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Explain the “free-rider” problem that frequently concerns the courts in cases involving vertical territorial restraints, among others.

In Continental T.V., Inc. v. GTE Sylvania, Inc., 433 U.S. 36 (1977), the U.S. Supreme Court took the position that inter brand, rather than intra brand, agreements must be the primary concern of antitrust law. a. Why did the Court take that view? b. In your opinion, is the Court correct? Explain. c. Explain the “free-rider” problem that frequently concerns the courts in cases involving vertical territorial restraints, among others.


 

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