If a luxury handbag firm enters into an agreement with its distributors by setting the minimum price its distributors can resell its handbags, United States antitrust agencies could examine this agreement using the rule- of- reason.

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The rule-of-reason is a legal standard used by United States antitrust agencies to examine vertical restraints, such as minimum price agreements between manufacturers and distributors. The agencies would evaluate whether the agreement unreasonably restrains trade or promotes competition. Therefore, if a luxury handbag firm enters into an agreement with its distributors by setting the minimum price its distributors can resell its handbags, it would be subject to examination under the rule-of-reason.

If a Luxury Handbag Firm Enters into an Agreement with Its