US v. EC Knight Flashcards

Questions and Answers

What did Congress enact in 1890?

The Sherman Antitrust Act

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?

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?

98 percent monopoly Signup and view all the answers

What did the government do to the EC Knight Company to try to suppress the transaction?

The government sued EC Knight Signup and view all the answers

Why did the government sue EC Knight?

For violating the anti-monopoly provisions of the Sherman Antitrust Act Signup and view all the answers

What is the issue of the case?

Does the Sherman Antitrust Act passed by Congress overstep the authority given by the Commerce Clause? Signup and view all the answers

What was the decision of the case?

Yes, 8-1 vote Signup and view all the answers

What was the reasoning for the decision?

The court ruled that refining was a local activity not subject to congressional regulation of interstate commerce. Signup and view all the answers

Who wrote the dissent?

Justice Harlan Signup and view all the answers

What was the reasoning for the dissent?

He said 'the doctrine of the autonomy of the states cannot properly be invoked to justify a denial of power in the government to meet such an emergency.' Signup and view all the answers

What previous case did Harlan refer back to?

McCulloch v. Maryland Signup and view all the answers

What year was this case in?

1895 Signup and view all the answers

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.

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.