Vertical Restraint
/ˈvɜːrtɪkəl rɪˈstreɪnt/
Definitions
- (n.) A contractual or agreed limitation imposed in a vertical commercial relationship, typically between a manufacturer and a distributor or retailer, restricting certain trade practices such as pricing, territory, or customer allocation.
The court examined whether the vertical restraint violated antitrust laws by limiting competition among retailers.
Forms
- vertical restraint
- vertical restraints
Related terms
See also
Commentary
Vertical restraints often raise complex issues under competition law, requiring careful analysis of their competitive effects and justification in drafting contracts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.