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Vertical Agreements

Learn about agreements between manufacturers and distributors.

Transcript

In this lesson, we’ll learn about restrictive agreements between manufacturers and distributors.

I.              Vertical Agreements

Section 1 of the Sherman Act prohibits conspiracies in restraint of trade, which provides the basis for the prohibition on horizontal restraints of trade. But Sherman Act § 1 doesn’t prohibit just horizontal conspiracies between competitors; it also encompasses restraints of trade that arise between...