What is the test for determining whether an agreement is unreasonable and therefore illegal?
MultiRegion, United States of America
The following excerpt is from Filco v. Amana Refrigeration, Inc., 709 F.2d 1257 (9th Cir. 1983):
1 "[T]here are certain agreements or practices which because of their pernicious effect on competition and lack of any redeeming virtue are conclusively presumed to be unreasonable and therefore illegal without elaborate inquiry as to the precise harm they have caused or the business excuse for their use." Northern Pacific Railway v. United States, 356 U.S. 1, 5, 78 S.Ct. 514, 518, 2 L.Ed.2d 545 (1958).
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