combination in restraint of trade

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Definition
  1. Noun:
    • A monopoly, contract, combination, or conspiracy intended to restrain commerce: This is a legal term for an agreement or collaborative action between businesses that is designed to limit free competition. Such actions are typically illegal under antitrust laws, like those in the United States, because they harm consumers and the market by fixing prices, limiting production, or dividing markets.
Usage
  • This term is used almost exclusively in a legal or economic context.
  • It describes a specific category of illegal business practice.
  • It is often discussed in relation to antitrust law, competition law, and regulatory enforcement.
Examples
  • Noun:
    • The court ruled that the secret agreement between the two major manufacturers constituted a combination in restraint of trade.
    • Companies found guilty of forming a combination in restraint of trade face severe financial penalties.
Advanced Usage
  • The concept is a cornerstone of U.S. antitrust law, particularly under the Sherman Antitrust Act.
  • A "per se" violation (illegal on its face) of antitrust law often involves a naked combination in restraint of trade, such as price-fixing, without needing to prove its actual harmful effects.
Variants and Related Words
  • Restraint of trade (n): A broader term for any activity that impedes free competition.
  • Antitrust violation (n): The general category of illegal acts that includes combinations in restraint of trade.
  • Collusion (n): A secret or illegal cooperation, especially to deceive or gain an unfair advantage, which often leads to a combination in restraint of trade.
Synonyms
  • Anticompetitive agreement
  • Collusive practice
  • Cartel (specifically a type of combination)
Related Phrases
  • To form a combination in restraint of trade: The act of creating such an illegal agreement.
    • The executives were accused of conspiring to form a combination in restraint of trade.
  • In restraint of trade: A phrase used to describe an action or clause that limits free commerce.
    • The non-compete clause was deemed to be in restraint of trade and was invalidated by the court.
Noun
  1. (law) any monopoly or contract or combination or conspiracy intended to restrain commerce (which are illegal according to antitrust laws of the United States)