Legal Dictionary of Pakistan

Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.

Competition

The effort or action of two or more commercial interests to obtain the same business from third parties.

fair competition

Open, equitable, and just competition between business competitors.

horizontal competition

Competition between a seller and its competitors. a The Sherman Act prohibits unreasonable restraints on horizontal competition, such as price-fixing agreements between competitors. - Also termed primary-line competition.

meeting-competition defense

Antitrust. A defense to a charge of price discrimination whereby the defendant shows that the lower price was a good-faith attempt to match what it believed to be a competitor's equally low offer.

noncompetition covenant

A contractual provision - typically found in employment, partnership, or sale-of-business agreements - in which one party agrees to refrain from conducting business similar to that of the other party. ( Courts generally enforce these clauses for the duration of the original business relationship, but clauses extending beyond termination must usu. be reasonable in scope, time, and territory. - Also termed noncompete covenant; covenant not to compete; restrictive covenant; promise not to compete; contract not to compete.

perfect competition

A completely efficient market situation characterized by numerous buyers and sellers, a homogeneous product, perfect information for all parties, and complete freedom to move in and out of the market. ( Perfect competition rarely if ever exists, but antitrust scholars often use the theory as a standard for measuring market performance.

primary-line competition

See horizontal competition under COMPETITION.

secondary-line competition

See vertical competition under COMPETITION.

unfair competition

1. Dishonest or fraudulent rivalry in trade and commerce; esp., the practice of endeavoring to substitute one's own goods or products in the market for those of another by means of imitating or counterfeiting the name, brand, size, shape, or other distinctive characteristic of the article or its packaging. 2. The body of law protecting the first user of such a name, brand, size, shape, or other distinctive characteristic against an imitating or counterfeiting competitor.

vertical competition

Competition between participants at different levels of distribution, such as manufacturer and distributor. - Also termed secondary-line competition. competitive advertising See ADVERTISING