A horizontal scheme refers to an agreement between businesses that operate at the same level within a market, typically competitors. These agreements can take various forms, such as collaboration on marketing strategies or sharing resources. However, horizontal schemes can violate antitrust laws, particularly if they involve price-fixing or other actions that restrict free trade.
Horizontal schemes are primarily relevant in antitrust law, which aims to promote fair competition and prevent monopolistic practices. Legal professionals may encounter these agreements when assessing business practices, mergers, or collaborations between competitors. Users can manage some aspects of this legal area themselves with the right tools, such as legal templates from US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
One example of a horizontal scheme is when two competing coffee shops agree to set the same price for their beverages to avoid competing on price (hypothetical example). Another example could be two manufacturers collaborating to reduce production costs by sharing technology, which could also raise antitrust concerns if it limits competition.
Key statutes relevant to horizontal schemes include:
| Term | Definition | Key Differences |
|---|---|---|
| Vertical Scheme | An agreement between businesses at different levels of the supply chain. | Involves different market levels rather than direct competitors. |
| Price-Fixing | An agreement between competitors to set prices at a certain level. | Price-fixing is a specific type of horizontal scheme. |
If you are involved in a business agreement that may be considered a horizontal scheme, it is crucial to evaluate the potential legal implications. You can explore US Legal Forms for templates that can help you draft compliant agreements. However, if the situation is complex, seeking advice from a legal professional is recommended to ensure compliance with antitrust laws.
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A horizontal scheme is an agreement between competitors at the same level in the market, which can raise antitrust concerns.