How did the courts determine an illegal restraint of trade?
(A) They established the rule of reason in 1911.
(B) They determined what share of the market a company controlled.
C They judged the size of the company, targeting ones deemed too large.
D) They left the definition to the state legislatures.

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07-06-2024
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How did the courts determine an illegal restraint of trade?
(A) They established the rule of reason in 1911.
(B) They determined what share of the market a company controlled.
C They judged the size of the company, targeting ones deemed too large.
D) They left the definition to the state legislatures.

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-06-07T17:15:14-04:00

Final answer:

The courts determine an illegal restraint of trade by applying the rule of reason, focusing on specific behaviors rather than company size or structure.

Explanation:

The courts determined an illegal restraint of trade through the application of the rule of reason, which considers the specific behaviors of companies rather than their size or structure. For example, in cases like Eastman Kodak and United Shoe Machinery, the courts assessed the reasonableness of their conduct despite their dominant market positions. This approach emphasizes evaluating whether business practices are achieved through legitimate means.

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