Chapter I Restraint of Trade

• Pages: 1-48

vii

CONTENTS

Foreword................................................................................................. iii

Restraints of Trade.................................................................................1

B. Elements of a Section 1 Violation............................................... 1

Proof of a Contract, Combination, or Conspiracy.............1

Defining “Agreement”: Distinguishing Unilateral

from Concerted Action..............................................1

Proving “Agreement”: Proof of Horizontal and

Vertical Agreements.................................................. 2

(1) Proving Horizontal Agreement in a Criminal

Case................................................................... 2

(2) Proving Horizontal Agreement in a Civil Case. 3

(3) Proving a Hub-Spoke-and-Rim Conspiracy......6

(4) Proving a Vertical Agreement........................... 8

Withdrawal from a Conspiracy..................................8

A Special Case: Intraenterprise Conspiracy..............9

Trade Association Conduct as Concerted Action....10

Proof That the Restraint of Trade Is Unreasonable.........12

The Per Se Rule.......................................................12

The Rule of Reason.................................................16

(1) Proving an Anticompetitive Effect: The

Spectrum and Focus of Analysis.....................16

The Quick Look ………………………….16

Truncation Through Direct Evidence of

Actual Anticompetitive Effect..……….….16

Detailed Market Analysis with a Focus on

Market Power …………………………….17

Permitted Justifications...…………….......20

Balancing the Competitive Effects……….21

C. Horizontal Restraints of Trade..................................................22

Horizontal Arrangements Controlling or Affecting Price22

Per Se Illegal Arrangements Affecting Price...........22

Arrangements Affecting Price Subject to the Rule of

Reason.....................................................................24