Ancillary Restraints Doctrine

Ancillary Restraints Doctrine

Summary of Ancillary Restraints Doctrine

A principle of U.S. antitrust law, regularly applied in foreign commerce cases, under which actions that might otherwise constitute a restraint of trade may be permitted if ancillary and subordinate to a larger, lawful agreement.

The doctrine was laid down by Justice William Howard Taft in the case of the United States versus Addison Pipe & Steel Company, stating that actions in restraint of trade must be cast down unless “ancillary to the main purpose of a lawful contract, and necessary to protect the covenantee in the enjoyment of the legitimate fruits of the contract, or to protect him from the unjust use of those fruits by the other party.”(85 Fed. 271 [5th Cir., 1898].)

(Main Author: William J. Miller)


Posted

in

, ,

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *