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.
Michael W. Miller,
Dealer Location Clauses and the Per Se Rule: From Schwinn to GTE Sylvania,
5 Fordham Urb. L.J. 103
Available at: http://ir.lawnet.fordham.edu/ulj/vol5/iss1/5