A vertical allocation of customers or territory
A)is a per se violation of Section 1 of the Sherman Act.
B)is a rule of reason violation of the Sherman Act.
C)is not a violation of the Sherman Act.
D)is illegal if it adversely affects one party over the other.

Question

Quizplus · Accepted Answer

Vertical allocation of customers or territory is typically analyzed under the rule of reason approach when considering its legality under the Sherman Act. This means that the court will examine the context and the actual impact of the arrangement on competition to determine if it violates antitrust laws, rather than deeming it automatically illegal (per se) or legal without such analysis.

A Vertical Allocation of Customers or Territory