A restraint of trade may be classified as either horizontal or vertical.

Restraint of Trade

Legal term referring to any activity or agreement that restricts or impedes free competition in the market, often deemed unenforceable or illegal.

Horizontal

Describes a peer relationship in business or management settings, implicating equivalence rather than hierarchy.

Vertical

Describes the integration or arrangement within a supply chain where a company controls multiple stages of production or distribution, from raw materials to final product delivery.