Which of the following was the result in Continental T.V. Inc., v. GTE Sylvania

Question

Which of the following was the result in Continental T.V. Inc., v. GTE Sylvania Inc., the U.S. Supreme Court case in which Continental argued that Sylvania violated the Sherman Act by restricting the location of retailers that could sell its product?

a) That the rule-of-reason standard should be applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect.

b) That a per se rule of illegality is applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect.

c) That the per se rule of illegality is applied in a vertical restriction case only when a manufacturing defendant is involved; otherwise, the rule-of-reason test applies.

d) That the rule-of-reason should always be applied when vertical restrictions are involved.

e) The court upheld the continued used of the bright line per se rule of illegality for all vertical restrictions.

Explanation / Answer

The result of the case is : b) That a per se rule of illegality is applied in a vertical restriction case unless departure from the rule is justified based upon a demonstrable economic effect

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