In order to avoid an unworkable construction of the Sherman Act,the courts have construed Section 1 to prohibit only those restraints of trade that unreasonably restrict competition.

Question

Quizplus · Accepted Answer

This statement accurately reflects the current interpretation and construction of Section 1 of the Sherman Act by the courts. The language of Section 1 broadly prohibits all agreements that unreasonably restrain trade or commerce, but in practice, the courts have developed a rule of reason analysis to determine whether the restraint at issue unreasonably restricts competition or has pro-competitive effects. This approach allows for some agreements or conduct that may have some restrictive effects on competition but are overall beneficial to consumers or efficiency in the market.

In Order to Avoid an Unworkable Construction of the Sherman