The "rule of reason" indicated that
A) if less than four firms account for three-fourths of an industry's sales, the industry is in violation of the Sherman Act.
B) social regulation should not be enforced unreasonably so that costs exceed benefits.
C) the mere possession of monopoly power is a violation of the antitrust laws.
D) only contracts and combinations that unreasonably restrain trade violate the antitrust laws.

Question

Quizplus · Accepted Answer

The "rule of reason" states that only contracts and combinations that unreasonably restrain trade violate the antitrust laws. This means that the courts will examine the overall effect of a particular business practice on competition, taking into account any procompetitive benefits, in order to determine whether it violates antitrust laws. This is in contrast to per se violations, where certain business practices are automatically considered illegal without any examination of their actual effects on competition.

The "Rule of Reason" Indicated That