What is the difference between per se and rule-reason analysis under the Cartwright Act?

California, United States of America


The following excerpt is from Flagship Theatres of Palm Desert, LLC v. Century Theatres, Inc., 268 Cal.Rptr.3d 476 (Cal. App. 2020):

The distinction between per se and rule of reason analysis stems from the fact that the Cartwright Act, like its federal counterpart the Sherman Act, prohibits not all agreements restraining trade, but rather agreements that unreasonably restrain trade. (See Business Electronics v. Sharp Electronics (1988) 485 U.S. 717, 723, 108 S.Ct. 1515, 99 L.Ed.2d 808 ( Business Electronics ) [Sherman Act]; Palsson, supra, 16 Cal.3d at pp. 930931, 130 Cal.Rptr. 1, 549 P.2d 833 ["In general, only unreasonable restraints of trade are prohibited [by the Cartwright Act]."].)

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