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 ?
in restraint of trade" to codify the common law of contracts would purport to ban entire categories of agreement over which Congress possessed no authority in the first place.
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.
Using this broad interpretation of Endurance's "based upon or arising out of" policy language, the 1st Circuit found that the exclusion applied even to those claims that did not specifically mention restraint of trade. "It can hardly be disputed that the factual allegations of the [complaint] allege a conspiracy to fore-stall competition through misuse of legal proceedings and through deception," Judge Michael Boudin wrote in his opinion.
In determining if an action constituted a conspiracy to commit an action that resulted in a restraint of trade, Borges pointed to four elements that must exist: (1) there must be knowledge of all the parities; (2) a common purpose; (3) an actual restraint of trade; and (4) intent to restrain trade.
He filed a lawsuit against the hospital for restraint of trade.
However, FIFA President Sepp Blatter and UEFA's Lennart Johansson said after their London meeting with Mr Blair that the Prime Minister had offered them crucial political support in the bitter fight with the Commission over transfers.The Commission had said the transfer-fee system was a restraint of trade under Single-Market regulations and threatened to scrap it.
Such agreements could have the effect of inhibiting competition or otherwise restraining trade; combinations or conspiracies in restraint of trade are prohibited.
That in turn can lead to what the report terms "restraint of trade" seemingly randomly doled out: "The goal posts move back and forth with neither warning nor explanation in an apparently capricious manner."
Dallas-based Longhorn Partners Pipeline has filed a lawsuit against New Mexico's Navajo Refining Company and its lawyers in state district court in El Paso, Texas, alleging restraint of trade.
Lawyers for Microsoft argued in late August that Gates' depositions in the landmark antitrust case, charging the behemoth with restraint of trade, should be kept secret.
But we vigorously dispute what they're trying to do and don't think it is an issue involving restraint of trade or competition.
Grace & Co., its major competitor in mining vermiculite, for restraint of trade under the Sherman Antitrust Act.