Chapter I Restraint of Trade

• Pages: 1-48

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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 Price 22

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

Arrangements Affecting Price Subject to the Rule of

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