Mergers and the Clayton Act

By David Dale Martin | Go to book overview

3. Federal Trade Commission Administration of Section 7 Prior to Judicial Interpretation

In addition to administration by the Justice Department, the Clayton Act provided in Section 11 for administration of Sections 2, 3, 7, and 8 by the Federal Trade Commission for violations by any corporations engaged in interstate commerce, other than those corporations subject to the jurisdiction of the Interstate Commerce Commission or the Federal Reserve Board. It set forth the general procedures to be followed and the powers available to the Federal Trade Commission for enforcing these sections of the Clayton Act1

Section 11 provided that the commission should serve notice on a party complained of, if it believed that a violation of the section had occurred. After a hearing, the commission was empowered to order divestiture of illegally held stock if it found a violation of the law. The respondent was given the right to appeal the order to a Circuit Court of Appeals. If the respondent failed to comply with the order of the commission, then the commission could appeal to a circuit court. In either instance, the court was given the authority to review the order of the commission. Section 11 provided that the court had to uphold the findings of fact

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1
For the text of Section 11 of the Clayton Act, see appendix.

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