Lightning Cycles,Inc.,makes Lightning-brand motorcycles and accessories,which are distributed to authorized dealers,including Macho Motors,Inc.Macho operates dealerships in several locations.Lightning imposes territorial restrictions on Macho to insulate other dealers from direct competition.This is

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Territorial restrictions are subject to analysis under the rule of reason, where their anticompetitive effects are weighed against any procompetitive justifications. It is necessary to assess whether the territorial restrictions harm competition, and if so, whether they promote any procompetitive effects.