The rule of reason has no application when determining the legality of non-price vertical restraints on trade.

Question

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The rule of reason does apply when determining the legality of non-price vertical restraints on trade. This means that such restraints can be evaluated on a case-by-case basis to determine whether they have anti-competitive effects that outweigh any pro-competitive benefits. Examples of non-price vertical restraints include exclusive dealing arrangements, tying arrangements, and territorial restrictions. The rule of reason analysis involves examining factors such as market power, barriers to entry, and potential harm to competition.

The Rule of Reason Has No Application When Determining the Legality