West Virginia MPJE (Pharmacy Jurisprudence) Practice Exam

Which act attempted to outlaw monopolies that blocked competition through nefarious methods like price-fixing and deceptive marketing practices?

1. Food, Drug, and Cosmetic Act

2. Pure Food and Drug Act

3. Sherman Antitrust Act of 1890

4. Controlled Substances Act

The correct answer is: Sherman Antitrust Act of 1890

The Sherman Antitrust Act of 1890 was specifically designed to address and prohibit monopolistic practices that hindered fair competition in the marketplace. This landmark legislation made it unlawful for companies to engage in activities such as price-fixing, which occurs when businesses collaborate to set prices at a certain level rather than letting market forces determine them. The Act aimed to maintain free competition by targeting practices that could manipulate the market to the detriment of consumers and other businesses. The other acts mentioned focus on different aspects. The Food, Drug, and Cosmetic Act regulates the safety and efficacy of food and drugs, ensuring that products are safe for consumption. The Pure Food and Drug Act primarily sought to eliminate mislabeled and adulterated foods and medications, laying the groundwork for consumer protection but not specifically addressing monopolies. The Controlled Substances Act governs the regulation of narcotics and other drugs, focusing on drug scheduling and control rather than competition law. Therefore, the Sherman Antitrust Act stands out as the most relevant legislation in terms of outlawing monopolistic behaviors.