Section 1 of the Sherman Act (Section 1) | Practical Law

Section 1 of the Sherman Act (Section 1) | Practical Law

Section 1 of the Sherman Act (Section 1)

Section 1 of the Sherman Act (Section 1)

Practical Law Glossary Item 9-502-0833 (Approx. 3 pages)

Glossary

Section 1 of the Sherman Act (Section 1)

This section of the Sherman Act prohibits agreements between two or more individuals or independent entities that unreasonably restrain trade (15 U.S.C. § 1). Section 1 also regulates foreign entities doing business abroad if the business sufficiently affects US consumers. A violation of Section 1 may result in civil penalties of up to $100 million for corporations or $1 million for individuals, and criminal penalties of up to ten years. The Department of Justice (DOJ) has authority to enforce both civil and criminal violations. Civil actions for damages may be brought by both private individuals and the state attorneys general on behalf of state residents.