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Territorial Restrictions And Per Se Rules--A Re-Evaluation Of The Schwinn And Sealy Doctrines, Michigan Law Review

Michigan Law Review

Horizontal territorial restrictions have traditionally been said to be per se illegal. That is, they are illegal no matter what effect they may have on competition. The legality of vertical territorial restrictions, however, is still an unsettled issue. The past decade saw a trend toward considering such restrictions per se violations of section I of the Sherman Act. That trend culminated in United States v. Arnold, Schwinn & Co., a case better known for its speculation than its reasoning. The Supreme Court, which ostensibly announced the per se illegality of these restrictions in Schwinn, will have an opportunity …