Certification in Supplier Diversity Practice Exam

Which act specifically prohibits conditioning the purchase of one good on the purchase of another?

1. Sherman Antitrust Act

2. Clayton Act

3. Robinson-Patman Act

4. Federal Trade Commission Act

The correct answer is: Clayton Act

The Clayton Act specifically addresses practices that may harm competition, including tying arrangements, where a buyer is forced to purchase one product in order to obtain another. This act was designed to promote fair competition and prevent unfair trade practices that could lead to monopolistic behaviors. By prohibiting the conditioning of the purchase of one good on the purchase of another, the Clayton Act aims to ensure that all suppliers have a fair chance to compete in the market without being pressured or coerced into bundling products. In contrast, the other acts listed focus on different aspects of competition and trade practices. For instance, the Sherman Antitrust Act primarily addresses anticompetitive agreements and monopolies, while the Robinson-Patman Act is specifically concerned with price discrimination among competing retailers. The Federal Trade Commission Act covers a broader range of unfair or deceptive acts in commerce but does not specifically tackle the issue of tying arrangements like the Clayton Act does. Thus, the Clayton Act is the correct answer for this scenario regarding the prohibition of conditioning goods purchases.