Sherman Act Legal Meaning and Definition

Here is a simplified definition of the legal term Sherman Act.

Sherman Act (noun)

The Sherman Act is a federal law in the United States that was enacted in 1890. Designed to prevent businesses from working together to control market prices, it promotes fair competition and discourages what are known as "anticompetitive" business practices, such as price fixing or monopoly creation. Violation of this act is considered a serious offense and can result in large fines.