What is the purpose of a Hot-Cargo Agreement as banned by the Wagner Act?

Prepare for the Associate Contractors License Exam. Study using flashcards and multiple choice questions, each question is equipped with hints and explanations. Get exam-ready today!

The purpose of a Hot-Cargo Agreement, which is banned by the Wagner Act, is to disallow agreements that restrict handling of certain products. These agreements typically involve a union's authority to refuse to work with a particular product or company as a means of leverage in labor disputes. Such restrictions can lead to secondary boycotts, where workers refuse to handle goods that are in dispute, impacting other businesses not directly involved but linked through the supply chain.

The Wagner Act aimed to protect the rights of workers and to ensure fair labor practices without hindering free trade. By prohibiting Hot-Cargo Agreements, the Act seeks to maintain the flow of goods and commerce while also protecting the rights of workers to engage in collective bargaining. Thus, the correct answer highlights the law's intent to support a broader economic environment free from restrictive practices that could hamper competition and negotiation.

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