Voluntary restraint of trade refers to agreements between parties that intentionally limit trade, sales, or transportation within interstate commerce. These agreements can arise from mutual consent and are often designed to control market competition or protect business interests.
This term is primarily used in antitrust law, which governs fair competition among businesses. Voluntary restraints can arise in various legal contexts, including:
Individuals or businesses may use legal forms to draft agreements that include voluntary restraints, ensuring compliance with applicable laws and regulations.
Here are a couple of examples of abatement:
Example 1: A group of local grocery stores agrees not to sell certain products to avoid competition among themselves. This agreement could be considered a voluntary restraint of trade.
Example 2: A manufacturer and a distributor enter into an agreement where the distributor agrees not to sell products to competing retailers, limiting market access for those competitors. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Strict enforcement of antitrust laws; voluntary restraints may face more scrutiny. |
| Texas | More lenient toward voluntary restraints if they promote competition. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Restraint of trade | Any agreement that limits competition in the marketplace. | Voluntary restraints are agreed upon by parties, while other restraints may be imposed by law. |
| Antitrust laws | Laws designed to promote competition and prevent monopolies. | Antitrust laws govern the legality of voluntary restraints and can challenge them if they harm competition. |
If you are considering entering into an agreement that may involve voluntary restraint of trade, it is advisable to:
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| Attribute | Details |
|---|---|
| Typical fees | Varies based on legal counsel and complexity of the agreement. |
| Jurisdiction | Federal and state laws apply. |
| Possible penalties | Legal action for antitrust violations; damages may be awarded. |
It is an agreement between parties that intentionally limits trade or commerce.