vertical agreement

vertical agreement
ver·ti·cal agreement /'vər-ti-kəl-/ n: an agreement among economic competitors on different levels of production or distribution that affects competition compare horizontal agreement
◇ Unlike horizontal agreements, vertical agreements are not considered illegal per se under antitrust laws, but they must withstand judicial scrutiny to be held valid.

Merriam-Webster’s Dictionary of Law. . 1996.

vertical agreement
An agreement (or restrictions) between companies or firms trading at different levels of supply, for example, between a manufacturer and wholesaler, a wholesaler and retailer, or a licensor and licensee.
+ vertical agreement
USA
An agreement between two or more businesses operating at different levels of production or distribution in the market, for example, an agreement between a manufacturer and a distributor or a wholesaler and a retailer.
Compare this to a horizontal agreement.
The distinction between the two is important under antitrust laws, because the nature of the relationship between the parties may determine how potential violations are evaluated.
For examples, see Practice Note, US Antitrust Laws: Overview: Horizontal or Vertical Restraints (www.practicallaw.com/9-204-0472).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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