Developments in the Law of Vertical Nonprice Restrictions: A Welcome Return to The Rule of Reason

Authors

Paul A. Koches

Abstract

The Supreme Court of the United States reversed a prior holding and ruled that nonprice restrictions on competition among distributors are not a per se violation of section 1 of the Sherman Act. In so doing, the Court placed significant reliance on the economic implications of the challenged marketing arrangement. The author explores the Court's increased sensitivity to marketplace realities in its decision to return to a more flexible standard of gauging the illegality of vertical restriction schemes. The business planner is cautioned on possible antitrust pitfalls resulting from the newly engendered economic efficiency guidelines. In conclusion, the reinstatement of a reasonableness approach is welcomed.

Recommended Citation

Paul A. Koches, Developments in the Law of Vertical Nonprice Restrictions: A Welcome Return to The Rule of Reason, 33 U. Mia. L. Rev. 247 (1978)
Available at: https://repository.law.miami.edu/umlr/vol33/iss1/10