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 ?
The Claim requests relief in the form of declaration of an agreement in restraint of trade, monetary compensation and a mandatory injunction to stop alleged price coordination.
Lawyers operating for the players warned again yesterday that they would bring restraint of trade suits if the cricketers are unable to take up their county contracts.
Barry questioned the whole transfer window policy, suggesting it amounted to a restraint of trade - and I'm amazed more people within the game haven't echoed his feelings.
Cole, who moved to Chelsea last month, embarked on a series of unsuccessful legal challenges including appealing to the Court of Arbitration for Sport (CAS) in Lausanne and the Office of Fair Trading claiming restraint of trade.
o ASHLEY COLE'S legal team admit it is "very likely" they will take a restraint of trade case to the Court of Arbitration for Sport after losing their appeal against his guilty verdict in the tapping-up row with Chelsea.
Cole also similarly lost his appeal against the verdict of an independent commission, with his legal team revealing that it is 'very likely' they will take a restraint of trade case to the Court of Arbitration for Sport.
They argued in court that the screener ban represented unlawful restraint of trade and the judge agreed.
In addition, as far as domestic UK law is concerned, there is competition law and restraint of trade.
Otherwise, it is restraint of trade and that is a legal matter.
In February 2005, the Arnett Clinic, a 150-physician multi-specialty clinic based in Lafayette, IN and the Arnett HMO, a 60,000 member HMO, filed an antitrust lawsuit against SSFHS and GLHS alleging restraint of trade and unfair competition.
But the judge refused to grant an injunction on the grounds that to do so would represent a restraint of trade - before Araci opted to take the matter to the Court Of Appeal.
Chambers claims the ban is equivalent to a restraint of trade and the BOA refused to comment ahead of the High Court hearing.