Does the rule unreasonably restrain trade

Assignment Help Business Law and Ethics

Reference no: EM131390690

The National Society of Professional Engineers (Society) had an ethics rule that prohibited member engineers from disclosing or discussing price/fee information with customers until after the customer had hired a particular engineer. This rule against competitive bidding was designed to maintain high standards in the field of engineering.

The Society felt that competitive pressure to offer engineering services at the lowest possible price would encourage engineers to design and specify inefficient, unsafe, and unnecessarily expensive structures and construction methods. According to the Society, awarding engineering contracts to the lowest bidder, regardless of quality, would be dangerous to the public health, safety, and welfare. The Society emphasizes that the rule is not an agreement to fix prices.

Rather, it claims the rule was drafted by experienced, highly trained professional engineers to prevent public harm and is therefore reasonable. Does the rule unreasonably restrain trade and thus violate Section 1 of the Sherman Act? Why?

Reference no: EM131390690

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