restraint of trade

Thân thiện

A company's exclusive contract with a supplier is a restraint of trade.

Definition

Noun: - An act that tends to prevent free competition in business: A "restraint of trade" is a legal term for any action, agreement, or practice that unfairly limits or suppresses commercial competition. This can include agreements between companies to fix prices, divide markets, or limit production, which are generally prohibited by antitrust laws.

Usage

• The term is primarily used in legal, economic, and business contexts to describe anti-competitive practices.
• It is often discussed in relation to laws designed to promote fair competition, such as antitrust or competition law.
• Example:
• Example:

Advanced Usage

• "Per se restraint of trade": In legal doctrine, this refers to an agreement or practice that is considered so inherently harmful to competition that it is automatically illegal, without needing an analysis of its actual effects.
  • Price-fixing agreements between competitors are treated as a per se restraint of trade.
• "Rule of reason" analysis: This is the alternative legal standard to "per se," where a court examines whether the restraint's anti-competitive effects outweigh its pro-competitive benefits.
  • The non-compete agreement was evaluated under the rule of reason to determine if it was an unreasonable restraint of trade.

Variants and Related Words

• Restraint (n): The act of holding back or limiting something.
• Anti-competitive practice (n): Any business behavior that reduces competition in a market; a synonym for actions constituting a restraint of trade.
• Antitrust (adj): Relating to legislation or regulations intended to prevent illegal restraints of trade and promote competition.

Synonyms

• Anti-competitive practice
• Inhibition of competition
• Market restriction

Related Phrases

• Contract in restraint of trade: A specific contract or clause within a contract that imposes limits on a party's freedom to conduct business, often subject to legal scrutiny.
  • The court had to decide if the supplier's exclusive dealing agreement was a contract in restraint of trade.

Học thuật

Noun

1. any act that tends to prevent free competition in business