Restraint of Trade: Definition & Example


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question 1 of 3

The three largest brokers in town agree to set their commission rates at six percent. What type of antitrust violation has occurred?

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1. Dick and Jane own the only two brokerage firms in the market. They want to merge to take advantage of the synergy created. Why may they have problems with federal antitrust law if they attempt to merge?

2. Tom, Dick and Harry's firms control about 95 percent of the market. They agree to divide the market into three equal exclusive territories so they don't have to compete with each other. What's the name of this illegal practice?

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About This Quiz & Worksheet

We designed our worksheet and quiz to effectively gauge your knowledge of restraint of trade. Various violations of antitrust law are covered on the quiz.

Quiz & Worksheet Goals

These materials help test your understanding of:

  • An activity that can create an anti-competitive market environment
  • Antitrust violation in which companies agree on a commission rate
  • An illegal practice in which companies divide a market into equal territories to avoid competition
  • What would happen if the only two brokerage firms in an area merged

Skills Practiced

  • Reading comprehension - ensure that you draw the most important details from the related lesson on restraint of trade
  • Defining key concepts - ensure that you can accurately define main phrases, such as group boycotting, price fixing, and market allocation
  • Information recall - access the knowledge you have gained regarding antitrust violations

Additional Learning

To keep learning more about these laws, check out the lesson called Restraint of Trade: Definition & Example. This lesson can help you cover these other topics:

  • Examples of illegal conduct
  • Sherman Antitrust Act
  • Commonly prohibited business practices