The "rule of reason"
A)applies to business practices that are illegal regardless of their economic rationale or their consequences
B)applies to business practices that are legal, regardless of their consequences
C)means that business practices cannot be proven to be illegal, and a consent decree is required to halt the practices
D)considers why a certain business practice was adopted and what the effects on competition are, before determining whether the practice is illegal
E)focuses on market structure rather than on the behavior of firms in determining whether antitrust violations have occurred

Question

Quizplus · Accepted Answer

The "rule of reason" is a legal principle that applies to business practices that are not per se illegal, meaning they cannot be easily classified as antitrust violations solely based on their nature, but instead require a more detailed analysis of their purpose and impact on competition. In other words, the rule of reason considers why a certain business practice was adopted and what the effects on competition are, before determining whether the practice is illegal.

The "Rule of Reason