PHR · Question #26
As an HR Professional you must recognize, and be aware of several pieces of legislation that affects your performance as an HR Professional.Which one of the following acts exempted labor unions and…
The correct answer is A. The Clayton Act. The Clayton Act of 1914 explicitly exempted labor unions and agricultural organizations from the Sherman Antitrust Act, ending the use of antitrust law to prosecute union activity as illegal restraint of trade.
Question
As an HR Professional you must recognize, and be aware of several pieces of legislation that affects your performance as an HR Professional.Which one of the following acts exempted labor unions and agricultural organizations from The Sherman Antitrust Act?
Options
- AThe Clayton Act
- BThe Railway Labor Act
- CThe National Labor Relations Act
- DThe National Industrial Recovery Act
How the community answered
(47 responses)- A74% (35)
- B13% (6)
- C9% (4)
- D4% (2)
Why each option
The Clayton Act of 1914 explicitly exempted labor unions and agricultural organizations from the Sherman Antitrust Act, ending the use of antitrust law to prosecute union activity as illegal restraint of trade.
Sections 6 and 20 of the Clayton Act (1914) declare that labor organizations are not illegal combinations or conspiracies in restraint of trade under federal antitrust law, directly exempting them from the Sherman Antitrust Act of 1890. This was a landmark labor protection that stopped courts from issuing antitrust injunctions against strikes and union organizing. Agricultural organizations received the same exemption under the same legislation.
The Railway Labor Act (1926) governs collective bargaining rights for railroad and airline employees but does not contain provisions exempting labor unions from the Sherman Antitrust Act.
The National Labor Relations Act (1935) established workers' rights to organize and created the NLRB, but the antitrust exemption for unions had already been established by the Clayton Act more than 20 years earlier.
The National Industrial Recovery Act (1933) recognized workers' rights to organize and set industry codes, but it did not provide the specific antitrust exemption for labor and agricultural organizations.
Concept tested: Clayton Act labor union antitrust exemption
Source: https://www.ftc.gov/legal-library/browse/statutes/clayton-act
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