Asked by Blake cannistraro on Jul 15, 2024
Verified
Contracts in restraint of trade always violate one or more federal or state statutes.
Restraint Of Trade
Any contract or combination that tends to eliminate or reduce competition, effect a monopoly, artificially maintain prices, or otherwise hamper the course of trade and commerce as it would be carried on if left to the control of natural economic forces.
Federal Statutes
Laws enacted by the national government of the United States that apply across the country.
- Recognize the limitations and requirements for contracts in restraint of trade and their impact on competition.
Verified Answer
TB
Talasila Bharat ChowdaryJul 19, 2024
Final Answer :
False
Explanation :
Not all contracts in restraint of trade violate federal or state statutes; some are considered reasonable and enforceable if they protect legitimate business interests and are limited in scope regarding time, geography, and activities.
Learning Objectives
- Recognize the limitations and requirements for contracts in restraint of trade and their impact on competition.