What does "Restraint of Trade" Mean?

@everetra - I seriously doubt we have real freedom from monopolies, regardless of the laws in place that seek to prohibit restraint of trade.

The problem is that while you can legally break up a monopoly, you can’t always fundamentally change how the free market works.

Take Microsoft as an example. It’s been the subject of plenty of litigation because of its monopoly status. Yet the reality is that still, most of us buy Microsoft products.

Few of my friends want to dive into Linux, and Mac seems to be the domain of graphics arts professionals. The way I see it, Microsoft is still a monopoly from a practical perspective.

@nony - I always sign a non compete clause in a consulting service contract when I do work for a software company, but I seriously doubt any of these agreements are enforceable.

I’ve never had to worry about it, though, because I’ve never violated the letter or spirit of the law so it doesn’t matter either way. I do find it amusing to read the verbose legalese I’m forced to sign, which stipulates that the company owns all of the “ideas” I create on the job.

How could they possibly do that? Ideas live in my head, and I don’t think they are going to give me a lobotomy when I leave. I realize it’s meant to protect them from unfair competition but the language is a bit overkill in my opinion.

@Charred - If they’re only adding ten cents, then the wholesale price is high to begin with – who sets that price?

The fact is oil is traded like a commodity on the open market and that’s what determines its price. What’s especially shameless is when a natural disaster like a hurricane hits an area, and gas stations start spiking the price of gasoline really high.

In my opinion, that’s price gouging and it’s illegal. The owners claim it’s supply and demand; that they might run out otherwise. I say, if they run out, let them run, but at least set the price so that the gasoline is still accessible to people who can afford it.

Sometimes people think that a company has violated a restraint law when it hasn’t. When gas prices rise, as an example, everyone wants to shout at the oil companies and accuse them of exploitation or greed.

The reality, at least from what I understand, is that they don’t set the gas prices. The stations do. However, as the article points out, sometimes the station’s corporation (if it’s part of a franchise) may dictate what the price should be, in which case that would certainly come close to price fixing.

But people should quit blaming the oil companies for prices at the pump, as good as it may feel otherwise to do so. As for what gas stations use to set the price, I’ve heard that they add ten cents or so to the wholesale price, which isn’t exactly an obscene profit in my opinion.