All of the following agreements represent an unreasonable restraint of trade except:
A) a combination to create a monopoly.
B) an agreement to obtain a "corner" on a market.
C) an association of merchants to increase prices.
D) a valid restrictive covenant.

Question

Quizplus · Accepted Answer

The other three choices represent agreements that violate antitrust laws by creating an unreasonable restraint of trade. A combination to create a monopoly, for example, involves two or more companies coming together to dominate a particular market and eliminate competition. An agreement to obtain a "corner" on a market is similar, in that it involves controlling supply in a way that eliminates competition. An association of merchants to increase prices is also a violation, as it involves colluding to set prices higher than they would be in a competitive market. In contrast, a valid restrictive covenant is an agreement in which one party agrees not to compete with another party for a specified period of time, often in exchange for compensation. While these covenants can limit the ability of individuals to work in certain fields or locations, they are generally considered reasonable if they are narrowly tailored to protect a legitimate business interest.

All of the Following Agreements Represent an Unreasonable Restraint of Trade