RESTRAINT OF TRADE
restraint of trade. 1. A limitation on business dealings or professional or gainful occupations.
2.Antitrust. An agreement between or combination of businesses intended to eliminate
competition, create a monopoly, artificially raise prices, or otherwise adversely affect the free
market. • Restraints of trade are usu. illegal, but may be declared reasonable if they are in the best
interests of both the parties and the public. — Often shortened to restraint. — Also termed
conspiracy in restraint of trade. See PER SE RULE; RULE OF REASON. [Cases: Monopolies
12. C.J.S. Monopolies §§ 19, 26–27, 62–63.]
horizontal restraint.A restraint of trade imposed by agreement between competitors at the
same level of distribution. • The restraint is horizontal not because it has horizontal effects, but
because it is the product of a horizontal agreement. — Also termed horizontal agreement.
unreasonable restraint of trade.A restraint of trade that produces a significant anticompetitive
effect and thus violates antitrust law.
vertical restraint.A restraint of trade imposed by agreement between firms at different levels
of distribution (as between manufacturer and retailer). [Blacks Law 8th]