•  
  •  
 

Abstract

This note examines vertical restraints on trade, which involves an agreement between firms at "successive stages of the distribution system. It specifically analyzes the effect of vertically imposed dealer-location clauses on competition and consumers and discusses whether such restraints are per se violations under Section 1 of the Sherman Act or whether they require analysis under the rule of reason. The note suggests that an absolute per se rule against all post-sale vertical restraints is overly broad and unjustified and calls for a more result-oriented approach in dealing with less offensive restraints on trade.

Share

COinS
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.