Author

This Note has argued that a proper understanding of the market-correcting nature of nonprofit activity is necessary to the enforcement of the antitrust laws. As long as the competition-enhancing virtues of nonprofit activity are recognized, the flexible rule of reason can be used to implement the objectives of the Sherman Act by insuring the proper functioning of our markets. However, an antitrust jurisprudence that is blind to the imperfect nature of the markets in which nonprofit organizations operate and chooses instead to rely on an unyielding faith that “all elements of a bargain . . . are favorably affected by the free opportunity to select among alternative offers” can only reinforce market failures and thus frustrate the various policy objectives of the Sherman Act.