rule of reason

The "rule of reason" is a legal principle used in antitrust law to evaluate business practices. Rather than automatically deeming certain actions illegal, it assesses whether they promote or restrict competition in a marketplace. Courts look at the context and effects of a business strategy to determine its reasonableness. If a practice enhances competition and benefits consumers, it may be considered acceptable, even if it seems restrictive at first glance. In essence, the rule of reason balances business interests with the need to maintain fair competition.