Restraint of Trade


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Restraint of Trade

Contracts or combinations that tend, or are designed, to eliminate or stifle competition, create a Monopoly, artificially maintain prices, or otherwise hamper or obstruct the course of trade as it would be carried on if it were left to the control of natural economic forces.

As used in the Sherman Anti-Trust Act (15 U.S.C.A. § 1 et seq.), unreasonable restraints of trade are illegal per se and interfere with free competition in business and commercial transactions. Such restraint tends to restrict production, affect prices, or otherwise control the market to the detriment of purchasers or consumers of goods and services. A restraint of trade that is ordinarily reasonable can be rendered unreasonable if it is accompanied by a Specific Intent to achieve the equivalent of a forbidden restraint.

Cross-references

Antitrust Law; Combination in Restraint of Trade.

restraint of trade

n. in anti-trust law, any activity (including agreements among competitors or companies doing business with each other) which tends to limit trade, sales and transportation in interstate commerce or has a substantial impact on interstate commerce. Most of these actions are illegal under the various anti-trust statutes. Some state laws also outlaw local restraints on competitive business activity. (See: monopoly, trust)

References in periodicals archive ?
105) That common law, the Court determined, came to equate "monopoly" with practices, including contracts in restraint of trade that, while not resulting in domination of an entire market, still produced the consequences of monopoly, particularly the enhancement of prices.
This article reconsiders the narrative on the Anti-Combines Act from the perspective of a legal historian, arguing that it was not at its inception the failure that existing scholarship has generally presented it to be, but that it failed only as a result of subsequent revision of the restraint of trade doctrine made by formalistic, laissez-faire judges of late nineteenth-century Britain.
But we vigorously dispute what they're trying to do and don't think it is an issue involving restraint of trade or competition.
Complaints of favoritism, restraint of trade, and poor choices may be lodged.
In 1890, the Sherman Antitrust Act prohibited pools, trusts, and other business combinations deemed in restraint of trade.
com) announced the filing today, 7/14/2006, in the Eastern District of New York a Complaint, DOCKET # 06 CV 3447, against 16 Major US Pharmaceutical Manufacturers, 3 of the largest Drug Wholesalers in the United States, and other persons and entities for alleged violations of various provisions of the United States Anti-trust laws, New York State Donnelly law violations, restraint of trade, illegal boycott, and (against some of the defendants) violations of the Federal RICO statutes and Federal Securities' laws and regulations.
Bangayan is facing a complaint for monopolies and combinations in restraint of trade under Article 186 of the Revised Penal Code (RPC); bid fixing, as penalized under Section 65 of Republic Act No.
It was reported that Vodacom sought to impose the terms of Motsa's contract which included a six-month notice period and a restraint of trade for an additional six months.
Many employment agreements contain restraint of trade clauses, but often employers and employees are uncertain about whether the terms are actually enforceable.
Radcliffe last night slammed a Swiss court's judgement that the refusal of top athletics meetings to invite drug cheats is a restraint of trade.
Simply, the home board does not have any jurisdiction over the player, and if it refuses to grant a NOC, then we believe that board may face legal action for an unreasonable restraint of trade," he added.
IT is baffling that any restriction was placed on the operation of the new Liverpool landing stage as a cruise terminal in the first place; such a restriction seems to me to be a contract in restraint of trade and therefore of questionable legality.