Zoning regulations may act as legal restraints of trade because they restrict where and how businesses may operate.

Question

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Zoning regulations restrict certain types of businesses from operating in certain areas, which may limit competition and act as a legal restraint of trade. For example, a zoning regulation that only allows fast food restaurants in one area may limit the options for consumers and restrict competition among other types of restaurants.

Zoning Regulations May Act as Legal Restraints of Trade Because