Paralegal Advanced Competency Exam (PACE) Practice Exam

What is the primary purpose of antitrust acts?

1. To promote commerce through unrestricted trade

2. To protect trade and commerce from unlawful practices

3. To regulate the prices of commodities

4. To ensure fair wages for workers

The correct answer is: To protect trade and commerce from unlawful practices

The primary purpose of antitrust acts is to protect trade and commerce from unlawful practices that hinder competition. These laws are designed to prevent monopolistic behaviors and unfair business practices that could exploit consumers or eliminate competition. For example, antitrust legislation addresses issues such as price-fixing, market allocation, and monopolistic mergers that can stifle competition and harm consumers by limiting their choices and increasing prices. The focus of antitrust regulation is to ensure that the marketplace operates fairly, allowing businesses to compete on their merits instead of through illicit or unethical business practices. By fostering a competitive environment, antitrust laws aim to enhance consumer welfare, promote innovation, and ensure that a variety of choices are available in the market. Other options provided do not accurately capture the essence of antitrust laws; for instance, while promoting commerce through unrestricted trade may seem beneficial, antitrust laws specifically target restrictions that undermine genuine competitive opportunities. Similarly, regulating prices of commodities and ensuring fair wages are not the direct objectives of antitrust legislation but rather fall under different areas of economic regulation and labor law.