If Section 1 of the Sherman Act were read literally,it would prohibit almost all contracts.

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Section 1 of the Sherman Act prohibits any contract, combination, or conspiracy in restraint of trade. If this language were read literally, it would likely prohibit a vast array of agreements and contracts between businesses, ranging from simple discussions and information-sharing to more complex agreements related to pricing, production, distribution, and other aspects of commerce. However, courts have interpreted this provision more narrowly, applying a rule of reason analysis to determine whether a particular agreement unreasonably restrains trade and therefore violates the Sherman Act.

If Section 1 of the Sherman Act Were Read Literally,it