Appendix B. Clayton Act

• Pages: 487-495

487

APPENDIX B

CLAYTON ACT

Section 7

No person engaged in commerce or in any activity affecting

commerce shall acquire, directly or indirectly, the whole or any part of

the stock or other share capital and no person subject to the jurisdiction

of the Federal Trade Commission shall acquire the whole or any part of

the assets of another person engaged also in commerce or in any activity

affecting commerce, where in any line of commerce or in any activity

affecting commerce in any section of the country, the effect of such

acquisition may be substantially to lessen competition, or to tend to

create a monopoly.

No person shall acquire, directly or indirectly, the whole or any part

of the stock or other share capital and no person subject to the

jurisdiction of the Federal Trade Commission shall acquire the whole or

any part of the assets of one or more persons engaged in commerce or in

any activity affecting commerce, where in any line of commerce or in

any activity affecting commerce in any section of the country, the effect

of such acquisition, of such stocks or assets, or of the use of such stock

by the voting or granting of proxies or otherwise, may be substantially to

lessen competition, or to tend to create a monopoly.

This section shall not apply to persons purchasing such stock solely

for investment and not using the same by voting or otherwise to bring

about, or in attempting to bring about, the substantial lessening of

competition. Nor shall anything contained in this section prevent a

corporation engaged in commerce or in any activity affecting commerce

from causing the formation of subsidiary corporations for the actual

carrying on of their immediate lawful business, or the natural and

legitimate branches or extensions thereof, or from owning and holding

all or a part of the stock of such subsidiary corporations, when the effect

of such formation is not to substantially lessen competition.

Nor shall anything herein contained be construed to prohibit any

common carrier subject to the laws to regulate commerce from aiding in

the construction of branches or short lines so located as to become