Restraint Of Trade

Summary of Restraint Of Trade

Combinations, contracts, agreements, or arrangements, either oral or written, designed to effect a monopoly, impede competition, fix prices, retard entry into the field, or otherwise obstruct trade that would otherwise occur if left to natural economic forces. Acts in restraint of trade are generally viewed as contrary to public policy, and many are specifically prohibited by law. renewed without the necessity of amending the credit.

A revolving letter of credit may revolve according to time, in which case a fixed sum becomes available at the beginning of a given time period-monthly, for example. If sums unused during one period may be carried over to the next period, the letter of credit is said to be cumulative', if such unused sums cannot be carried forward, the letter of credit is noncumulative.

A revolving letter of credit may also revolve according to value; such credits have their value reinstated after each drawing. Unless an overall value is assigned to the credit, this type of instrument permits unlimited drawings; for this reason, it is not commonly used.

(Main Author: William J. Miller)

Restraint of Trade and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Restraint of Trade: Combinations, contracts, or other oral or written arrangements designed to establish a monopoly position, impede competition, fix prices, or prevent entry by potential rivals. Acts in restraint of trade are generally treated by competition policies as inimical to the public interest, and may be specifically prohibited by antitrust laws.