Elkins Act: A Comprehensive Guide to Its Legal Definition and Effects

Definition & Meaning

The Elkins Act, enacted in 1903, is a federal law in the United States that aims to regulate railroad companies and eliminate unfair business practices. As an amendment to the Interstate Commerce Act of 1887, this statute specifically targets the practice of offering rebates, which are discounts or refunds given to shippers by railroads. The Elkins Act imposes significant penalties on both railroads that provide these rebates and on the shippers who accept them, thereby working to ensure fair competition in the transportation industry.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A railroad company offers a rebate to a large shipping company to secure their business. Under the Elkins Act, both the railroad and the shipping company may face fines for engaging in this practice.

Example 2: A small business that relies on shipping goods via rail discovers that a competitor has received secret rebates from a railroad company, leading to an unfair pricing advantage. The small business may report this violation under the Elkins Act. (hypothetical example)

Comparison with related terms

Term Description Difference
Interstate Commerce Act A law that regulates railroad rates and practices. The Elkins Act is an amendment that specifically addresses rebates.
Sherman Antitrust Act A law aimed at preventing monopolies and promoting competition. The Elkins Act focuses on specific practices within the railroad industry.

What to do if this term applies to you

If you suspect that you or your business is affected by unfair practices related to railroad rebates, consider the following steps:

  • Document any evidence of rebate practices.
  • Consult with a legal professional to understand your rights and options.
  • Explore US Legal Forms for templates related to reporting unfair business practices.

Quick facts

  • Year Enacted: 1903
  • Primary Focus: Unfair business practices in railroads
  • Penalties: Heavy fines for railroads and shippers
  • Related Laws: Interstate Commerce Act, Sherman Antitrust Act

Key takeaways