Restraint of Trade – The Truncated Rule of Reason and More

Referring again to this definition of Restraint of Trade, continuing to give consideration to current events;

We’ll take a look at the third court determined legal standard, the Truncated Rule of Reason. There really isn’t much there yet its importance is just as great;

“The truncated rule of reason test is used in cases where the per se test is not applicable but where nonetheless “no elaborate industry analysis is required to demonstrate the anticompetitive character” of the restraint (NCAA v. Board of Regents of the University of Oklahoma).”

I don’t want to neglect additional considerations or anti-competitive trade practices violators might engage in.

“There are two general categories of restraint of trade practices: vertical restraints and horizontal restraints. Vertical restraints occur when a company purchases or otherwise acquires control over another company that is either its supplier or customer. The controlling company is then in a position to impose various anticompetitive restraints on its former supplier or customer. Horizontal restraints deal with price-fixing agreements and are highly illegal. Similar to price-fixing agreements and likewise illegal are other practices such as “bid rigging,” boycotts, territorial impositions, and imposed minimum fee schedules.”

PayPal? Just a thought since IANAA…