Project: Working Hard In Florida — Unit test

Question 53 • FL-2100310-United States History A

How did the case United States v. E.C. Knight weaken the Sherman Antitrust Act?

Answer

The Supreme Court ruled that the American Sugar Company was a legal monopoly since it existed only in one state.

The Supreme Court ruled that the American Sugar Company was a legal monopoly since it operated in several states.

The Supreme Court ruled in favor of the American Sugar Company since it controlled only fifty percent of the sugar-refining factories.

The Supreme Court ruled against the American Sugar Company since it controlled ninety-eight percent of the sugar-refining factories.

Explanation

In United States v. E.C. Knight (1895), the Supreme Court held that the Sherman Antitrust Act did not apply because sugar refining was manufacturing, not interstate commerce. The Court treated the American Sugar Refining Company’s control of nearly all sugar refining as a monopoly within a state, beyond the act’s reach. This weakened the law by limiting its use against monopolies in manufacturing. Choice A best reflects the ruling, though “legal monopoly” is an imprecise way to describe the Court’s reasoning.

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