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good order.” It’s not that simple and law in the United States is complex, and the complexity is in the
rules themselves. Other times it is in their underlying policies or the motivations of politicians involved in
creating the laws. Select a current event or topic and examine it in relation to Aristotle’s observation
that “law is order, and good law is good order.”
Chosen topic: Applying antitrust laws such as the Sherman Antitrust Act to modern companies such as
Amazon, Facebook, or others etc. because they are becoming too powerful?
TITLE PAGE
Standard Oil and antitrust law: An Aristotelian view
In the holding of ancient Greek theorist Aristotle (384-322 B.C.E), the concept of “law”
is a form of order, providing an extensive set of norms and establishments by which the society
in that society, since the law applies to all parts of the society regardless of that person’s
economic or social stature. Aristotle was also the first philosopher to expound on the “rule of
law.” A common perception among the Greeks at the time; the law was a tool to restrain political
excesses. In this light, Aristotle was saying that if one were to demand for the “rule of law,” then
these are asking for Divine wisdom and dominion in that society, not human dominion (Leiter).
However, Aristotle seemed to discussing an uncodified natural system. There is a legal regime
that applies to all men everywhere and in all settings (Leyden 3). It can be thus stated that laws
are general statutes that create a form of order in the actions of society’s members which are
created in a logical and reasonable manner by the lawmaker. It can be stated that laws are rules
that ban certain actions; the universal nature of laws allows the ordinary citizen to learn the intent
of the law without the ambiguity attendant to the legal standard of the society (Law Explorer).
Aristotle posits that humans cannot ascend to any higher form of being, but in the context
of the law, humans can become like the worst of beasts. Aristotle argues that when man obeys
the tenet of the law, these can exhibit the best of humanity; outside the application of the law,
these can become the worst of beasts. Aristotle argues that humans are wretched and that this
depravity can be addressed by educating the person of the requirements of the law to guide them
away from their wretchedness. Simply put, laws, or the awareness of these laws, allows the
citizens of the society to acquiesce to the requirements and norms set down by that society. For
example, the law ‘educates’ citizens of their duties to pay taxes, follow regulations and
ordinances, and other needs. To sustain the operation of the society, people must be educated on
the need to follow all of its laws and rules to ensure the “supremacy of the law” in that society.
In this light, if one party breaks the law, it is contributing to destabilizing the “rule of law” that
Distortions of the law tend to create that instability in that society. In Standard Oil
Company of New Jersey v United States, 221 U.S. 1 (1911), the U.S. government won their case
against Standard Oil for violating the 1890 Sherman Antitrust Act, 26 Stat. 209, 15 U.S.C. §§ 1–
7. Though Standard lost in their case, Chief Justice Edward White, in penning the majority
decision, was able to change the language of the law in that the applicability of the law must only
apply to capricious contracts and other documents that would effectively strangle competition.
Thus, given that the Standard oil trust effectively restrained trade, it was deemed legally
The largest component of John Rockefeller and his associates’ business conglomerate, the
trust operated as a virtual monopoly from 1870 to 1911, working as a cartel that dominated the
nation’s oil sector from its production to transportation. Merging with Maurice Clark, Samuel
Andrews and Henry Flagler, the group formed the largest oil refinery facility in Cleveland,
which was eventually incorporated as the Standard Oil Company in 1870. A decade later, by
decimating its competition, mergers, and railroad incentives, the company monopolized pol
production in the United States. Two years later, the company was forged together as a cartel
created by the Standard Oil Trust Agreement. In the end, the trust managed 40 corporations.
Critics of the trust held that the monopoly exercised too much political and economic influence
that can destabilize commerce in the country. In 1906, the government sued Standard oil under
the tenets of the Sherman law. The Court ruled against Standard and was ordered to dismantle
The remedy prescribed in the ruling was tow-pronged in its approach. The first mandated
the discontinuance of the prohibited actions and to dismantle the assailed combination to
abrogate the power of the illegal arrangement. However, the parties in the law must be allowed
to conclude legal contracts but must be barred from reacquiring the contested power in the future
(Justia). The phrases “restraint of trade” and “attempts to monopolize” within the context of
Sherman were derived in common law. The original canon that all agreements that restricted
commerce were in violation of the law was extensive. With this perception, it was revised to
reflect the canon that the agreement was legitimate if the produced limitation was not integral to
its operation and was judicious. Under common law, trusts were considered illegal owing to their
innate restraint on “individual freedom of contract” and their capacity to inflict harms on the
public and towards common law doctrine. Accords that also generated these ‘evils’ were also
included in the ban since these will work towards the restraint of commerce and competition
(Justia). The Standard Oil trust stifled competition in the oil sector by forging the nation’s
biggest oil company and rejected government efforts to illegalize contortions of the law that will
bring the same effect. In the early 1900s, a federal court ruled against Standard Oil, holding that
the company violated the Sherman Anti-Trust Act. Given this ruling, it ordered that the monopoly
be dissolved (Standard).
United States Business Law (Antitrust Laws)
In the United States, antitrust laws were established to ensure that businesses are
prevented from engaging in acts that would go against the spirit of competition in business.
There are different anti-competitive activities that businesses engage in, and these prevent fair
competition in the industries in which the businesses operate. Some of the anticompetitive
activities could include hostile takeover, price-fixing, and market segmentation, among others.
The United States developed legislation aimed at ensuring that businesses are prevented from
engaging in these activities. The antitrust laws can be applied to any business within the United
States that is deemed to be engaging in activities that are considered anti-competitive. It would
be important that the government applies these laws in private businesses when there is evidence
that the business is disrupting the market and effectively becoming a monopoly.
There are businesses that have substantially dominated the American market because of
the position they have taken within their industries. Specifically, businesses in the technology
industry have been seen to engage in practices that effectively eliminate fair competition within
the markets. In recent reports, it has been noted that major technology corporations are bearing
significant amounts of monopoly power, preventing startups and small companies in the industry
from competing effectively (Rogoff). The companies have, in some cases, arm twisted smaller
competitors or startups into selling their businesses to the major corporations. As a result of their
dominance, these companies have disrupted the market and ensured that they enjoy monopoly
powers. It is when businesses get to this point that the United States government should apply
the antitrust laws to the private businesses operating within the country.
getting too powerful. It is essential to note that major and modern-day companies such as
Amazon are becoming dominant in the markets where they operate. This is based on the fact that
these companies have significantly relied on convenience and reduced prices to establish
having complete control of the supply of services or goods in a specific market or area (). This
means that the company has the capacity to destroy all competition and dictate prices in that area
of the market. Modern-day companies such as Amazon have become significantly dominant in
their markets. Amazon, for instance, has ensured that most businesses join forces with it, as
opposed to attempting to compete with it (Faherty et al. 9). This is because of the fact that the
company has established a number of barriers to market entry, making it difficult for businesses
business standards that prevent others from easily competing with them. It is essential to
understand that most of the major corporations such as Amazon have been involved in the
development of private label brands. Specifically, major players in the e-commerce industry have
been seen to actively disrupt the market through the use of quality and price. The companies
have often offered low prices to their consumers, making startups and small businesses less
competitive. It should be noted that one of the central characteristics of monopolies or anti-
competitiveness is that of price-fixing (Capobianco 31). This involves the company developing
platforms that dictate the prices by working with retailers to set specific prices that are lower
Based on the above, it would be important that the Government of the United States
apply the antitrust laws on these companies as it was done in the case of Standard Oil Co. In the
case of Standard Oil, the monopoly became significantly strong and raised concerns over the
possibility of influencing political and economic factors in the country. This is one of the most
important reasons why the United States should apply the laws in the case of modern companies.
There is a need for the government to exercise control over the political and economic influence
of companies. This is because a disruption in the two fields could significantly impact the
position of the United States in global economy and politics. As such, it would be critical for the
However, the most important reasons why antitrust laws should be applied to modern
companies are to ensure that the market is opened up to the fair competition. There is a need to
understand that fair competition is critical to business growth, which effectively translates to
economic development. Small businesses and startups provide important opportunities for
employment to individuals in the United States. The reduced rates of employment are critical
indicators of economic growth. In applying these laws, the government will effectively
accomplish its legal responsibility for ensuring that fair competition is promoted within the
different industries. In addition to that, applying these laws to modern businesses will be vital in
ensuring that an environment is established in which small businesses and startups can thrive,
grow, and become effectively competitive in the market. It is on this basis that it would be
important for the Government of the United States to apply antitrust laws to modern companies.
Works Cited
2021
Leyden, Wolfgang, “Aristotle and the concept of law” The Journal of the Royal Institute of
Faherty, Emily, Kevin Huang, and Robert Land. "The Amazon Monopoly: Is Amazon’s Private
Rogoff, Kenneth. "Big Tech Has Too Much Monopoly Power – It's Right To Take It On |
https://www.theguardian.com/technology/2019/apr/02/big-tech-monopoly-power-