The rule of reason refers to the Supreme Court's position that all restraints of trade are per se unlawful.

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In the Standard Oil decision of 1911,the U.S.Supreme Court articulated what has come to be known as the rule of reason.In essence,the Court said that the Sherman Act forbids only unreasonable restraints of trade.The reasonableness of a restraint of trade is largely determined by a detailed balancing of the pro- and anticompetitive effects of the situation.

The Rule of Reason Refers to the Supreme Court's Position