Introductory Business Law CLEP Prep Practice Exam

What is the purpose of the Sherman Antitrust Act?

1. To protect workers from discrimination

2. To protect the environment

3. To protect small businesses from unfair competition

4. To regulate business practices to ensure fair competition

The correct answer is: To regulate business practices to ensure fair competition

The purpose of the Sherman Antitrust Act is to regulate business practices in order to promote fair competition. It was created to prevent monopolies and unfair business practices that could harm consumers and smaller businesses. Option A is incorrect because the Act primarily focuses on businesses, not workers. Option B is incorrect because the Act does not directly address environmental issues. Option C is incorrect because although the Act does aim to protect smaller businesses, its main purpose is to prevent unfair competition in general. Therefore, option D, regulating business practices for fair competition, is the best answer.