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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.

Employee and Labor Relations

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)
  • A
    74% (35)
  • B
    13% (6)
  • C
    9% (4)
  • D
    4% (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.

AThe Clayton ActCorrect

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.

BThe Railway Labor Act

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.

CThe National Labor Relations 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.

DThe National Industrial Recovery Act

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

Topics

#Clayton Act#Sherman Antitrust Act#labor unions#labor legislation

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