The legality of which of the following actions would be determined using the rule- of- reason?
A)an agreement with a competitor firm to set prices
B)an agreement with a competitor firm submit a low bid on a contract
C)an agreement with a competitor firm submit a high bid on a contract
D)an agreement with a customer about the markets in which the customer is allowed to resell the product

Question

Quizplus · Accepted Answer

The rule-of-reason is a legal doctrine used to evaluate the legality of certain business practices based on their actual impact on competition. Among the options, an agreement with a customer about the markets in which the customer is allowed to resell the product (D) is most likely to be evaluated under this standard, as it involves assessing whether the restriction enhances or suppresses market competition. Agreements to set prices or manipulate bids (A, B, C) are typically considered per se illegal under antitrust laws, meaning they are automatically deemed to violate the law without a detailed examination of their effects on competition.

The Legality of Which of the Following Actions Would Be