Zippy Moto-Bikes,Inc. ,wants to prevent discount dealers that carry its products without providing warranty services from cutting into the business of full-service dealers.Zippy's decision to restrict discount dealers to one type of customer and full-service dealers to another is

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Zippy Moto-Bikes, Inc.'s decision to restrict discount dealers to one type of customer and full-service dealers to another is subject to evaluation under the rule of reason, which weighs the anti-competitive effects of a business practice against its pro-competitive benefits. It is not an automatic violation of antitrust law, but it could be deemed unlawful if it substantially harms competition without serving a legitimate business purpose. The Sherman Act's per se violations apply to horizontal price-fixing, market allocation, and group boycotts, none of which appear to be present in this scenario. The Clayton Act prohibits certain types of conduct that may substantially lessen competition or tend to create a monopoly.