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The Rule of Reason

Learn about the case-by-case reasonableness evaluation of restrictive conduct.

Transcript

In this lesson, we’ll learn about the case-by-case reasonableness evaluation of restrictive conduct. 

I.               The Rule of Reason

Since the earliest days of federal antirust jurisprudence, the U.S. Supreme Court has interpreted the Sherman Act to prohibit only unreasonable restraints on trade. That means there’s a rule of reason in which courts, in deciding whether horizontal conduct violates § 1 of the Sherman...