled 8-1 that the Sherman Antitrust Act did overstep its authority in this case.
Court's Reasoning
- The court determined that refining was a local activity not regulating interstate commerce, falling under state police power rather than federal jurisdiction.
Dissenting Opinion
- Justice Harlan authored the dissent, arguing against the majority's view.
Dissent's Key Arguments
- Harlan emphasized that state autonomy shouldn’t hinder federal government's power to respond to monopolistic emergencies.
- He referred to the Constitution, which gives Congress authority to enact necessary laws for regulating commerce.
Reference Case
- Harlan cited McCulloch v. Maryland to support his argument for federal power over state authority.
Case Year
- The Supreme Court decision on the EC Knight case was made in 1895.
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Description
Test your knowledge with these flashcards on the US v. EC Knight case and the Sherman Antitrust Act. Discover key facts about the legislation enacted in 1890 and its impact on monopolies. Perfect for law students and anyone interested in antitrust history.
